Car Insurance Questions & Answers
- What States Require Driver To Buy Liability Insurance?
The answer to this question is no. Not every single state requires a motorist to maintain liability insurance on their vehicles. However, most of them do. When purchasing car insurance, a motorist must consider how much car insurance they should purchase. Each state has its own individual and unique requirements when it comes to minimum insurance requirements. These financial responsibility laws vary widely. If you do not have liability insurance, then you must have the financial means to pay for any liability claims you may incur in an accident. There are two subsections to liability insurance; bodily injury liability and property damage liability. Bodily injury liability applies to medical bills and lost wages that another driver may incur in an accident for which you are at fault. Property damage liability works in the same manner, only it applies to damages the other motorist's car receives. If you drive a large truck or SUV that could potentially cause serious harm to another vehicle in an accident, you may want to give consideration to purchasing more than the required monetary amount of insurance.
There are twenty one states in the United States that require a motorist to show proof of liability insurance before they can register a vehicle. However, in other states, a driver must only furnish proof of insurance if he or she is involved in an accident or receives a citation or ticket. There are only five states in the country that do not require a motorist to maintain liability insurance. Even if you live in one of these states that does not require proof of liability insurance, you are still obligated by law to meet financial responsibility requirements. It is the responsibility of a motorist to educate themselves about what their state's minimum requirements are. New Hampshire and Wisconsin are the only two states in the country that do not have compulsory requirements for car insurance. By law, most motorists must carry liability insurance on each vehicle they own. If you drive a car with an outstanding balance on it, then you will be required to maintain collision and comprehensive insurance in addition to the liability insurance.
- What Is The Difference Between Fault and No Fault Insurance?
The traffic laws that govern a particular state will be used to determine who is considered to be responsible for the accident. Approximately half of the states in the United States subscribe to a no fault policy when it comes to motorists and automobile accidents. Under the tenants of this system, no one particular motorist is considered to be solely responsible for the accident. As a result of this policy, each individual's car insurance company is responsible for the property damage and bodily injury claims of their own motorist. The aim of this system is to reduce the number of lawsuits seen in their courtrooms because liability in the accident has not been established. If you frequently travel through at fault states, then it may be wise to inquire with your insurance company about additional coverage in the event that you are involved in accident in the at fault state. This will ensure that you have adequate insurance coverage no matter where you are.
There are a handful of states that have no fault policies with established thresholds. A threshold simply sets a minimum monetary amount of insurance coverage that a motorist must have. Any additional monetary amounts of insurance are purchased at the discretion of the motorist. However, it is prudent to take into account the make and model of the vehicle you drive when making this decision. The size of your vehicle can affect how much damage it could potentially cause another car. In an at fault state, the individual who causes the accident is responsible for the payment of all claims o f damages by every party involved in the accident. One of the downsides of this system is that the at fault state's courtrooms are often called upon to make the determination of who was at fault in the accident and who must pay what claims. This process can be tedious, time consuming, and expensive for all involved. Despite which system the state of your residence subscribes to, each motorist is responsible for meeting their state's minimum financial responsibility laws.
- How can I Reduce the Cost of my Collision Coverage?
There are two approaches that an individual can take when it comes to reducing the cost of their vehicle's collision coverage. The first approach involves raising the deductible on your insurance policy. Typically, the higher your deductible is, the lower your monthly premiums will be. However, if you choose to employ this route, it is vital that you have the amount of your deductible within easy access in case you are involved in an accident. If you do not pay your deductible, your insurance company will not proceed to pay for the repairs on your car to begin. According to the Insurance Information Institute, if you raise your insurance policy's deductible to $1,000.00 or more, you could save up to 45% on your monthly collision insurance premiums.
The second approach to saving money on the cost of collision coverage is to drop your coverage altogether. It is important to note that if you own a car with an outstanding balance on it, you will be required by law to maintain this coverage until the balance has been paid off. If you own an older vehicle, it may not be the most financially feasible alternative to maintain collision insurance on it. Collision insurance covers the cost of repairs to your vehicle in an accident in which you are at fault. However, if the costs of the repairs exceed the current market value of the vehicle, an insurance company will most likely elect to total the car. When a car is totaled by an insurance company, your insurance company will pay you the current market value of the vehicle, minus the cost of your deductible. Because a car depreciates over time, this may not be the soundest financial decision.
It is also important to remember that there are actually a wide variety of factors that figure into the total cost of your insurance rates, such as age. It is a commonly known fact that after the age of 24, a person's car insurance rates will drop. Investigating alternative influences on your premiums can also save you money in the long run.
