Car Insurance FAQ
If you are a US driver, licensed to drive in any of the 50 states, and you own a vehicle, then you have car insurance. this article covers car insurance FAQ, and for help and advice we turned to aseguranzadecarros.net. As a consumer, there are several things about your car insurance policy that you should know and understand. Often times, it’s a lack of knowledge about the coverages you have that can lead to paying too much or, perhaps even worse, not having adequate coverage. Without adequate auto insurance coverage, you put yourself at risk of financial loss, and you might become the target of a lawsuit that could literally wipe you out financially, especially if you have any assets.
You see, that’s really the primary purpose of your car insurance, to protect you financially in case of an accident, and to mitigate, or reduce, your personal liability for such an accident. Most every state requires owners of motor vehicles to carry insurance coverage on their vehicles, and this insurance must cover at least three main areas, and up to seven ancillary areas.
Main and Ancillary Coverages
These three main areas are collision, which covers physical damage to your vehicle in the event of a collision; liability, which covers bodily injury and property damage, including medical and hospitalization, as well as accidental death, and comprehensive, which covers loss or damage of your vehicle from events other than collision, such as fire and theft.
The ancillary coverages can include uninsured motorist coverage, which covers you in the event of an accident with a person who has no insurance; underinsured motorist, coverage that protects you if you are involved in a motor vehicle accident with someone who does not have enough insurance, rental reimbursement, which is self explanatory, and emergency road service, which covers towing and breakdown.
Another facet of your auto insurance coverage is something called your deductible. This is the amount you would need to pay out of your own pocket in the even of a claim, before any insurance coverage kicked in. Typically, deductibles relate directly to the collision coverage you have written into your policy, and the higher the deductible, the lower the cost of your car insurance premiums. For example, having a $1000 collision deductible would mean that you would be responsible for the first $1000 of any repairs resulting from a loss, but would also carry a lower premium than a policy with a $500 deductible.
So, essentially, the higher amount of risk you are able to bear yourself, the lower your insurance will cost. It pays to carefully consider how much you could reasonably afford to pay out of your own funds in the event of a motor vehicle accident, or the theft of your car or truck. Then, go with the highest deductible you can to keep your rates low.
Who Is Covered?
Typically, your car insurance policy will cover the following persons…
1. Your spouse and yourself.
2. Relatives, especially children, who reside with you.
3. People you have permitted to drive your vehicle, as long as they hold a valid drivers license.
To be certain however, you should read your policy carefully, or ask your local car insurance agent or company for clarification about who your policy actually covers.
What Else Is Covered By Car Insurance?
Have you ever rented a car and been asked by the rental agent if you wanted to opt for the extra cost insurance? Most of us have experienced this, and normally we say yes because we’re frightened that if something should happen while we have the rental, we would be on the hook. Well, that’s most likely not true, because most folk’s auto insurance policy covers them and their rental car in the event of an accident. Call your agent and ask, and most likely they will tell you that you are covered and it’s perfectly safe to decline the added cost coverage offered by the rental company. This can result in a big savings for you.
Young Drivers – Higher Risk Equals Higher Cost
For a long time now insurance companies have understood something- young drivers are involved in many more motor vehicle accidents than their more mature counterparts. As a result, when an insurance firm rates a youthful motorist, the quote is typically much higher than it would be for someone even just a few years older.
In fact, the magic age seems to be about 25 years old, perhaps a bit younger for women. Yes… there is a difference between the safety records of young women and young men. Something about the aggression of the average youthful male driver makes them more prone to traffic tickets and moving violations.
So, when your teen asks if they can learn to drive, and take the test for their drivers license, prepare to feel a new crunch in the region of your wallet!
What About Liability Limits
The liability limits you choose for your car insurance policy will most likely look something like 100,000/300,000/50,000 or 15,000/30,000/10,000, and basically these numbers represent the maximum the insurance company would pay for bodily injury and damage. The first number is the maximum per person, and the second number is the maximum per accident the company would pay for bodily injury. The third number is the maximum the company would pay for damages to other vehicles (not yours) in a vehicular accident in which you were at fault.
So, if you opt for 100/300/50 coverage, your insurer would pay up to $100,000 per person for bodily injury coverage, up to $300,000 max per accident, and up to $50,000 for damage caused to other vehicles if the accident were your fault. Obviously, 15/30/10 coverage is much less expensive than 100/300/50, but you also need to check with your agent. Each state has requirements, and you can’t go below the state minimum.
Do I Need Collision and Comprehensive?
Finally, not every driver needs to carry collision coverage on their car. If you could afford to repair or replace your car out of your own pocket, you might want to dispense with the collision and comprehensive components of your car insurance policy. That would result in a hefty savings. However, if you have leased or financed your car, the finance company will most likely require you to carry these coverages, because they will want their own interest in your vehicle protected.
Obviously, car insurance can be confusing, and so a page about car insurance FAQ is needed. You can see why it’s important to take some time to learn about and understand the insurance terms and conditions we’ve discussed here, and there is also more you should know. You will find a great deal of that information on this website. For example, there are many discounts available that can save you money, such as safe driver discounts, safety feature discounts, and educational discounts.
You will also learn about the service provided by local agents, which are the highest rated and lowest cost companies, and additional tips and tricks for cutting your premiums. In addition, you can learn here how to save a substantial amount of money every year on your rates, just by taking the time to get competitive car insurance quotes.