Automotive Insurance Information And FAQ’s

Why You Should Buy Automotive Insurance

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Reader’s Question:

I just got a new car. I loaned some money from the bank to purchase my first car. I don’t know a lot of stuff about car insurance. I got one simple question now – why should I buy automotive insurance?

Carmine

Chicago, IL

Congratulations on your new car!

Since you’ve mentioned that you’ve borrowed some money from the bank just to buy your car then your question is very timely..

Let’s just take this scenario as an example. Let’s say you borrowed $20,000 from the bank to purchase your car. Given the situation that you are driving without car insurance so let’s say while driving you’ve met an accident and it was your fault. With no car insurance to pay for the damages to the other party involved and no money to finance the repair of your car, who would you turn to? I doubt if the bank will ever lend you some money. If you have automotive insurance, then you don’t have to worry about this anymore.

Moreover, automotive insurance also gives you the protection not only from accident with people who have car insurance but most especially to people who do not have car insurance policy. The road is never safe with uninsured motorists, so you need to be ready at all times.

In addition, getting automotive insurance protects your from financial burden that might result when you get involved in a car accident. Depending on your limits, there is a certain amount that your car insurance company will pay when you are in that situation. With no car insurance, you will have to pay everything from your own pockets.

Go find a vehicle insurance now to be able to drive around feeling more secured. Enjoy driving your first car!

 

Where to Look for Automotive Insurance Quotes

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Reader’s Question:

I need automotive insurance quotes for my new car. Where do I find them?

Suzy

Newark, NJ

Getting hold of automotive insurance quotes is quite tedious, especially if you want to get a quote from each insurance company in your state. But if you have enough time and money, you can do away with this task. All you need to do is to contact an automotive insurance broker, and he will surely do the hard work for you. Auto insurance brokers are connected to a lot of insurance companies–that’s why it’s easy for them to give options as to which company would best suit your needs. Just give them your preferred automotive insurance coverage (have them discuss this topic to you in case you’re not familiar with coverage) and your budget, and they will be the ones to look for the best automotive insurance policy for you.

However, if you’re not satisfied with what the broker has offered, you can always do the search yourself. You can try checking the internet to see which local companies give the best rate. Almost all automotive insurance companies have their own websites, so it should be easy for you to get a quote from them. From their Web sites, you should also be able to see what discounts or promos they are offering at the moment. See which one could offer you the best package to make sure that you end up with a policy that has the best price and coverage that you need.

Things To Know About Automotive Insurance

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Reader’s Question:

I get confused everytime I try to get some information about automotive insurance since I plan to buy a new car here in New Jersey. Do you have any advice for me to understand the confusing things about auto insurance?

Derek

Elizabeth, NJ

Understanding the fine points of automotive insurance could be so difficult and confounding. Here are the things that can be useful to understand some of the more complex things about automotive insurance:

–You should decide on which coverage for automotive insurance is suitable for you. For the most part, your automotive insurance bill would be for liability and something in relation to the vehicle use as well as your driving history. You could manage the other part of your automotive insurance premium that would be for damage or loss, collision and comprehensive coverage.

–There are a lot of automotive insurance companies in New Jersey so it’s likely that you would pay less by getting automotive insurance quotes from various insurance carriers. It’s worth it to shop around, especially of you think that you are paying high automotive insurance premiums.

–A number of automotive insurance providers offer different kinds of discounts such as multiple-line discount. You can also ask for some other discounts such as good driver discount, military discount, multiple-car discount, discount for installing safety equipment in your vehicle, etc.

–Think about getting higher deductible since you could lessen your automotive insurance premium by doing this. However, be certain that you can pay the higher deductible you agree with one you file a claim.

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Lending Car Causes Increase in Automotive Insurance Quotes

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Reader’s Question:

My rates have been much higher after my friend got into an accident while using my car. Where can I get the cheapest automotive insurance quotes?

Tony

Chicago, IL

Lending your car may not be a very good practice especially if it is going to be in the hands of an uninsured driver even if he is your friend. Say he gets into an accident and causes considerable damage. The insurance that kicks in to pay for liability will be yours. And this will be put against your automotive insurance record even if the accident was really not your fault. Unless, of course, you are able to provide proof that the car was taken by your friend without your permission, then you will just have to face up to the fact of paying such high premiums. It is the automotive insurance standard that rates be increased up to 40% if the policyholder’s record involves a first-time claim. While there may be automotive insurance companies willing to forgive that first road accident, most insurers do not, and one that does is quite uncommon.

If you are thinking of shifting to a different provider, then there are several ways to look for the cheapest automotive insurance quotes. The most time-saving method would be to search the Internet. There are a lot of insurance websites out there that can quickly present you with automotive insurance quotes as soon as you complete and submit their online forms. You can easily list down the several automotive insurance quotes you’ll get from your search and quickly see which companies provide the cheapest rates.

 

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Automotive Insurance Law

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Reader’s Question:

I’m only learning how to drive so I’ve only got a learner’s permit. I actually just got it today. Is it some kind of a violation for me not to purchase coverage from an automotive insurance company? What are the rules in New York?

