- What is auto insurance?
- Am I required to purchase auto insurance if I own a vehicle?
- What is the main reason for requiring auto insurance?
- Will I be covered by my insurance company if I am sued?
- What are the main types of auto insurance?
- What is comprehensive coverage?
- What is collision coverage?
- What is liability coverage?
- How do I know the minimum amount of liability insurance required?
- What kind of optional coverage can I choose?
- Am I required to pay a minimum amount of comprehensive or collision coverage?
- Do I have to purchase auto insurance if I lease a car?
- What is a premium?
- What is a deductible?
- Can my insurance company cancel my auto policy?
- What should I do if feel my insurance company has cancelled my policy unfairly?
- What should I do if I don’t receive a satisfactory response about the unfair cancellation of my policy from the consumer affairs division?
- If I contact my insurance company to verify whether a loss is covered under my policy, can they record this as a claim, even if I don’t receive any money from the insurer?
- What should I do if I have an accident with an uninsured motorist?
- What will uninsured motorist coverage cover?
- Will other people be covered if they drive my car?
- Why do I have to list all household members, even if they don’t ever drive my car?
- Which individuals are considered family members?
- Which household members don’t need to be included on my policy?
- Will I be covered by my auto policy if I rent a car?
- Will my spouse’s or children’s accident records affect my ability to purchase car insurance?
- Can my company refuse to renew my policy if I have too many claims?
- What happens if I forget to include some information on my driving record?
- What does actual cash value mean?
- What does replacement cost coverage mean?
- What factors affect my auto insurance rates?
- How do companies determine auto insurance rates?
- Why are the rates so different for different insurance providers?
- Will my policy automatically increase after I file a claim?
- What is considered a high-risk driver?
- Can my insurance provider cancel my policy if I am a high-risk driver?
- Will I lose my safe driving discount if I file a claim?
- Do I have to file a police report if my vehicle is stolen?
- Do I have to file a state motor vehicle report?
- Will my insurance provider investigate any cases of potential fraud?
- What is no-fault insurance?
- What is medical payments coverage?
- What is bodily injury liability coverage?
- What is personal injury protection?
- What is uninsured/underinsured motorist coverage?
- How long will my claim take to process?
- How long will it take to recover my deductible?
- Will any property stolen from my vehicle be covered in my policy?
- What should I do if my stolen vehicle is recovered?
- What should I do if my vehicle is totaled?
- Who will pay the remainder of my loan if my vehicle is totaled?
- Who is responsible for any lost wages if I can’t continue working?
- What happens if I am involved in an accident in another state?
- Will my policy cover the cost of renting a vehicle while my vehicle is being repaired?
- How do I know which representative will handle my claim?
- Can I purchase auto insurance if I have a learner’s permit?
- Can I purchase auto insurance if I have a foreign or conditional license?
- How will I know the actual salvage value if my car is totaled?
- What are the most inexpensive cars to insure?
- How can I find the insurance records for the previous owner of a car?
- How much will the cheapest car insurance cost?
- Will my insurance cover the cost to replace a cloudy and pitted windshield if I purchased complete glass coverage?
- How does an insurance company define a sports car?
- What happens to my auto insurance if I am charged with a DUI offence?
- Does my auto insurance policy have to contain the same name as my car loan?
- Which states are no-fault states?
- Can I insure another person’s car?
- Will my auto insurance cover my relatives who have international driver’s permits?
- Who is responsible for a mistake on my insurance forms?
- How can I lower my insurance premiums?
- What is a declarations page?
- Why do I have a harder time obtaining auto insurance if drivers in my household have a bad driving record?
- What will happen to me if I choose to drive without car insurance?
- What is a high risk driver?
- What does assigned risk mean?
- What does an assessable policy mean?
- Am I eligible for any kind of discount on my insurance policy?
- Will I be charged more if I choose to pay my premiums on a quarterly or monthly basis?
- What is split-limit liability car coverage?
- What is single-limit liability car coverage?
- Should I bother purchasing collision coverage if I own an older vehicle?
- If I am involved in an auto accident as a pedestrian, will bodily injury liability still apply?
- What happens if I am involved in an accident while I’m driving someone else’s car?
- Will my auto insurance policy cover a rental truck that I use to move my personal property?
- What is gap insurance?
- Will my auto insurance policy cover me if I use my car in a car pool?
- Will my auto insurance policy be valid if I drive in Canada?
- Will my auto insurance policy be valid if I drive in Mexico?
- Will I receive a refund if my policy is cancelled?
- Does my insurance company have to advise me why they have cancelled or refused to renew my policy?
- Can my insurance company cancel my policy in the middle of a term?
- Can my insurance company perform a credit check on me?
- What is depreciation?