- What Is An SR-22?
An SR-22 is not a form of insurance. It is the name of a specific form that is issued by automobile insurance companies in particular cases. The document provides proof that a motorist in question meets the state's minimum financial obligation laws for car insurance. Generally, a motorist will be required to furnish proof of an SR-22 is they have previously been convicted of an offense for failing to maintain the required amounts of vehicle insurance. However, there are a variety of reasons that may cause a driver to be required to furnish this form. These reasons include a conviction of driving under the influence, a repeated history of moving violations, being named as a habitual traffic offender, or contributing to the cause of an accident while uninsured. Despite the cause of why you must carry an SR-22, most states will require that a motorist maintain this proof of insurance for a minimum of three years. Automobile insurance policies that have an SR-22 lien attached to them are going to be considerably more expensive than standard insurance policies. Ideally, it is prudent on the behalf of a motorist to avoid placing themselves in situations in which an SR-22 lien could be placed upon their driving privileges.
If, for any reason, the automobile insurance policy that your SR-22 is attached to lapses, your insurance company is required by law to furnish an SR26 Filing to the state of your residence. This form notifies your state's Department of Motor Vehicles that you are not in compliance with the automobile insurance laws of your state. Your state of residence will then suspend your driving privileges until the situation is remedied, you will then have to repeat the process of finding an insurance company who is willing to issue an SR-22 filing on your behalf. Upon the completion of this task, you will then be allowed to have your license reinstated. The filing of an SR-22 form allows for a motorist's license to be reinstated after it has been suspended if it is produced within 30 days of the SR-22 filing being issued by the state.
- Will Every Claim I Make Increase My Insurance Premiums Or Only Certain Claims?
Ultimately, no. Each claim that you file under your automobile insurance policy's coverage will not necessarily result in higher insurance premiums for you. There are a wide variety of reasons why motorists file claims under their insurance policies. The most common reasons include damage to your vehicle or that of another party's in the event of an accident, medical claims for either part, or other damages that your vehicle may incur that are not the result of an accident. For example, if your vehicle's windshield has a crack in it, you must file a claim with your insurance company before the damage can be repaired. Small claims, such as these, will most likely not produce a negative effect on your monthly insurance premiums. If a motorist repeatedly files claims in excess of $1,000.00 annually, your insurance premiums are guaranteed to rise. An automobile insurance company views a high history of claims as an indicator of poor driving habits.
An automobile insurance company quotes different rates to each motorist. This is because your insurance premiums are based upon the amount of risk the insurance company believes you impose to them. Each time a claim or an automobile accident occurs, insurance agents gather information about the vehicles and the drivers involved in the crash, such as ages, gender, or make and model of the car. When you answer these questions on an automobile insurance application, your answers are compared to the national claims rate average for those who share your same characteristics. From this database, your insurance company formulates an opinion about how likely you are to potentially pose a financial loss to them in the future. Your insurance premiums are then adjusted accordingly. Certain factors, such as age, that influence your car insurance premiums are beyond your control. However, if you have the financial means to pay for minor damage to your vehicle yourself, it may be more prudent to simply pay for the expenses out of pocket. An insurance company is also going to take into effect your claims history when determining what your premiums will be.
- What Is Tort Liability?
Essentially defined, tort liability is a branch of law that is concerned with providing remedies for injurious wrongs that do not result from a contractual obligation. An example of tort liability would be an individual who receives financial compensation from another individual who is responsible for these injuries the first party received in some form or fashion. In the automobile insurance world, tort liability is primarily concerned with establishing who is at fault in an automobile accident so that the motorists' insurance companies will know who recrimination needs to be made too. The laws concerning tort liability in the automobile world vary sharply from state to state, and it is the responsibility of a motorist to familiarize themselves with these laws in order to ascertain whether or not they are maintaining adequate monetary amounts of vehicle insurance. There are two primary systems that are used when it comes to dealing with tort liability in the automobile insurance industry, and the insurance requirements for each one are different.
The majority of states within the United States employ a fault based, or tort liability, system when it comes to determining who is at fault in an automobile accident. Under the tenements of such a system, your insurance company is only required to make monetary restitution to another motorist based upon your degree of fault in the accident. Often times, in such situations, there are wide variety of opinions as to who is at fault, and to what degree, when it comes to an accident. This has led to many costly courtroom battles between motorists and insurance companies. Therefore, more and more states are adopting a no fault system when it comes to dealing with automobile accidents. Under the tenements of this system, no one particular motorist is considered to be at fault in an accident. Each party shares an equal amount of blame. An insurance company is responsible for paying only for the medical bills, lost wages, and vehicle repair costs of their party. However, the injured party in an accident is unable to sue another party for any further damages that are incurred.