Vincent

Babylon, NY

It’s not a violation, Vincent. In fact, I think you can’t purchase coverage from an automotive insurance company with only a learner’s permit. Of course, we’re only talking about New York. Go to another state and the rules would change altogether. So if you’re thinking of only using the car within New York then the best thing to do is to be listed as one of the drivers of the family. I assume your parents have automotive insurance coverage for the car that you are using. In that case, they are required to notify the insurer of there is a new driver in the family, even though he or she is just a learner. If you plan to drive out of state, I think you need to have a licensed driver on your passenger seat. He or she should be over 21 years old. Just to be on the safe side (automotive insurance is confusing business), research the regulations of the state you want to visit.

By the way, now that you’re learning how to drive, it would also be a good idea to take an actual driving course and strive to get good marks. I’m sure your parents would agree. This would save you guys some money on automotive insurance premium.

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Auto Insurance For First Time Buyer

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Reader’s Question:

Being a first time buyer of auto insurance, I don’t really know the ins and outs of the business. What are the things that I have to decide on when buying my auto insurance here in Indiana?

Derek

South Bend, IN

There are a lot of things that you have to decide on when you are buying auto insurance in Indiana for the first time. First, you need to make a decision on the type of coverage that fits you and your car. This means that you may just get liability coverage for your auto insurance which will pay for the injuries and damages you cause to other people as well as other properties. You may also opt to have full coverage for your auto insurance which includes benefits such as roadside assistance, towing, uninsured/underinsured motorist coverage, etc.

If you already know the type of coverage you want for your auto insurance, you have to shop around for different quotes. You could get a lot of quotes for your auto insurance from comparison websites which would allow you to submit your information just once and then you will get quotes from different insurers for you to compare. As a first time buyer for auto insurance, be reminded that you need to consider the way you drive your vehicle and your budget. Be sure that you don’t have a lot of points on your driver’s licence if you want to pay less for your auto insurance. You will also encounter some insurers that are aggressive in selling you auto insurance, but don’t get scared. If they are forcing you to add coverage on your auto insurance plan other than those you have already chosen, just tell them it doesn’t go well with what you’ve expected to have on your plan.

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Washington Automotive Insurance Coverage

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Reader’s Question:

How much automotive insurance coverage should a motorist get in the state of Washington?

Wally

Seattle, WA

Financial accountability laws in the state of Washington dictate that every resident motorist must have the capacity to offer monetary compensation to the injured party for any bodily harm or property damage he or she may cause in an accident. This is the underlying rule that makes liability automotive insurance a requirement in this state. Unforeseen mishaps such as road accidents tend to be expensive and therefore disruptive to one’s financial stability. With this policy in hand a driver would not have to worry about losing his or her personal material assets.

The state of Washington will hold liable a motorist guilty of causing an accident for at least twenty five thousand dollars worth of medical expenses for the other motorist. If there were more than two injured parties, a total of fifty thousand dollars of combined medical expenses for all occupants will be due. As recompense for property damage which may include but is not limited to the victim’s automobile, ten thousand dollars will be owed by the guilty motorist to the injured party. Remember these amounts when purchasing Washington automotive insurance. They are the minimum liability coverage every motorist should have. Buying anything less would make a motorist underinsured.

Another type of automotive insurance which is not required but highly advisable to acquire is comprehensive coverage. While liability covers the other motorist’s injuries and property damage, comprehensive insurance in the meantime pays for the damages to your own property and that includes necessary repairs to your automobile.
Your insurer will carry the repair costs up until the Blue Book value of your automobile. Exceeding that, your insurer will pay you the total cash value of your automobile instead.

A readily available source of information for Washington automotive insurance matters is the state’s insurance regulator, the Office of the Insurance Commissioner. Don’t hesitate to contact this agency or visit its website to get more details and familiarize yourself with the ins and outs of automotive insurance in this state.

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Why Automotive Insurance Companies Conduct Risk Assessments

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Reader’s Question:

Why do automotive insurance companies conduct annual risk assessments? What effect does it have on my premiums?

Bridget

Nashville, TN

Basically, automotive insurance companies conduct annual risk assessment for them to determine your premiums based on calculated risk. Annual risk assessment is a point system used to gauge if have you been a good driver, or whether you have
had charges brought against you, moving violations, reprimands, usage, miles covered, etc., etc. This would be the insurance carriers’ basis for setting your current premiums. If your rating is high based on the calculated risk, these automotive insurance companies will most likely charge you higher premiums. You have to remember that the higher the risk, the higher your premiums get.

Depending on jurisdiction, your premiums can either be authorized by state laws or determined by your carrier. More often than not, your automotive insurance company determines your monthly premiums and has more freedom to set the actual coverage that you are going to get. With these auto insurance companies, setting the premiums vary, depending mostly on the factors that could affect the cost of future claims. Therefore, your risk for accidents, citations, etc., would, in this case, translate to higher probability of repair or damage cost, penalties, fines, and higher probability for benefit claims. Insurance companies use this as a standard on which to base their clients’ premium rates, and it would definitely help if you could make sure not to be a “high risk driver.”

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