If you are just beginning to look for auto insurance or you just want to understand your auto insurance a little better then you have come to right place.
Here are a list of Frequently asked auto insurance questions.
Does everyone have to carry auto insurance?
Yes. This is called financial responsibility and it is required for any licensed driver to legally drive. If you do not have a vehicle but you are licensed you should be able to get what is called a "non owned auto policy". This will cover you should you rent a vehicle or drive someone else's vehicle. You are required to carry at least your states minimum liability requirements
Can I get the same coverage and discounts with all insurance companies?
No. With the obvious exception of the types of coverage like Bodily Injury/Liability, Uninsured/Underinsured motorist, medical, Comprehensive and Collision deductible. These coverage are offered by all insurance companies. However their coverage may vary depending on your driving record or where you live. The same will apply for discounts. Not all companies will offer discounts for multiple policies, being a good student, Gap coverage (loan coverage), being married.
I got a quote and now that I am ready to start my policy the premium has changed, why?
There are many factors that go into your auto insurance rates. If your insurance agent did not run a motor vehicle report when you were first quoted then possibly a forgotten accident or citation may have now shown up. Keep in mind that when you are giving your driving history to your agent it is of the utmost importance to be accurate with your information. All accidents and minor citations will stay on your record for a minimum of 3 years. Major violations will now be on for 10 years, this includes DUI, DWI to name a few.
If you have moved your new zip code could also play a part in your new rating. If you have a young driver in your household they may show up and will need to be included or excluded depending on where they have insurance. But a young driver will increase premiums substantially.
Also bear in mind that if you have just given your agent the vehicle identification number for your car that may change the premium as well. There are numerous makes and models, so some may cost more for replacement parts which only your VIN will be able to pinpoint exactly what model you have.
If you have a new job and your commute is further, or if you just got a job your vehicle could go from pleasure use to commute.
Can anyone drive my car and still be covered by my policy?
In most cases, yes, as long as they have the permission or reasonable belief from the insured that they can use the vehicle. The insured is the person named on the insurance policy and their spouse if applicable.
There are some exclusions, so you would need to look at your particular insurance policy to make sure. Remember, everyone in your household must be listed on your insurance policy if they have a license. For example, if a girlfriend you live with uses your car, she may not be covered if you did not list her on your insurance policy. On the other hand, if you live separately, she could use your car with your permission and be covered.
My child is going to be licensed soon, do I need to add them to my policy?
Yes, as long as they are living in your household and will be driving your vehicles then they absolutely will need to be added. Most states will require that any person that is a licensed driver must carry insurance. So unless your teen has opted to acquire their own insurance policy then they will need to be added. If your child is a good student with a grade point average of 3.0 or B average you may be able to qualify for that discount but you will need to get a print out from your child counselor.
What kind of car will be cheap to insure?
Generally any car that does not require full coverage will be less expensive. But you want to make sure that if there is a loss and your car is totaled that you can afford to either loose the vehicle or replace it out of pocket. But ultimately your driving record will always play a huge factor in your premium.
