Auto
Insurance: Frequent Questions Answered
What
auto insurance do I really have to have?
At a very minimum, in most states you are required to have liability
insurance. This pays for damage to another vehicle if an accident
is your fault. It does not pay for any damage to your own vehicle.
It does, however, prevent you from being held personally responsible
for damage to another vehicle.
If your car is paid for,
you are not required to have collision which pays for damage to
your own vehicle. However, if you have a loan on the vehicle, you
will be required to maintain collision. Otherwise the loan company
is at risk of losing their money if you have an accident resulting
in a total loss.
How do I find
my best coverage with the most affordable rates?
By using
our free service, you can now request multiple, no-obligation —available for nearly all states, coast to coast.
What is property
damage coverage?
Property
damage coverage replaces automobiles and other property you damage—such
as a guard rail, for instance—in an accident. Most states
require $5000 to $10,000 worth of coverage.
What is the difference
between bodily injury coverage and personal injury protection?
Bodily
injury coverage pays for injury to another person, but does not
pay for your own injury or death. This coverage protects you against
lawsuits filed against you if you are responsible for the accident.
Personal injury protection pays the hospital, medical and funeral
expenses for you, your passengers and/or any pedestrians that you
hit. Some policies even cover rehabilitation and lost income.
What is comprehensive
coverage?
This pays
for the cost of repair if you should hit a deer or other animal
or if your car should be stolen or vandalized. Such accidents are
not considered your fault, so filing a claim under comprehensive
coverage does not raise your rate. Along with comprehensive coverage,
it's a good idea to include full glass and towing. Thus if a rock
hits your windshield, you can have the glass repaired without paying
a deductible first. Towing is usually limited to a certain number
of miles, and you may have to pay the garage, but the money—up
to the specified limit—will be reimbursed by the insurance
company.
Can the company
cancel my policy if I have an accident?
No, they
cannot cancel an existing policy if it has been in force at least
two months and you have paid your premium. However, auto insurance
is not guaranteed renewable. If you have had excessive claims, the
company can choose not to renew the policy.
What is uninsured
motorist coverage?
In spite
of the fact that all states require drivers to carry auto insurance,
some drivers either have no insurance or have too little. These
could be foreign visitors, illegal aliens, people who have lost
their license or insurance for some infraction, or people who choose
to drive but could not pay the premium to keep their auto insurance
in force. If you are hit by a driver who has no insurance, your
own insurance company will pay for your damages under this coverage.
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