- Will the amount of depreciation of my vehicle affect my coverage?
- If I am involved in an accident with a driver who has out-of-state insurance, where do I file a claim?
- What is the minimum number of estimates required by an insurance company?
- What should I do if my company adjuster misses some information on my repair estimate?
- What is the responsibility of my insurance agent in the claims process?
- Will I receive a grace period for payment of my premium?
Drivers purchase auto insurance for vehicles such as trucks or cars to protect them from losses that may occur when they are driving them.
If you drive a vehicle in the USA or Canada, you are legally required to purchase auto insurance.
Auto insurance provides drivers with peace of mind, as well as financial security if they are ever involved in an accident.
Your insurance company will cover you up to the amount specified in your liability insurance if you or another individual driving your car ends up injuring someone or causing property damage.
The three main kinds of auto insurance include comprehensive coverage, collision coverage and liability coverage.
This type of insurance covers any damages to your car that are not caused by other drivers such as fire, storms, floods, hail, theft, collision with an animal or vandalism.
This type of insurance covers any physical damage to your vehicle that occurs as a result of a collision including hitting another vehicle or an object such as a light post.
A minimum amount of liability insurance is required in almost every state, and it differs according to where you live. Drivers are required to purchase this type of insurance to cover any losses you might cause to an individual or to someone’s property.
Although all drivers require a minimum amount of liability insurance, the amount varies from state to state. Therefore, you need to contact your insurance provider to find out the exact amount in your area.
There are many options above your minimum required policy. These include collision insurance, family protection coverage, transportation replacement, etc.
No, since the only type of insurance that is required is liability, there is no minimum required for comprehensive or collision coverage.
Yes, you will be required to purchase liability insurance if you lease a car. Your bank or auto dealer will also require that you purchase collision and comprehensive coverage.
The yearly fee that you have to pay your insurance provider is called a premium.
A deductible is the partial amount of a loss you have to pay before your insurance company is responsible for paying any claim filed under your policy. For example, if your covered claim is $4000 and your deductible is $1000, you will pay $1000 and your insurance provider will pay the remaining $3000.
Yes, if you fail to pay your premium or if your license has been revoked or suspended during the term of the policy, your company can cancel your policy.
If your insurance provider never provided a reason for the cancellation or you disagree with the reasons indicated, you should contact the consumer affairs division of your insurance company.
What should I do if I don’t receive a satisfactory response about the unfair cancellation of my policy from the consumer affairs division?
In this case, we suggest you contact your state insurance department to discuss the issue.
If I contact my insurance company to verify whether a loss is covered under my policy, can they record this as a claim, even if I don’t receive any money from the insurer?
Yes, every claim is recorded by your auto insurance company.
The first thing you should do is to contact the Department of Revenue in your particular state. They enforce the local liability laws, and they will perform an investigation of the accident.
Uninsured motorist coverage will protect you from hit-and-run drivers, and it will cover you for any injuries you sustain while driving or as a pedestrian. It applies to bodily injury only and will not cover any damage to your vehicle.
Any person who has permission to drive your car is generally covered. This is why you should list any individuals who regularly drive your vehicle on your policy.
Listing all residents of your household who are old enough to drive must be listed in order to protect you and your insurance provider.
Generally, family members are considered any extended or immediate family members who are of legal driving age, including parents, children, grandparents, aunts, uncles, siblings, cousins, foster children, in-laws and step family members. You should check with your particular insurance provider for an exact list.
You don’t need to list any roommates who are not family members and don’t drive your vehicle or any non-family household residents who don’t drive your vehicle.
Generally, rental car coverage is only offered if you rent a car while you are on vacation. You should always contact your insurance company to specify the details of rental coverage.
Unfortunately, the driving record of any licensed driver who lives in your household will affect your ability to receive car insurance. You may be turned down for coverage or be required to pay high-risk insurance premiums.
Yes, your insurance company can refuse you if you have made as little as one claim, regardless of the dollar amount. However, your insurance provider is required to give you 30-days notice and an exact reason why there are refusing to renew your policy.
Your provider will verify all your claims and driving records before issuing your policy. The insurance company also bases their quotes on the information you submitted. If you notify your provider of the omission, your insurance premium will be adjusted to reflect your actual driving record.
Because there are so many used vehicles on the road, every auto policy is written for actual cash value or ACV. This means that the values of your auto settlement are determined by similar vehicles currently on the market. ACV is based on the cost to replace your vehicle with similar new one, minus the depreciation based on the age of your vehicle.
Replacement cost coverage equals the cost of a new vehicle with no depreciation.
Many difference factors can affect your rate, including the age, make and model of your vehicle, the purpose of your vehicle, where you drive it, your credit rating and your driving record.
