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 Kevin and Julia, Milwaukee, WI
Saved $1062.00!
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Car Insurance F.A.Q.
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There are several very important things that you should know in order to get a low insurance
rate. In most cases, any driving infraction can have an impact on your insurance rate, but
typically minor violations are not considered. Since any insurance company wants to find out how
secure it is to insure you, they also pay attention to such things as your age, gender and marital
status. The place where you live is also an important thing since in a city with a lot of traffic there
is a greater possibility for car accidents. Some other circumstances are your credit history, the
make and model of your car, etc. So take it all into account and try to drive safely and maintain
a good credit history.
2. Is any rebate provided?
You can request a rebate in case if:
- you are going to purchase insurance plans for several cars,
- your house belongs to you,
- your car is equipped with automatic seatbelts and an air bag unit,
- you pay the total amount at once,
- and some other circumstances.
3. Will my insurance rate grow if I have any driving infraction?
It goes without saying that an insurance company raises your insurance rate next time after
you had an accident or a driving infraction. They just don’t want to take a risk since it’s a well-know
fact that people who have either had an accident or received a ticket are more likely to have
another accident in some period of time or violate the road laws again. Insurance companies
don’t raise your insurance rate for mere punishment; they just need to protect themselves from
any further possible expenses. But if you got into an accident and it wasn’t your fault your
insurance rates shouldn''t grow.
4. Can my personal car insurance be extended for
a car that I rent?
In each particular case you may need to contact your insurance company or check your
agreement. Anyways it’s always safer to purchase rental coverage when you are on vacations
which will save you time and money if you ever get in trouble.
5. What is the difference between property damage
and physical damage?
Property damage is the damage caused to the property, or better to say the car of another
person. Property damage coverage is usually obligatory for any insurance plan and has no
deductible. As for physical damage, it is the damage caused to your property, or your car.
Physical damage coverage is not obligatory but it has a deductible.
6. Are other people who use my car protected
by my insurance?
As a rule all the people who use your car by your leave are also protected by the insurance.
However it’s strongly recommended to consult your insurance company and find our about any
possible obstacles in that matter in advance.
7. What should I do if I am involved in a car accident?
First of all you should make sure that no one is injured both in your car and in the other driver’s
car. Then call the police to report about the accident and follow their instructions as to whether
you should move your cars to get them out of the way of traffic or not. Call your insurance
company so that they would give you detailed information on what to do next. Remain calm and
keep your balance. Answer all the questions of the police officer truthfully but don’t admit your
guilt or accuse anyone. Gather the following information about the other driver: car registration
number, driver''s license number, telephone number, address and full name.
8. Do I need insurance for a classic car?
According to the law anybody who drives a car is going to need car insurance. This law is
supposed to protect the victims of car accidents and cover their losses. Nevertheless even
though you will have to buy a minimum insurance plan you won’t be obliged to pay for physical
damage coverage. But we recommend you to think of more options for insuring your old car since
usually old car’s value is lower than its repairing and buying a new car can be rather problematic if
after the accident your car cannot be fixed.
9. Will I still be under insurance if I change
my place of residence?
It is recommended for you to change your insurance if you are planning to stay at any different
state for more than thirty days. Of course our insurance will still work for you wherever you are
but the local policies and laws of the state where you’re going to move might be different. Before
you move to a new place of residence you need to get to know what changes in your insurance
plan it might bring.
10. Will my leased car be under insurance if it’s hijacked or
crashed in an accident?
According to your leasing agreement you’ll be required to pay off the rest of your leasing charge
and other charges stipulated in it. Moreover they will keep the money you paid for the security
deposit. A GAP (the gap between what you own and what the car is actually worth) insurance
covers the balance of your lease after your physical damage policy has paid out the actual cash
value for the overall loss of your car because of it being hijacked or damaged.
11. My daughter has recently got her learner’s driving
permit and is learning to drive. Is it possible to include
her name in my insurance policy and not to pay additional
fee for that?
Many insurance agents don’t have any additional fees for people with a learner’s driving permit.
Moreover sometimes you don’t need to include her in your insurance policy. Nevertheless, as
soon as she gets her driving license she will have to be included, otherwise she will not be
allowed to use your car. It goes without saying that beginners usually get into more trouble and
have more driving infractions than other drivers that’s why they pay more for their insurance.
