Right now, there are countless car insurance options available on the market and each has its own policies, offers and restrictions. Considering this fact, it’s no wonder that so many drivers end up choosing the wrong option for their needs.
Many car insurances cover a large number of losses while still being affordable for the average American citizen and the Doncaster free press presents the number and top cities with the highest risk of road accidents. Once you know how these services work and what they can offer, choosing the best auto insurance becomes a piece of cake.
Here are the most common questions about car insurance finally answered:
Question no. 1: Do I really need a car insurance?
Most U.S. states don’t require drivers to get a life insurance in order to drive a vehicle legally. However, any vehicle must be insured before going on the streets – and that includes cars, trucks, RVs and motorcycles.
Unless you have a car insurance, you face the risk of losing your driver’s license, suffer huge financial loss after accidents or even end up in court.
Now consider this: more than 6 million car crashes are reported in the U.S. every year and many of them also involve personal injury and severe property damage. The harsh truth is that no matter how good you are as a driver, accidents still can happen anytime and that’s when the use of high friction road surfacing is essential to prevent this when possible.
Question no. 2: How do I get a car insurance?
Quote, coverage or policy are all common terms in the auto insurance industry – but how many of us really know what they mean? Let’s explain.
When you go to a car insurance company, the first thing they do is to offer an estimate for the insurance price. This estimate is also known as a quote, while the insurance price may be referred to as ‘the premium.’
Usually, each company has different packages available that protect you more or less in different situations. The protection you get is called ‘coverage.’
Your job is to choose the coverage you think is suitable for you and pay the premium for your insurance contract (policy). Most of the times, you can divide the premium in monthly, semi-annual or annual payments.
Question no. 3: How does car insurance work?
For example, when you have an accident, you exchange the insurance information with the other driver(s) involved and immediately call the police. The police will file a report based on their findings at the accident scene.
If you have a good car insurance, the company will take care of paying costs and negotiating with the other driver’s insurance company. Depending on the situation, though, you may also be asked to pay a certain amount of money, which is called a deductible; this price is established in advance with the insurance company and it represents how much you’re willing to pay if you make a claim.
In the states that have ‘no-fault’ insurance laws, each party’s insurance company can cover injury claims regardless of who’s to blame for the accident.
Important note: After you file a claim, your auto insurance costs might be higher after the next renewal. That’s because many auto insurance companies also analyze your driving record to calculate the risks for suffering future accidents. On the bright side, your premium is also influenced by how many years you’ve had a claim-free history, which may lower the overall costs.
Question no. 4: What does car insurance cover?
The basic packages cover your responsibility for physical injuries and property damages you may cause during an accidents.
Here are the most common types of coverage:
- Bodily injury liability. For this option, your insurance company pays for physical injuries and other claims if you’re at fault for an accident. It includes hospitalization, recovery and legal bills.
- Property liability. This option offers coverage for damage you caused to the other driver(s)’ personal property: vehicles, walls, fences and other items. However, it does not cover damage to your own vehicle.
- Personal injury protection (PIP). PIP is often required in no-fault insurance states as it covers financial and injury expenses for you, household relatives, pedestrians and car occupants.
- Medical payments. This option covers injuries caused by a car accident for you, your family members or any other passengers in your car.
- Uninsured / underinsured motorist. Here, you’re covered for claims when the other driver involved in the accident is uninsured or underinsured; also offers coverage if you’re the victim of a hit and run.
- Comprehensive coverage. Covers damage caused by anything except for vehicle accidents. This may include contact with animals, vandalism, explosion, windstorm and natural disasters such as wildfires or flood.
- Collision coverage. Here, you get coverage for the damage to your car after a collision with another vehicle or object.
- Guaranteed auto protection (GAP). If you owe more on your financed car than it is worth at the time of an accident, your insurance company can pay the difference.
Some companies offer additional, customized insurance coverage such as:
- Roadside assistance. It covers jump-starts, flat tires, towing costs and other issues of this kind.
- Auto glass insurance. Some companies provide you with full glass coverage or low to no deductible glass coverage.
- Rental reimbursement. With this coverage, your insurance company offers a rental car if your vehicle is undrivable or under repair after a covered claim.
- Custom equipment. It covers highly valuable car equipment such as custom wheels or a stereo.
- Mechanical breakdown. This option covers vehicle repairs for leased or newly purchased vehicles.
- Rideshare insurance. This one can prevent coverage gaps if your vehicle is used in delivery services or rideshare.
Question no. 5: How is car insurance priced?
You can only know the exact premium once you establish all the details of your contract with the insurance company. However, you can estimate the costs based on the following factors:
- Age, marital status and credit score
- The previous car drivers and their history (if existent)
- Accidents and tickets
- The purpose of car use (travel, business, commuting)
- Car model, year and value
- Your deductible
- Anti-theft devices