Auto Insurance FAQs
How do I find affordable auto insurance?
Affordable, low cost car insurance is easier to purchase than you might expect. The type of car you have and your driving record are the two biggest factors in your premium. Beyond that, companies are quite competitive and will often give discounts for a safe driving record, for having taken drivers’ education, for having a good grade point average in high school or college, and even for simply having theft protection on your car. You can further lower your premiums by taking a higher deductible or by purchasing just the coverage you actually need.
What is the minimum insurance I will have to purchase?
Car insurance serves two purposes. The most important is to prevent you from being sued in the event that you should be at fault in an accident. You may be out of luck for your own vehicle, but your “liability” coverage will pay for the damage you cause to another vehicle or to someone else’s property. If your car is paid for and is 8 or more years old, you will have the lowest cost if you simply purchase liability.
So, what if I want my own car paid for after an accident?
To cover your own vehicle in an accident where you were at fault, you will need collision coverage. The collision clause is the most expensive part of your policy. However, if you have an older car and take a high deductible, you may be able to purchase cheap car insurance even if you do take collision insurance.
What is comprehensive insurance?
Comprehensive insurance covers circumstances beyond your control such as theft, vandalism, damage caused by striking an animal and broken windows caused by stones or other objects thrown at you by passing motorists. Comprehensive ins is very inexpensive and is worth adding even if you choose not to purchase collision.
Is it worth taking a chance on going without collision?
If you owe money on the car, you may not have that choice. Most banks require collision as long as they hold the title. However, if you are a careful driver with a good record, and drive an older car, it is probably worth taking the chance that any accident would be caused by the “other” driver, in which case your car would be covered under his or her liability clause.
Does my car insurance cover personal injury?
Some states have “no-fault” laws which require your own insurance to pay for personal injury expenses regardless of who caused the accident. Other states have a required minimum for injury that you must purchase. You will have to check with the laws of your own state to determine the case for yourself.
What is a deductible?
A deductible applies to collision or comprehensive ins and is the amount of money you are required to pay before your insurance coverage begins. Many motorists take a high deductible but full glass coverage. That way the deductible, which doesn't apply to liability coverage in any case, lowers your premium, but you still have full coverage if you should break a windshield or other window on your car. Deductibles lower your premium because you are volunteering to share some of the risk.