FAQs About Vehicle Insurance
Buying vehicle insurance can be a little confusing, especially if you are new to buying it. While auto insurance is mandatory in all states, each state can vary in their requirements. The following FAQs about vehicle insurance may help you understand your car insurance a little better.
Q: What types of discounts do auto insurance companies offer to their customers?
A: Most auto insurance companies offer customers discounts for good driving, being a good student, being retired and having multi-policies with their company. You may also see discounts for having certain car safety features and anti-theft devices. The types of payment options a customer chooses may also reflect a discount. A customer may pay less if he pays in full, pays his premium electronically or receives his bill by email.
Q: Can you save money by raising your deductible?
A: Yes, raising your deductible on your collision and comprehensive coverage will lower your premium. It is important to have the deductible money available in case you do have to make a claim. Insurance companies will give a lower premium because they realize that they will not have to pay out as much in the event of a claim.
Q: Is it bad to let your auto insurance policy cancel or lapse?
A: Yes, it is not a good idea to let your auto policy lapse or cancel due to nonpayment. Most insurance companies want customers who are responsible. By letting a policy lapse, this shows them that you may be a risk to them. Therefore, when you go to get insurance, you may end up paying a higher premium. The best way to avoid this is to always pay your bills on time. In the event that you want to switch insurance companies, have the new insurance in place before you cancel the old policy.
Q: What factors influence the cost of car insurance premiums?
A: Each insurance company varies in their underwriting policies. What is important to one company may not be as important to another. Most companies look at the motor vehicle reports to see how many accidents one has been involved in. They also look at the number of claims made by the individual, how much money was paid out and his credit history.
Q: Why should I get comprehensive coverage on my vehicles?
A: Comprehensive coverage is only mandatory if you have a leinholder on your vehicle. Most banks will demand that this coverage be put in place. Comprehensive coverage will cover your vehicle in case of theft or vandalism, fire or flood. It also covers instances of hitting animals, such as deer, and it covers glass breakage. Comprehensive coverage is dependent upon a deductible.
Q: Is it possible to get online quotes for auto insurance?
A: Yes, most major auto insurance companies offer the ability to give customers online quotes directly from their websites. You will need to supply your name, address, birth date and driver’s license number. You will also need the vehicle information such as the year, make and model and the VIN number. You should also have an idea of what type of coverage you are interested in.
Q: Should I purchase gap insurance on my vehicle?
A: Gap insurance coverage is a good choice if you are still paying off your vehicle. It comes into play for a customer whose car may be totaled in an accident but may still owe money on the car.
Q: What information does an insurance company require if I want to have insurance with them?
A: Most insurance companies will need the basic information such as your name and address, your date of birth and your valid driver’s license number. They will also want this information for all drivers of the household. In addition, they will need the year, make, model and VIN number of all vehicles as well as any leinholder information. It is important to disclose any accidents or tickets that you or anyone on the policy may have.