Reader’s Question:

Do accident and insurance always go hand in hand?

Chloe

Pierre SD

Yes and no. The idea about accident and insurance can go both ways. You buy insurance because you want to be protected financially in case of an accident. One can also say that after suffering from an accident, the need for insurance becomes greater.

Let’s say you got involved in an accident. What are the steps you need to do? If you’ve been reading advice articles, then you know that keeping a copy of your insurance policy in your car’s glove compartment can help. Having insurance is one of the many questions that police officers will ask you once they arrive on the scene. If you are in an accident and insurance is nowhere to be found, you could be penalized.

Once you have settled everything with the police, stay on the scene even if they’re already gone. Be sure to get the name of the officer that arrived and double check if he indeed has your version of the accident. During this period, exchange important information with the other party. This includes name, driver’s license as well as insurance information.

Before you wrap things up, call your agent. Inform him of what transpired. Ask what needs to be done in order for you to get your claim. Now remember, you should do all this even if you think the accident was just minor. Once the company gets wind of this and learns that you didn’t report it, it gives them a reason to increase your rates. When you get home, take out your policy and review it. If you have any questions on the terms, call your agent the next day. Ask for their advice.

Don’t waste time thinking on was really at fault. If you think it was you, then say so. The police report as well as the agent’s view of the scene can always confirm or negate this. There is no way to escape from an accident and insurance is one way of coping with it.

The Payment

Hopefully, your accident involves only damages to things and not to people. And, hopefully, it wasn’t your fault.

Even if it’s just your car that’s banged up, repairs can be a major headache. This is where the reality sets in that replacement cost is not the same thing as market value. Your car can easily be declared a total loss even though the money you’d receive is nowhere near what it would cost you to replace the vehicle.

Reader’s Question:

How can I determine which one is the right auto insurance policy for me?

Ferdie

Houston TX

If only purchasing an auto insurance policy is not mandated by state law, we could have gotten away from having to spend time finding the right insurance policy for us. If only having an insurance policy at hand is not essential to protect us financially in case of road accidents, we won’t even have a hard time and worrying if we have chosen the right and trustworthy insurance provider as our partner. If only every auto insurance company is selling the same insurance policy, then all we have to do is just pick out a policy from the first auto insurance provider we met. But this is not the case. With all the many insurance companies out there selling various types of car insurance products, it may be very difficult for us to finally choose which auto insurance policy we think is right for us.

You can say that a certain auto insurance policy is right for you when you feel comfortable with it in terms of coverage details and premium. Details about the insurance coverage should be the greatest factor that could make you feel whether such insurance policy is right for you. Anyone can get the cheapest auto insurance around, but are they being covered for something that should matter to them? You may save on getting the cheapest auto insurance but you should also make sure that you are getting the right insurance coverage. As far as premiums are concerned, the people who are most unhappy about their auto insurance are those that think they are paying too much for their auto insurance. As long as you think you can afford to pay your auto insurance, you will feel secure and comfortable with it.

Prior to finding your insurance policy, or at least prior to buying one, you must know yourself what you are really looking for out of your insurance. What needs to be covered? How much coverage do you think you need? What’s your budget? Only by gathering as many car insurance quotes as possible, you will know your options and have an idea as how your auto insurance will be.

Reader’s Question:

What do I get with a full coverage auto insurance and how can it differ with an ordinary auto insurance?

Morgan

Boston MA

In many cases, people will think that their car insurance policy will also protect them from paying damages done to their car during an accident when in fact, their ordinary insurance policy will just cover them for bodily injuries and property damages done to other people due to the accident. The basic auto insurance coverage will just cover the state-mandated insurance coverage that car owners should have, which is the third party liabilities coverage to pay for bodily injuries and property damages to other people.

In a full coverage auto insurance, what you’re covered for is the state mandated minimum requirements plus comprehensive coverage and collision coverage.

With an insurance policy with an additional collision coverage, you will be covered for the physical damages done to your vehicle due to a collision accident with another driver or another object.

Comprehensive coverage, also referred to as non-collision coverage, can save you from having to pay for repairs when your car is damaged by non-collision incidents such as burglary, vandalism, fire and natural calamities such as flood, storms and tornado. In this case, there is no need for collision accidents and negligent third party drivers in order to make a claim against the insurance policy. The general logic behind a comprehensive coverage is to provide you with the insurance coverage from accidents that are not your fault.

