Car Insurance FAQ

Car Insurance FAQ

Car Insurance FAQ

car insurance faqIf 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 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.


How Much Life Insurance Do I need

How Much Life Insurance Do I need

How can I determine the amount of life insurance that I need?

Life Insurance NeedsIn order to determine the amount of life insurance you should purchase, you must look at your current and future financial obligations along with all other resources your family has available.

Future obligations include the amount of money it would take to ensure that your surviving family members can pay for immediate and ongoing costs, including taxes, funeral costs, clothing, mortgage payments, food, utilities, retirement funding and college educations.

When determining resources, you should include your spouse’s income, income producing assets, life insurance policies, savings and investments that you already own.

Once you have determined these two things, you can calculate how much additional life insurance that you need. simply subtract your obligations from the families resources. The amount left is the minimum amount of life insurance you should purchase. Do not think you are alone if this sounds confusing. Most people feel the same way. Luckily, you can turn to your insurance agent. They have the training necessary to help you determine the amount of life insurance you need.

If you do not want to speak with an insurance agent or you want to try to determine the amount of life insurance you need on your own, visit our website and use the Life Insurance Needs Calculator. This tool will ask you a variety of questions to help you determine the amount of life insurance you need to help see that your family is provided for in the event of your death.

Who Needs Homeowners Coverage

Who Needs Homeowners Coverage

Who should purchase homeowners insurance?

who-needs-homeowners-coverageHomeowners- A homeowners insurance policy protects your home and the contents of your home against theft, fire damage, wind damage, water damage and more.

If you rent a piece of property, a renter’s policy protects your personal property in the event of a fire, theft or damage caused by wind or water.

Additionally, a homeowners insurance policy covers accidents that cause personal injury or property damage when they are on your property.

Life Insurance Policies

Life Insurance Policies

What are the different types of policies and how do I determine which is best for me?

Life PoliciesThe type of life insurance coverage that is best for you or your family depends on your unique financial goals and circumstances. Generally, term life offers higher coverage amounts with low premiums. This is often the best type of insurance for those on a limited budget or those who need temporary life insurance coverage. Permanent life insurance is the preferred choice for those who are looking for long-term insurance policies or those who want an insurance policy that offers tax-deferred cash values. Did you know that you do not have to choose between the two different policies? You can use a combination of permanent insurance and term life insurance to develop a custom life insurance policy. We can help you decide the best type of coverage by using our Life Insurance Product Selector.

Homeowners Policy Deductibles

Homeowners Policy Deductibles

Does homeowners insurance have a deductible? If so, what are the standard deductible options?

Most homeowners insurance policies have deductibles. These deductibles cover losses of the dwelling, personal property, other structures on the property (garages, outbuildings) and any living expenses. These are covered in Section I on the insurance policy. Section II of the policy includes bodily injury, medical payments and property damage. The type of deductible and the amount of the deductible can vary by insurance company. Additionally, may insurance companies have hail, wind and flood riders that can be purchased. These have different deductible options. Finally, if you are looking to save on your annual premiums, a policy with a higher deductible ($500 to $1,000 or higher) will reduce the premium.

Types of Life Insurance

Types of Life Insurance

What Are The Different Kinds Of Permanent Life Insurance Policies?

Home Life Auto InsuranceThere are four distinct types of permanent life insurance policies. The most traditional type of permanent life insurance policy is whole life. With this coverage, the death benefit and the premium amounts are fixed. This means your payments and your coverage never change as you age. Additionally, with this policy, you will receive a guaranteed return rate on your cash values. It should be noted that this guaranteed rate of return relies on the ability of the insurance company to pay the claims.

The cash value of a universal life insurance policy is determined by an interest rate set forth by the insurer. The cash value of variable universal life and variable life is determined by the performance of investment options that you invest in. These amounts fluctuate based on the current market conditions. Both variable universal life and variable life are offered as an investment strategy; therefore, you should always request the most current copy of the strategy. This copy will contain information including the risks, charges, expenses and objectives of the investment.

The cash value of these two policies are not guaranteed; however, some policies do offer a minimum death benefit. With variable universal life and universal life policies, you can increase or reduce the death benefits and vary the frequency and cost of premiums, subject to the policies specific limitations. Don’t worry if you are having difficulty understanding the different types of policies. Simply click here to learn more about the different types of coverage available.Or, contact an insurance agent in your community who can explain the various life insurance options available to you.

Homeowners Insurance – Typical Exclusions

Homeowners Insurance – Typical Exclusions

What Is Typically Excluded From A Homeowners Insurance Policy?

Policy ExclusionsMost homeowners insurance policies do not cover animals, fish, birds, automobiles or business property. Additionally, most policies do not provide coverage for damage or loss caused by flood, water backing up through drains or sewers, surface water, nuclear damage, war, earth movement and more. Section II bodily harm, medical payments coverages do not apply to the ownership, use or operation of any aircraft, RVs, water crafts with a 50 hp or greater motor or automobiles on the property. To help you better understand your coverages, speak to an agent for a complete review of your property. There may be specific coverage limits on a variety of items, including but not limited to jewelry, guns, silverware, water crafts, securities or money.

Sotelo Insurance Questions and Answers

Sotelo Insurance Questions and Answers

Sotelo Aseguranza insuranceSotelo Insurance exists because many people have insurance questions and need answers. Especially if English isn’t your first language, this site is for you. We’re going to try to address the most common questions we get asked regularly from non-native residents of the US and non-English speakers, or those for whom English may be a second language. Primarily Hispanics and Spanish speaking Americans.

From car insurance coverage to homeowner deductibles, and more, Sotelo Insurance is your one-stop resource for all things insurance related.