Frequently Asked Questions About Auto Insurance

When you purchase a vehicle, you may feel overwhelmed with all the questions surrounding the right auto insurance coverage. For this reason, we have put together some of the frequently asked questions about auto insurance and the answers to the same, which are as follows:

What type of insurance is highly compulsory?

In the United States of America, liability insurance is the most required type of auto insurance in all 50 states in the country. However, note that some states also have additional coverage options, like uninsured motorist coverage, that are also required by law. In some scenarios, your insurer may require you to get collision insurance if you financed your car.

How much does auto insurance cost?

The cost of insurance is one of the most common car insurance questions and is usually not set at a fixed price. Instead, it varies and is based on different factors, including driving history, age, type of vehicle, credit report, and more. Make sure that your insurance cost is not too expensive and that it doesn’t exceed the cost of damages or injuries when paid out of your pocket.

What happens if I don’t have auto insurance?

The answer is that you may face severe penalties that may adversely impact your finances. Driving without auto insurance poses a threat to you as a road user and other road users around you. In most cases, you may have to pay a certain fine. If you’re involved in an accident without insurance, you may carry all the financial burdens of that crash.

Who is covered by my auto insurance policy?

Any licensed drivers in your home are covered when driving the vehicle. Apart from your household members, anyone who gets your permission to drive the insured vehicle is also covered.

Can I get insurance quotes without paying?

It’s typical for lenders to give out insurance quotes for free. If your insurer requests any form of payment before providing a quote, consider it a red flag and obtain your insurance policy elsewhere.

Does my driving record matter to my premium?

Your driving record is one of the essential things that auto insurance companies use to determine premium costs. So, your record will significantly affect your premium, alongside other things like credit score, driving history, and age.

Does my child need to get insured after getting a permit?

The United States law doesn’t necessarily require those with learning permits to have insurance. However, if you want to take that step for additional protection, it would be a fantastic idea.

What differentiates collision from comprehensive coverage?

Collision coverage is more specific than comprehensive coverage. The collision coverage only covers you in scenarios that involve a collision, while comprehensive coverage protects you against things like water damage, vandalism, theft, and other non-collision accidents. Please note that comprehensive coverage doesn’t cover collisions.

Can I change my coverage?

Yes, you can change your coverage. However, it would be prudent to wait for the policy to expire before taking that action. If you can’t wait for the policy’s expiry, you would have to cancel your current, which can often lead to a fee.

What is a deductible?

A deductible is defined as the amount of money you pay before your insurance provider takes any step. For instance, if a particular car sustains $3,000 worth of damages and your deductible is $500, you need to pay $500 before the insurance companies cover the rest of the $2,500.

Asking questions about your auto insurance coverage is an excellent first step towards being adequately insured. At Duane Weber Insurance, our agents are always working to ensure you have the insurance coverage you need. It is up to you to protect your vehicle and keep it in good working order. If you have more questions about your car insurance, call and talk to our agent today!