So, you have questions about car insurance. Maybe your current policy is too high, you just bought a new car, or your teen just received their license. Perhaps you had damage to your car and you don’t know what is covered. Doing your own research can be a huge headache, let alone having to deal with online sites. Auto Insurance policies are complex, especially if you do not know the basics.
As an Independent Agent I represent many of the best insurance companies available. I can help navigate you and your family through all of the confusing information presented in Auto Insurance plans. Below, I have provided common questions and answers to help you understand auto insurance.
Q & A
Q: What kinds of questions should I be expected to answer when I’m applying for an insurance policy. Why do insurers need so much information?
A: When you apply for an insurance policy you will be asked a number of questions. For example, your name, age, gender, address, etc. for each driver in the household. You will also be asked a series of other questions which will be used to determine how likely you are to make a claim.
In addition to your age, gender and driving experience, information about the car you drive, and your driving record, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a compact car. Also, someone who commutes 30 miles each way is more likely to be in an accident, than someone who commutes via bus and only drives on weekends. In a nutshell, the more you drive, the higher the rate.
Q: I have an older car whose current market value is very low – do I really need to purchase car insurance?
A: Most states have insurance laws that require drivers to have at least some car liability insurance. These laws were enacted to ensure that victims of car accidents receive compensation, when their losses are caused by the actions of a negligent individual.
Often times the cost of repairing the damages to an older car is greater than it’s value. In these cases, your insurer will usually just “total” the car and give you a check for the car’s market value less the deductible.
Q: What is the difference between collision physical damage coverage and comprehensive physical damage coverage?
A: Collision is defined as losses you incur when your car collides into another car or object. For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage.
Comprehensive provides coverage for mostly other direct physical damage losses you could incur, including theft. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage.
This is also another name for “full coverage”
Q: What factors can affect the cost of my car insurance?
A: The type of car you drive, the purpose the car serves (i.e. business use, pleasure, or driving to work), your driving record, and where the car is garaged can all affect how much your car insurance will cost you.
Even your marital status can affect your cost of insurance. Statistics show that married couples tend to have fewer and less costly accidents than those who are single.