Getting a full coverage auto insurance is not mandatory in most cases. However, scenarios when you need to acquire a full coverage auto insurance is when you are financing a car you don’t own or when you are leasing the car you use. This is because you have to ensure the car owner that his car will always be in good condition.

As a general rule, you cannot purchase a collision insurance coverage without a comprehensive insurance coverage. On the other hand, you can buy a comprehensive insurance coverage even without the collision coverage.

I hope these information will help clear the confusion in your mind.

Reader’s Question:

I just got married here in Miami Florida. I bought a new vehicle and registered under my wife’s name only. I have my own car as well with my car insurance provider. My spouse’s car insurance provider told her that I need to be under her car insurance policy as well. She was told that it is by law that I am included in her policy. Is that true? Is there any way that we can have separate car insurance policy?

Benny

Miami Florida

The law that the car insurance company was probably referring to is that car insurance companies require policyholders to list all licensed household members in the policy otherwise they need to be specifically excluded.

Usually you cannot keep your policy separate. This is car insurance companies’ guidelines. If they are filled that way you have to give the information otherwise the policy may be canceled. You also have the option of contacting your car insurance provider because you may need to add her on your car insurance policy too. If your wife has a claim against them, you and/or your company can be held responsible. This is the reason why insurers want both listed.

It is much cheaper to just get one car insurance policy for both of you than getting separate policy. Generally, a car insurance rate is derived by rating the car to the driver. So, if you have two separate car insurance policies with two drivers and one car for each car insurance policy. You may also be able to take advantage of the multi vehicle discount if you insure more than one vehicle with the same company.

Reader’s Question:

Hello, this is Terry of Missouri. Do all automobile insurance policies cover car rental reimbursement?

Terry

Columbia, MO

Hello, Terry of Missouri. The answer is not all automobile insurance policies do. Most people don’t think about car rental reimbursement until they are unable to use their car because it has been damaged and is at the repair shop. Only at this time do they fully realize they need a car, and it would be better if the automobile insurance policy would reimburse what they spend on car rental.

Many, likewise, don’t realize that Car Rental Reimbursement isn’t a given in automobile insurance policies. They will need to have chosen an automobile insurance coverage that explicitly includes car rental expenses if they don’t want to pay for it out of their own pocket. If their car is in the repair shop for about two weeks, they might end up spending as much as 500 dollars on rental alone. The good news is car rental reimbursement, when included in an automobile insurance policy, doesn’t actually cost that much. The average cost on top of the premium is one or two dollars a month.

Even though some people think that they are unlikely to get into an accident that makes their cars unusable, it helps to be prepared. So, the next time you go shopping for an automobile insurance policy, be sure to check whether the insurer will cover what you spend on car rental. In the end, it will be worth it.

Tags: auto insurance, auto insurance coverage, auto insurance policy, auto insurance premium, rental car insurance

Reader’s Question:

Are drivers required to purchase uninsured motorist automobile insurance policies in South Dakota?

Trevor

Sioux Falls, SD

South Dakota is one of the states in America where the number of uninsured drivers is very high. Of the total driver population in the year 2006, 8% operate motor vehicles without any automobile insurance coverage at all. South Dakota has seen a steady rise in uninsured motorists since. It has also been witness to an increase in alcohol-related traffic accidents where most of the perpetrators were unable to pay for the damages they caused. This resulted in a promulgation that required motorists to not only carry minimum liability but uninsured motorist automobile insurance policies, as well.

Liability insurance that needs to be purchased is generally called the 25/50/25 coverage in South Dakota. These numbers stand for the maximum amount that automobile insurance companies will pay for an accident where their policyholder is responsible. $25,000 goes to treatment of injuries to one person, and up to a maximum of $50,000 for all passengers in the vehicle, while $25,000 is the limit for ruined property. Moreover, the uninsured motorist insurance covers $25,000 up to $50,000 for bodily injuries you or other passengers in your car sustained following a road mishap with an uninsured driver.

If you have been on a strained budget because of costly automobile insurance premiums, start shopping online. Get as much quotes as you can from various websites, so as to easily compare prices without having to make calls to each company individually.

