Auto Insurance Questions & Answers
We get a lot of questions at QualityAutoInsurance.com from our customers about auto insurance. A few of the more frequently asked questions are summarized below.
“Do I really need automobile coverage protection?”
Yes you do. Even if you’ve never been involved in an accident you still need the proper coverage. If you ever do have an accident, you risk losing all you have – especially if someone is injured and you are at fault. Auto insurance is the best protection you can have should you be involved in an accident. In addition, you are required by law to carry a minimum level of coverage. The minimum coverage limits vary by state. You should consult the Department of Insurance site for your state to determine your states minimum coverage requirements. Should you be involved in an accident – even a minor one – and you are uninsured, you could face significant legal issues.
“Does the type of car I drive affect my rates?”
Typically yes. Auto insurance companies take into account the type of vehicle you are driving in calculating your rates. Safer vehicles will often mean a lower premium, as will cars of lesser value.
“If I lend my car to a friend and that friend is involved in an accident does his or her insurance company pay for the damages?”
No. Your car is your responsibility. And even though you weren’t present at the time of the accident, you still will receive a mark on your record and your premiums may also increase. There are excess coverage issues to keep in mind should your policy limits not be sufficient to pay for damages caused. In a case like this, if the driver had their own coverage at the time of the accident, their coverage may kick in as excess. Keep this in mind before you ever loan your car to anyone.
“Is my new car covered by my current auto insurance policy?”
This may or may not be true. Most policies require that the policyholder notify their carrier company or agent within a specific period if you want coverage for a newly purchased vehicle. Some insurance companies give a grace period when you purchase a car where you are covered. Ask your current carrier or agent what their policy is on new car purchases. Most importantly, never assume you are covered. Always make sure you are.
“Does my credit score affect on my insurance rate?”
Yes. Your credit score does matter to carriers. Many Insurance companies take your credit score into consideration when deciding to provide, increase or renew your coverage. The higher your credit score, for the most part, the lower your rates.
“I’m a male under the age of 25, will I have to pay more for auto insurance?”
This is true in most cases. Males under 25 years of age typically pay more for auto insurance than female drivers of the same age. However, across the board, teenagers and mature adults pay more for coverage than the general population because these age groups are typically involved in more automobile accidents.
“Does the color of my car affect my insurance rate?”
No. The color of your car does not impact your auto insurance rate. Things that influence your rates include the vehicle’s year, make, model, body type, and engine size, as well as your personal credit history and driving record.
“Are auto insurance rates set by the government?”
No. The government does not set auto insurance rates. Your state government oversees the different carriers and do have influence on rates. The real impact on your premiums come from things like where you live, your credit score, your age, marital status and your driving record.
“What does ‘No-Fault Insurance’ mean?”
No-fault insurance means that your insurance company pays for your damages regardless of who’s at fault.
“If I don’t have comprehensive coverage, am I still covered for theft, storm damage, flood damage, and animal collision accidents?”
No you are not. If you only purchase collision insurance (coverage that protects against accidents involving objects) you will not be covered for things like vandalism, hail, animal accidents and fires. If you want coverage for these types of incidents, you’ll need to purchase both collision and comprehensive coverage.
“Does my personal auto insurance cover business use of my car as well?”
Typically it does not. Even if you only use your personal car occasionally for business purposes, then you will more than likely need to extend your personal auto insurance to cover business use as well. More importantly, if your employees use their personal car for business purposes while they are working for you, you should also obtain a separate non-owned auto insurance policy.
“How can I be sure I’m getting the cheapest auto insurance rates?”
The best way is to shop around. Many people find they can save a lot of money by comparing different carriers. Many of our customers have discovered that quotes vary significantly between carriers for similar, and even exact, coverage – sometimes by more than $1,000! The only way to be certain is to shop different auto insurance carriers to find the cheapest rate.
Make sure you are getting the best deal on your auto insurance. Our customers often save up to $600 or more. You can compare quotes from 15 top carriers online. Just take a few minutes to fill out the simple form on QualityAutoInsurance.com.