They compile statistical history to determine the current rates for auto insurance. The rates are based on the amount of money necessary to pay for all company business expenses and claims.
The rates differ because of many factors including the varying costs of doing business for each particular company and the different claims experience. Companies base current information on their experience dealing with past claims in your area.
Your first claim will not necessarily affect your claim. This depends on many factors including the laws and regulations in your state, the length of time you have had insurance and your particular policy. You should inquire about details with your auto insurance provider.
High-risk drivers are ones who file numerous claims within a short period of time, take intentional risks such as car racing or speeding or who cause an accident while driving under the influence of alcohol or illegal substances
Yes, your insurance company may decide to cancel or non-renew your policy if you are considered a high-risk driver. This depends on the laws in your particular state.
If you are found at fault in an accident, you will most likely lose your safe driving discount.
You should always file a police report if your vehicle is ever stolen or damaged.
This is required by certain states, so you need to check with your insurance provider to see if it’s required in your area.
Yes, your insurance company will attempt to identify and address any possible fraudulent claims. Therefore, you should contact your company immediately if you suspect fraud.
No-fault insurance will pay for the injuries and property damage caused to yourself, up to a specified limit indicated in your policy. This type of insurance varies according to each state, so you should check with your insurance company for details.
This type of insurance protects you, any covered family members and covered passengers. It will pay for required medical treatments relating to any bodily injuries caused by an accident, regardless of who was responsible.
This type of insurance protects you from any liability claims resulting from accidents that were caused by you and injure another individual. Your policy will cover you and any family members listed on your policy who are driving your vehicle or another person’s vehicle with their permission.
Personal injury protection or PIP covers you or any covered passengers or family members for bodily injury resulting from an accident, regardless of who is responsible. Necessary expenses such as child care, funeral, medical and hospital are covered. You should always consult your insurance provider, since PIP coverage is not available in every state.
This type of insurance generally covers any damages caused to you or your property by another driver who does not have any auto insurance or does not have sufficient insurance to cover the damages.
The length of time required to complete each claim is based on many different factors including the number of parties involved in an accident and the severity of the damage. You can contact your claims representative to get a better idea of the approximate timeframe required.
Your insurance provider may attempt to recover your deductible from the driver responsible for your accident. The length of time required is based on several factors including whether a collection agency or attorney is required, the person responsible has insurance and everyone agrees on the reported facts concerning the accident.
This depends on exactly what was stolen from your vehicle and whether you chose to purchase optional coverage. Certain items such as sports equipment may be covered under your homeowner’s or renter’s insurance, rather than your car insurance.
If the police contact you to advise you that your vehicle has been recovered, request a brief description of any damage to your vehicle and then contact your claims representative immediately.
Many factors regarding whether to declare a vehicle a complete loss or repair it are considered. These include the age of your vehicle, the laws in your state, as well as the type and extent of the damage. If the estimated cost of repairs is higher than the worth of your vehicle, your insurance provider will pay you the actual cash value of your vehicle up to the amount specified in your policy, minus your deductible.
Your insurance company will pay the actual cash value of your vehicle for any covered losses up to the limit specified in your policy, minus your deductible. You will most likely be responsible for the remainder of the loan in excess of the amount of your claim settlement.
Lost wage reimbursement varies depending on your particular state and the type of coverage you purchased. Therefore, you should contact your claims representative.
Your insurance provider will usually be able to handle your claim in the state where the accident occurred. If it is not convenient to have your vehicle inspected in that state, your insurance provider can arrange for a local inspection.
Your auto insurance policy will cover the cost of renting a vehicle up to the limit specified in your policy if you chose to purchase rental reimbursement coverage.
Different claims representatives specialize in different types of claims so they will be assigned to your case based on the facts of your particular situation.
Yes. In fact, you are required to purchase auto insurance, regardless of the current status of your license.
Yes, you can purchase auto insurance for any type of license, including a foreign or conditional one.
You can contact a local salvage yard to get an estimate of the value. A reasonable estimate is usually 15 to 20% of the retail value of your vehicle at the time of the accident.
The 10 least expensive cars to insure are a Buick LeSabre, Oldsmobile Silhouette, Honda Odyssey, Buick Park Avenue, Pontiac Montana, Mercury Grand Marquis, Buick Century, Chevrolet Venture, GMC Safari and Oldsmobile Bravada.
You should contact your state department of insurance to inquire about their specific disclosure laws.
The amount of insurance you are required to pay is based on many different factors including the state you live, your claims history, your credit score and your driving record.
Will my insurance cover the cost to replace a cloudy and pitted windshield if I purchased complete glass coverage?
This depends on your insurance provider. The cost may be covered, but any spider cracks will definitely be covered if you have chosen to purchase complete glass coverage.