Your daughter may consider a classic non-expensive car to reduce the insurance costs.
12. While purchasing a new car do I have to get
it insured before I take it home?
Yes, the car you bought should be under insurance before you drive it home. If you still have
insurance, you can use it for your new car for thirty days on the assumption of informing your
insurance agent. The time when you purchase a new or pre-owned vehicle is the right time to
give some thought to your insurance plan and look for better and more affordable opportunities.
First of all decide on the car you are going to purchase, consider several options and then
compare the insurance rates for all the options - this might help you make up your mind. The thing
is that even though one can think that cars don’t differ much, the expenses for their maintenance
can differ greatly which is going to influence the insurance rates.
13. I’m going to start attending classes in another
state and take my parents’ car with me.
What should I do with the insurance?
If you are not a resident of that state, and that car belongs to your parents, they can keep the
insurance and not change it. Nevertheless the laws of some states might oblige you to register
your car in that state, and of course you’ll have to change your insurance as well.
14. What other people can drive my car under insurance?
All people who have your consent and a driver’s license can drive your car. However you
should keep in mind that all people who live with you should be added to your insurance policy
if they are going to drive your car. For instance, if you live with someone (not a spouse) in one
house, you should add that person’s name to your insurance policy so that he or she would be
under your insurance while driving. But if someone you don’t live with wants to use your car and
you allow them to do that, there is no need to add their name to the insurance policy - they will be
under your insurance anyways.
15. What liability limits does your company offer?
As well as other insurance companies we agree that the minimum levels of required auto
insurance defined by the state are not sufficient. While the majority of insurance companies
offer their clients liability limits of 100/300/100, the ones that are defined by the state are around
20/40/10 (it is different in each state). The liability limits should be read as follows:
$100,000: bodily injury liability limit for one person injured in an accident.
$300,000: bodily injury liability limit for all injuries in one accident.
$100,000: property damage liability limit for one accident.
If you live in rather hectic surroundings with heavy traffic, you probably have to think of having
higher limits since in case you are responsible for damage to more than one cars if you cause a
chain reaction accident, you are definitely unlikely to face a large lawsuit. Even damaging
someone’s house or visual environment can cost more than your property damage liability limit
can cover. That’s why you need to consider your assets and make the right choice.
16. I don’t know if I should buy comprehensive insurance
or collision insurance. Which one is better?
One cannot say which one of them is better. They just protect your car from two different
dangers. Collision insurance protects you and your car in the case of encounters with other cars,
objects and surfaces on the road. Collision insurance will cover the car owner whether or not he
or she is at fault for the accident. Comprehensive insurance covers theft, fire, vandalism, weather
losses, and other circumstances which may damage to your car. Comprehensive auto insurance
does not usually cover force majeure situations, theft by relatives or co-workers, or damage due
to improper maintenance. The majority of people prefer to purchase both types of insurance if
they use their car every day. But in some situations when they only keep their car in a garage all
the time without using it they may only have comprehensive insurance because no car accident
can happen.
17. What are the minimum car insurance requirements?
Car insurance is obligatory throughout all the country and the insurance requirements differ in
each state. If you’re not sure what’s required in the state where you’re going to travel, look for
some additional information about the state’s minimum car insurance requirements and think of
exceeding your limits if they are lower than required. Keep in mind that if you have a serious car
accident, the minimum car insurance requirements will most likely not cover your damage.
18. What if I have a bad driving record? Will it influence my
insurance rates?
Driving infractions and traffic violations have a great influence on your insurance rates. Insurance
agents check on you driving records in the Departments of Motor Vehicles in different states,
investigate your background and try to detect high risk drivers. It has been proved that people
who have already violated road laws are inclined to do it again.
19. How does the driving record of the people
I live with influence my insurance rates?
Some insurance agents won’t even approve of you to have car insurance if one of the people
who live in your house has a bad driving record since they are going to be covered by your
insurance too. If you have a teenager in your family insurance rates can be considerably high
for you, since teenagers are supposed to be a higher risk in this matter.
Each company solves this problem in its own way. Some of them can insure you on the
assumption that you won’t add their names to your insurance policy. Other companies don’t
insure any members of the family if any of them has a bad driving record.
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