Tags: auto insurance policy, auto insurance premium, Car Insurance Company, car insurance quotes, liability insurance

Reader’s Question:

I heard that auto insurance policies are quite expensive. Are there affordable ones for senior citizens? I am from Tennessee, by the way.

Bessie

Memphis, TN

Bessie, what you heard about the prices of auto insurance policies is correct. In case you were wondering, it is like that because of the apparent number of incidents of vehicular accidents that happen annually here in the United States of America. Automotive insurance companies are just protecting their money.

But despite this fact, you should not panic because you can strategize to make your auto insurance premium as affordable as possible by making use of the discounts that automotive insurance companies offer for different reasons. Remember that the most important thing is to equip yourself with the necessary knowledge on auto insurance policies that are most applicable there in Tennessee.

First, you asked about automotive insurance premiums for senior citizens. Discounts are available for senior citizens, so you should not forget to take advantage of these. You would be surprised by how much these discounts could reduce the total amount of your automotive insurance premium.

Furthermore, discounts are also given to female drivers. This is because female drivers are generally safer drivers than men. So, if the driver is female, she might as well enjoy the discounts that are available.

There is one last thing that I have to mention. If there is more than one driver or more than one vehicle or more than one type of insurance policy in your household, you can get a hold of the multidriver, multivehicle and multipolicy discounts. It is up to you to mix and match these discounts depending on your personal profile.

To end, the purchase of auto insurance policy should be to protect your finances. Now, if your automotive insurance policy is too expensive, it defeats the purpose. So, be wise.

Tags: affordable car insurance, auto insurance policy, auto insurance premium, Car insurance discounts, senior car insurance

Reader’s Question:

Will SR22s in California result in cancellation of automobile insurance policies?

Kayla

San Francisco, CA

An SR22 is a document filed by the automobile insurance company on the policyholder’s behalf. This form is filed with the Department of Motor Vehicles to show proof that an individual has automobile insurance coverage.

There are two instances where an SR22 may be required by the State of California. The first one could be a traffic violation that merited driver’s license suspension. This may mean getting involved in an accident and was unable to present proof of coverage to the law enforcement officer at the time of the traffic mishap. Or it could be due to a driving while intoxicated (DWI) arrest. In this case, the offender will be required to obtain high risk insurance, thus the need for SR22. These two situations typically result to a suspended driver’s license.

For the offender to have the license reinstated, he or she will need to present proof to the DMV that there are automobile insurance policies in effect. Having a non-owners car insurance policy also means having an SR22. So, cancellation of auto insurance policies largely depends on the offense drivers have committed that triggered the SR22 procedure. To avoid having to go through all this in the future, remember to always bring proof of automobile insurance coverage. It could be an insurance card or even a photocopy of the policy itself.

Tags: DMV, DWI insurance, high risk insurance, SR22 Form, traffic violation

Reader’s Question:

How can a teenager avail of an auto insurance policy in Florida?

Edward

Jacksonville, FL

Assuming you are a teenager aged 16 to 18, you probably don’t have a valid driver’s license yet and only possess a learner’s permit. You also probably don’t have your own car and use your parents’ car to drive around. If this is the case, then it would be quite unnecessary for you to acquire your own auto insurance. It would be more practical for either of your parents to sign you up under their own auto insurance policies.

Adding a teenage son to their policy would raise your parents’ auto insurance rate by a 100%. A teenage daughter, on the other hand, would raise it by 50%. Despite this increase, it is still far cheaper for either of them to put you under their policy than get you your own. Purchasing auto insurance only becomes an absolute necessity when you purchase your own car because without coverage, you won’t be able to register the vehicle.

You can help out your parents with the additional cost by giving them opportunities to get discounts. Some auto insurance providers actually consider teenage drivers with a high GPA as a favorable risk and may offer a concession. As you’re probably just starting out as a driver, so it’s important to note that in Florida, minors aged below 17 are not allowed to operate a motor vehicle between 11 p.m. and 6 a.m. unless they’re with a licensed driver aged at least 21 or unless the minor is transit to his or her place of work. 17 year old drivers, however, are restricted to drive from 1 a.m. to 5 p.m.

Tags: auto insurance policy, Car insurance discounts, car insurance law, teen, teen insurance