This depends on the particular insurance company. They take into account factors such as the horsepower, stock and modifications made to a vehicle.
You will most likely lose your auto insurance coverage if you are charged with drinking and driving. However, you should inquire with your particular insurance company as the policy varies.
Most insurance companies require that the name of the registered car owner is on the policy. However, certain companies may issue policies to someone who does own the vehicle.
Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah, as well as Puerto Rico, all offer some form of no-fault insurance. You should inquire with your particular insurance provider regarding details.
Yes, you can choose to insure someone else’s property if you have authorization to do so or you have an insurable interest in that property.
Your insurance policy will cover them if you choose to add them to your auto insurance policy when they visit and drive your car.
This depends on your particular insurance provider. However, most auto insurance companies allow a grace period of 15 to 30 days for adding a new vehicle. If your policy was cancelled or has expired, you may not quality for coverage.
You can lower your premiums by keeping a clean driving record, maintaining consistent coverage and taking a defensive driving or driver improvement course.
A declarations page is a report issued by your insurance provider that indicates your coverage, limits, drivers insured, cost of coverage and vehicles covered.
Why do I have a harder time obtaining auto insurance if drivers in my household have a bad driving record?
Many insurance companies will not insure you or will not offer you a preferred rate if you live with a family member with a poor driving record. However, some companies will exclude this person from your insurance policy so you should check with your insurance provider.
You will be subject to penalties according to the particular laws in your state if you are caught driving without proper car insurance or you are involved in an accident without any insurance. The penalties could include a loss of driving privileges or fines.
A high risk driver is one who has received many tickets, been involved in multiple accidents or who was charged with driving under the influence. Young, inexperienced drivers may also be classified as high risk.
Most states have an assigned risk plan established to ensure that all drivers will be able to receive coverage. High risk drivers may be charged a lot higher for their insurance policy, but they will be accepted for coverage.
This means that you can be charged or assessed an additional amount if your particular insurance company experiences a bad year with many expensive accidents. Most auto insurance policies are non-assessable.
You should check with your auto insurance provider because many companies offer discounts for insuring multiple vehicles, low mileage, anti-lock brakes, non-smokers, accident free driving records, security and safety devices or driver education courses.
Most companies charge an administrative fee to pay your premiums quarterly or monthly, rather than annually. You should check with your particular insurance provider.
Split-limit coverage uses 3 different numbers to specify the limits for bodily injury liability for each person, property damage liability and bodily injury liability for a single accident.
Single-limit liability car coverage gives only 1 number that is the maximum coverage for property damage and bodily injury together.
You may be able to save money by eliminating collision coverage from your insurance policy if you own an older vehicle that is not worth much. You should check with your insurance provider to find out how you can save.
Yes, bodily injury liability will pay for any losses resulting from another driver. If someone hits you with their vehicle, their bodily liability insurance will pay for your expenses.
You will be covered by the insurance of the car owner so he/she should contact the insurance company to file a claim.
Your car insurance policy may cover you if the vehicle is a pickup or van. However, you will need to purchase additional coverage from the rental company if you wish to rent a truck.
Gap insurance provides coverage if your car is totaled, and it pays for the gap between the actual cash value of your car at the time of the accident and the amount due under the lease.
Yes, you will be covered by your auto insurance policy if you operate a non profit-making car pool where drivers take turns driving and are reimbursed for their expenses by the other drivers.
Most American auto insurance policies will provide coverage if you drive in Canada, as long as you bring proof of insurance with you.
You should check with your insurance provider because traffic laws in Mexico are very different from those in Canada and the US. You may require specific Mexican coverage.
You will be entitled to a refund of the unused portion of your premium if your auto insurance policy is cancelled before expiration of the time you have paid premiums.
Yes, all insurance companies must advise their clients of the specific reasons regarding cancellation or non-renewal
Yes, your insurance company can cancel your policy any time as long as they provide you with sufficient notice and a valid reason.
Your insurance company can only perform a credit check if you have signed an authorization form permitting them to do so.
Depreciation is how much the value of your car decreases over time because of wear and tear.
Yes, your insurance provider will pay you less if you are driving an older car with a lot of mileage that is totaled in an accident.
If I am involved in an accident with a driver who has out-of-state insurance, where do I file a claim?
You should check with your insurance company and file a claim as if the other party was from your state.
This depends on the company. Some companies require 3 estimates, but others use estimates provided by internal claims adjusters.
You can challenge the estimate by advising your company adjuster immediately that the damage estimate is incomplete.
This depends on your particular insurance company. Some agents merely service as a resource to refer to you to a claims representative, whereas others may complete the initial paperwork for your claim.
Most insurance companies will offer a minimum 15-day grace period to pay your premium before they cancel your policy.