- Who Needs Gap Insurance?
Before you can determine whether or not you need gap insurance, you must first understand what it is. Gap insurance is intended to cover the difference between what your automobile insurance company believes your car is worth and the amount of money that you owe the finance company for the loan taken out on your automobile. If you are purchasing a used vehicle, it may not be the most feasible financial decision to purchase gap insurance for your vehicle. Gap insurance is generally applied only to new vehicle purchases or to vehicles that are lease. The rapid rate of depreciation on an automobile will drop sharply after the car's first year of ownership. Gap insurance is ideal if you have purchased a vehicle without placing a down payment for it. This practice is typically not recommended. However, it does occur. For the initial period of the vehicle's ownership, you will owe more money that what the car is actually worth. Typically, after about three years, this gap will narrow, and the necessity for gap insurance will decrease.
When determining whether or not you should purchase gap insurance, there are three items to keep in mind. The first item is that you do not need to possess gap insurance for extended periods of time if the vehicle is to be financed. The time period in which the necessity of gap insurance is required will be dependent upon the terms and conditions of your loan. The second item to bear in mind is to watch out for your deductible. If your gap insurance policy has an astronomically high deductible, then the purpose of the insurance policy is negated. The third item to bear in mind before purchasing gap insurance is to ascertain whether or not the difference in your vehicle's worth and the amount of money owed on the car is not already covered by your existing insurance policy. A motorist should also bear in mind, that in most cases, a motorist who leases a vehicle will be required to maintain gap insurance on the vehicle for the length of the lease agreement.
- Can My Insurance Company Cancel My Policy After I Purchase It?
It is entirely possible that your automobile insurance company may cancel your insurance policy after you have purchased it. A motorist is not entitled to coverage from their insurance provider, and it is important for an individual to consider the nature of their insurance contract in order to protect themselves from the possibility of its termination. The purchase of an insurance policy is simply a contract. Your insurance company is providing service for a fee. This type of mutual agreement allows both parties involved to retain the right to terminate the contract on notice and without reason. The reasons an insurance company would cancel your insurance coverage can vary widely. Typically, the most common reason for the cancellation of insurance coverage is due to nonpayment of one's insurance premiums. Typically, once a motorist becomes more than 30 days behind in the payment of their premiums, their coverage will be canceled. Another common cause of cancellation for individual motorists is a significantly increased risk of financial loss to an insurance provider. An insurance company may elect to cancel the coverage it provides to a business or other type of client due to business reasons.
An automobile insurance company has a legal responsibility to investigate and determine the validity of accident claims. This can be a difficult task to perform. If a client is found to be falsely filing dubious claims with their insurance provider, the insurance company retains the right to cancel it services. If the insurance company cannot prove that the insuree's claims are false, then the insurance company will elect to cancel their coverage when the risk is beyond the insurance company's control. Should any of the aforementioned scenarios occur to you, as a motorist, you should be prepared to have a backup plan for coverage ready. The penalties for driving without vehicle insurance are quite stiff. If you are found to be driving without insurance and are the cause of a motor vehicle accident, you are opening yourself of to the loss of your driving privileges, costly fines and lawsuits, and potential jail time.
- Can Other People Drive My Car And Be Covered?
The answer to this question is yes. However, the coverage that is extended to another motorist who operates your vehicle is limited. Any drivers who routinely use any of your vehicles are required, by law, to be listed on your automobile's insurance policy. However, if you allow a friend to drive your car for a day or two, he or she will be covered by most insurance policies. Each insurance company has differing regulations and rules when it comes to other motorists operating your vehicles. Typically, automobile insurance coverage is designed to protect the vehicle first and the motorist secondarily. More simply put, if you were involved in an accident driving a friend's car, the insurance company that is employed by the owner of the vehicle would be the primary insurance company to pay the claim. If the coverage of the vehicle owner's insurance policy was not adequate to cover all of the costs incurred in the accident, then the insurance of the driver would pick up the deficient.
