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Auto Insurance FAQ

What You Need to Know About Auto Insurance

auto insuranceWhen considering an auto insurance, most of the buyers have several questions about their options, what is the eligibility, and whether there are some options for high-risk drivers.

By learning the answers to these auto insurance FAQ, you will be in a much better position to purchase the best coverage.

1. Can I drive without any car insurance?

Well, the answer to it is No! Every state has its own rules and requires motorists to carry a liability insurance that covers damage to property and people due to accident that took place because of your fault.

2. What are the minimum insurance requirements?

Although, minimum insurance coverage amount may vary from state-to-state, but almost all insurance policies will cover your liability for bodily damage, and bodily injuries.

3. Why is my auto insurance so expensive?

Well, your actual policy cost is determined by the statistics. Insurance companies plug into your statistical model, and determine the rate. Mostly, young drivers get involved in more accidents so they have to pay higher premiums. The best way to get better rates is by improving your driving record over a period of time.

4. Do I have sufficient coverage?

Well, this is one of the most common auto insurance FAQ. However, there is no set answer to this question, mainly because enough coverage depends upon the actual financial situation of a person. You can assume that you have sufficient insurance if you meet the state’s minimum coverage requirements. It is better to speak to an insurance agent as they can guide you on the best coverage according to your needs.

5. What are my options if I can’t find any car insurance?

If you’ve been turned down due to various factors, including your driving record, you still have many options. You can either buy a auto insurance policy from non standard insurer or join a state assigned risk pool.

The non-standard insurers mostly write policies for all those who have high-risk neighborhoods, or poor history of accidents. The state assigned risk pool has several insurers in your state, who are required to accept motorists that are assigned to them and write policies for them accordingly. However, being high risk policies, you will have to pay more for them.

6. What is the difference between non-renewal and cancellation of a auto insurance policy?

Your insurance company, or you may chose not to renew the policy once it expires, due to various reasons. Sometimes you may decide to buy another policy if you are not happy with the service you are receiving. On the other hand, insurer may not renew the policy, if you did something, which increase their risk to cover you.

However, cancellation part is more serious. As per I.I.I, insurance companies cannot cancel the policy that has been in force for more than sixty days unless:

• Your driving license is suspended
• You’ve defrauded the company
• You’ve not paid your premium.

Cancellation is more serious as you may face difficulty in finding insurance in future, and may have to fork out more for buying a high-risk policy.

7 How can get the best deal ?

You should get quotes from several car companies using online websites. You can do this within minutes. Once you have quotes, you can compare them and choose the best one according to your needs.

Hopefully, all these auto insurance FAQ must have clarified some of the questions that you may have about an auto insurance policy.