Auto Insurance FAQ – To Sharpen Your Car Insurance IQ
Auto Insurance FAQ – with Important Info for Today’s Motorist
Below you will find some frequently asked questions with constructive, money saving suggestions.
Question: What is meant by laws regarding “car financial responsibility?”
Answer: According to state law, you are required to bear responsibility for events that transpire while you are driving
Question: What if I decide to drive my vehicle without car insurance?
Answer: Depending upon which state you live in, refusal to buy insurance coverage may result in of fines, loss of drivers license or possibly serving a jail sentence. It is mandatory to have vehicle insurance in all states except Wisconsin and New Hampshire.
Question: Will my coverage protect everyone who drives my vehicle?
Answer: Yes, however this is true only if that driver has your permission to use the vehicle.
Be aware that some policies require all members of your household who drive your car to be named on your policy. In this situation, anyone living with you who drives your vehicle without being named on your policy, would not be covered.
Question: What liability limits do you recommend?
Answer: It is generally agreed among insurance agents that what state law requires is not sufficient.
My recommendation is 100:300:100.
· $100,000 for bodily injury per person
· $300,000 for bodily injury per accident
· $100,000 for property damage per accident
In the US, medical costs are, for the most part, comparable from state to state. So the above bodily injury guidelines apply equally in all states.
You should consider increasing the property damage portion if you live or work in an area where property values are extremely high and the residents drive expensive vehicles. It doesn’t take many Rolls Royce or Lamborghinis to exceed $100,000.
Question: Is auto insurance needed by newly licensed teenagers?
Answer: Yes…absolutely! All drivers must be insured. You must be named on the policy of someone in your household or have your own policy.
Question: In deciding to renew or cancel a policy, what guidelines do insurance companies go by?
Answer: The bottom line consideration is…are you a “worthwhile risk?” Do you have a clean driving record? How is your credit history? Have you filed any claims? These are the major factors, but every insurance company has their own criteria for evaluating risk.
Take a good look in your “visor” mirror. Do you see an A1 driver staring back at you?
Hope you enjoyed this auto insurance FAQ.
By: Joe Goodman