Did You Know?

Over 1,000,000 people suffer whiplash injury in the U.S. every year and almost a quarter of these patients will suffer from chronic pain and disability

Top 10 Most Frequently Asked Questions About Auto Insurance

Question 1: What factors really determine my auto insurance costs?

• A clean driving record with no tickets or accidents will lower your auto insurance costs and conversely, any tickets or accidents on your driving record will increase your cost of insurance.
• Age, sex, marital status can have a big effect on your auto insurance rates. The insurance industry relies on statistical information showing the accident rate of classes of individuals. For example, a young unmarried male driver is more likely to have an accident than a middle aged, married man, so the rates charged each class of drivers reflect that statistical difference.
• Driving distances determine rates charged because the more you drive, the more likely you are to have an accident. If you drive more than 25,000 miles a year, live in a heavily populated area, then your insurance will cost more than for a comparable driver living in a rural area who drives less.
• A luxury vehicle or performance vehicle will cost more to insure because they are more expensive to repair, are more likely to be stolen and because parts cost more. Economy cars are less costly to insure because they are cost less to repair, are less likely to be stolen and have a lower cost for replacement parts.
• Insurance policies with high coverage limits will cost more because they cost more to compensate claims. You can lower your premiums by increasing your deductibles on comprehensive and collision coverage.
• Credit history - Some states may use your credit as a factor in determining your rates. If you have excellent credit, you might pay less.

Question 2 : How can I lower my auto insurance rates?

Shop for the best rates while making sure the rates you're comparing are for the same coverage. When you buy any car, whether it is new or used, review your policy and compare rates for auto insurance from multiple insurers. Maintain a good credit record, since this sometimes is considered in determining your premiums, and consider purchasing a class of car that has lower rates of theft and accidents. Consider insuring your auto with the same company that holds your other insurance policies, such as your homeowners and life insurance. Many auto insurance companies have lower "multiple car" rates if you insure all your vehicles with them.

Question 3 : What kinds of rate discounts are available?

Question 4 : What is the difference between Property Damage and Physical Damage?

Property damage coverage is for the damage you cause to another car or property (such as a mailbox, fence or other property). There is no deductible for property damage. Physical damage are the comprehensive and collision parts of your policy that pay for repairs to damage of your car . Collision covers damage from your car colliding with another car or any other objects. Comprehensive covers damage from fire, theft, vandalism and weather. Comprehensive and collision usually have separate deductible amounts.

Question 5 : What do I do when I have an auto accident?

Call 911 if there are any serious injuries requiring medical attention. Call the police department and they will say whether you should move cars, and if an officer will need to take statements from you or anyone else involved in an accident. If police are not called, get everyone involved, including possible witnesses, to provide names, addresses, phone numbers, as well as insurance company . Contact your insurance company as soon as possible to ask them what actions you should take.

Question 6 : I'll be buying a new car soon. What insurance coverage do I need before I can drive it home?

Your new car must be insured before you drive it anywhere, including the drive home from the dealership. If you have an existing car insured under most auto insurance policies, the new car should be automatically covered for 30 days in most cases. If you are financing your car, you are required by most lenders to purchase comprehensive and collision coverage.

Question 7 : I have an old car with very low current value - must I get it insured?

Consider the following points if you decide not to fully insure your car:

•   Always get bodily injury and property damage (liability) In most states you're legally required to carry a minimum amount of liability insurance.
•   Comprehensive and collision are not required in all states, unless the vehicle is financed or leased.
•   Consider whether you could afford to replace the car it if it were totaled. If your car is damaged, how much could you afford to spend to repair it?
•   Rental reimbursement coverage pays for a replacement car or other transportation until your car is repaired and is a part of "comprehensive".

Question 8 : If I allow a friend to borrow my car temporarily, are they covered under my insurance?

Most auto insurance policies cover other drivers who have been given permission to use your car, but be sure to check your policy to see if it allows for drivers other than the named insured. Your policy should spell this out clearly, but if you need help finding this information in your policy, ask your insurance agent.

Question 9 : Why does my auto insurance rate go up if I have an accident or get a ticket?

Claims statistics show that accident rates increase proportionate to the number of traffic tickets and auto accidents a driver currently has. Insurance companies will always adjust their premiums to reflect the exposure to claims at this higher risk.

Question 10 : What does my auto insurance policy cover when I rent a car?

It depends on your policy. The best thing is to review your policy, or ask your insurance agent to review it with you. Your policy may cover autos rented for pleasure, like vacations or special events, but not business. If you do not have comprehensive and collision coverage (often referred to as "physical damage coverage") for your own car, you may not have coverage for a rental car. And if you damage a rental car, your policy may not cover lost revenue the rental car company incurs while the rental car is being fixed; or the cost of a new car if you total the rental.

CONTACT AN AUTO INSURANCE AGENT IN YOUR AREA FOR A FREE QUOTE

If you are in need of auto insurance or are just looking to compare rates with other auto insurance companies in your state, use our Free Online Consultation Form and an insurance agent in your area will get back to you within 24 hours.

IF YOU'VE BEEN INJURED IN AN ACCIDENT - CONTACT AN ATTORNEY

If you are in need of legal advice or services, or simply wish to speak to an attorney who has successfully handled auto accident cases in your state, you may use our Free Online Consultation Form.

There is NO COST or obligation for this service.