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Auto Insurance FAQ's |
Q: What
coverage do I purchase to cover damages to my vehicles?
A: There are different variables
that need to be considered when purchasing the right coverage's. For
instance:
• If you crash your vehicle into something like a tree, pole or
another vehicle then collision coverage will handle it.
• If your car is stolen vandalized, catches on
fire, or damaged by nature or the elements, then you'll need comprehensive
coverage.
Q: What happens if I'm hit by an uninsured driver?
A: If such a problem occurs then you need coverage called "UM/UIM"(uninsured/underinsured motorist). Which is required in most states. It will cover your car getting fixed and medical bills that need to be paid. It is used instead of your collision coverage.
Q: What is an SR-22?
A: An SR-22
proves that you are covered and have auto insurance. If your a "high
risk" driver, your state may require you to carry one on you when
you drive. The reasons for having to sign up for an SR-22 are:
• DUI (driving while intoxicated)
• Negative points, in a short amount of time, on your record
• Involved in an accident and not insured
• Repeatedly breaking traffic laws
• Major moving violations - reckless driving
Q: If I'm in an auto accident, does it always effect my rate?
A: No - There are many factors when an accident occurs that an insurance company should take into consideration:
1. Was the accident your fault? If not, then most of the
time your premium will not increase
2. How bad was the accident? If the result of the auto accident are
minor and require a minimal payout, and if there are no injuries, the
insurance company should not increase your premium.
3. Claim History - In many states multiple claims in a short period
of time should cause a premium increase.
Q: Can you fully explain Auto Coverage?
A: Sure! Why not? You might not understand Auto Insurance. But once you understand the different types of coverage's that are available to you it might make things a little more simple. Usually your insurance in broken down into seven primary coverage's. An auto policy is created when you mix and match the coverage's you need. Each of these coverage's has its own separate premium. Your monthly premium payment is the total of these separate premiums.
Bodily injury liability - provides protection if you injure or kill someone while operating your car. It also provides for a legal defense if another party in the accident files a lawsuit against you.
If you are in an accident that is considered serious,
you want to make sure you have enough insurance to cover a judgment
against you in a lawsuit, otherwise that could go after your personal
assets.
This coverage only covers injury to people, not to vehicle damage. Therefore
it’s a good idea to have the same level of coverage for all of
your vehicles.
Medical payments, no-fault or personal injury protection coverage usually
pays for the medical expenses of the injured driver and passengers in
your car.
Uninsured motorists coverage - pays for your injuries
caused by an uninsured driver or, in some states, a hit-and-run driver,
in a crash that is not your fault.
Comprehensive physical damage coverage
- If your car is stolen vandalized, catches on fire,
or damaged by nature or the elements.
Collision coverage - pays for damage to your car when
your car hits, or is hit by, another vehicle or other object. For older
cars, consider dropping this coverage, since coverage is normally limited
to the cash value of your car.
Property damage liability - protects you if your car
damages someone else’s property. It also provides you with legal
defense if another party files a lawsuit against you. It is a good idea
to purchase enough of this insurance to cover the amount of damage your
car might do to another vehicle or object.
Rental reimbursement coverage - pays for a rental vehicle
(between $15- $20 a day) when the insured's vehicle is out of commission
as a result of a loss covered under comprehensive or collision coverage's.
Q: I'm a young driver... are my insurance rates going to start off high?
A: Many young people feel they are taken advantage of by being charged high rates for insurance when they first start to drive. State regulatory agencies have agreed that those drivers with the most accidents should pay higher insurance rates. The fact is, statistically, young drivers have the worst accident record of any age group. This does not mean teens are assumed to be poor drivers. In fact, teens often have superior motor skills and response time. But teens often have less experience, which increases the chance of making a mistake. By keeping a good driving record, you show that you’re a safe driver, which can translate into lower insurance costs in the future.
Q: Can you give me a list of insurance terms?
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