As aforementioned, most insurance policies coverage limits will extend to other motorists who have your permission to borrow your vehicle. The forms of insurance, such as collision or liability, are the primary source of coverage for the vehicle. Before you allow a friend to borrow your car, it would be prudent to contact your insurance provider just to ascertain that there are no potentially disastrous exclusions on your insurance policy. If you happen to be pulled over by a police officer while driving a friend's vehicle, there should be no reason for trouble if you can provide the police officer with the vehicle's registration and proof of insurance coverage and any other additional documentation that may be requested of you. If you have a friend whose license or driving privileges have been revoked for any reason, do not, under any circumstances, allow them to get behind the wheel of your vehicle. If such a motorist were involved in an accident, your insurance coverage will not pay for a dime of the financial expenses incurred. You could also, potentially, open yourself up to the possibility of being criminally responsible for any injuries another party receives.
InsureWish.com: Get the lowest rates on car insurance and save hundreds by comparing multiple car insurance quotes from America's Leading Insurance providers.
- Does My Policy Provide Coverage When I Rent A Car?
When it comes to obtaining car insurance for a rental car, a motorist generally has two options. The first option involves adding a rider to your own insurance policy, and the second option involves purchase insurance coverage through the rental agency. Your first step should be to contact your insurance agent to see if your existing insurance policy's coverage extends to rental vehicles. Your next step will be to contact your credit card company. Surprisingly, numerous credit card companies offer the option of rental car insurance when you charge the expense of a rental car to your credit card. So which option should a motorist choose? If you have your own automobile insurance policy, including collision coverage, it may cover damage to that a rental car would incur in an accident. You will, however, be required to pay a deductible for any repairs to commence on a rental vehicle, just as you would your own. If a rental vehicle is covered by your own insurance policy, then the liability portion of your car insurance will function as it normally would.
A rental car company will offer a customer various forms of insurance coverage and waivers that supposedly widen the scope of your insurance coverage and help to alleviate the responsibilities of a rental that is totaled in an accident. The loss damage waiver is the most common waiver that a rental car company will offer to you. Under the tenements of this form, you are relieved from any responsibilities if your rental car is destroyed or wrecked. With some forms of loss damage waivers, you will be required to pay a deductible, as you would with your own insurance. However, it is important to be aware of the situations and scenarios in which your coverage may become void. For example, a rental car company insurance policy may have its coverage negated if you crashed one of their vehicles due to speeding. Other typical insurance options from car rental companies include additional liability supplements, accidental death and personal property insurance, and personal effects coverage. The intricacies of a rental car company's insurance coverage can be confusing. In most instances, you will be adequately protected if you simply stick with your own insurance coverage.
- What Does Underinsured Motorist Coverage Cover?
Underinsured motorist coverage is designed to provide monetary coverage to pay for expenses that you or your passengers may incur in accident in which the at fault driver is uninsured or underinsured. An uninsured motorist is defined as one who does not meet their state of residence's minimum financial responsibility laws. The definition of an underinsured may also apply if the motorist at fault's insurance claim was denied by their insurance carrier or if he or she is unable to pay for the damages incurred out of pocket. An incidence that involves a hit and run driver is also included under the definition of an uninsured motorist. Underinsured and uninsured motorist coverages are considered to be separate entities. However, with most insurance companies, these two forms of coverage can be purchased in bulk, together.
Your state of residence will determine whether you are required by law to maintain uninsured or underinsured motorist coverage. The monetary amounts of this coverage that you are required to have must meet your state's minimum requirements. However, they must not exceed the monetary limits of your liability coverage. A motorist should bear in mind that if you are in an accident and attempt to negotiate a payment for damages or settlement by yourself, you will be ineligible to file a claim under your uninsured or underinsured motorist coverage. It is always ideal for you to contact your insurance company on how to handle an accident before any attempt at negotiation is made in an accident.
The premise of underinsured or uninsured motorist coverage may seem somewhat off kilter due to the fact that most insurance policies already include collision insurance for the vehicle in question. However, for motorists who do not maintain collision coverage on vehicles they own outright, this form of coverage is an ideal form of protection against irresponsible motorists without raising their own insurance premiums. Furthermore, the low deductibles that are associated with this kind of protection are frequently cheaper on a monthly basis than collision coverage with the same deductible amount. Additionally, the uninsured motorist bodily injury portion of this type of coverage will cover an individual who may be struck by a vehicle while walking as a pedestrian.
InsureWish.com: Get the lowest rates on car insurance and save hundreds by comparing multiple car insurance quotes from the America's Leading Insurance Providers.
- Can I buy Car Insurance Online
You can compare auto insurance quotes and buy your car insurance policy online instantly
- Will I be covered right away if I buy car insurance online
Yes, as long as you pay for your policy online with debit or credit card.
Auto Insurance Providers
