You got questions, we got answers. Here is a list of frequestly asked questions about auto insurance industry.
YES it does. Most insurance companies get your driving history from your DMV. Depending on the company they use last 3 to 5 years of your driving history. Statistics show that people with more bad driving history, will tend to have more traffic related problems so insurance providers take this in to considiration.
YES, it does. Again statistics show that people that pay their bills on time tend to be more responsible and they drive safer. Most insurance providers will give substantially better rates to people with good credit history.
What is collision and comprehensice coverage?
Collision coverage is for when you have a collision with another object such as a car or a wall. Comprehensive coverage is for damages that happen other than a collision such as fire, vandalizm, a fallen tree branch. Usually if you lease or buy a car with a loan, you are required to have these coverages.
Usually YES as long as you gave permission for that person to use your car. This is not always the case so you should check your policy details for this. For instance if you live with your girl friend in the same household but she is not listed on yur policy as an additional driver, she will not be covered if an accident occurs. On the other hand, if you live in seperate house holds and you gave her permission to drive your car, she will be covered. Again this differs from provider to provider so check your policy
.
Most insurance providers will pay the actual cash value of your car at the time riht before the accident. This is usually the market value of your car before the accident. Insurance providers should use a fair method to determine this value. If you are not happy with the amount that they offered you, you might be able to negotiate with them by explaining why your car is worth more than they think it is.
Most insurance professionals agree that the state minimum limits do not provide enough
coverage. They agree on 100/300/100 coverage. Which translates to:
100,000 per person for bodily injury
300,000 per accident for bodily injury
100,000 per accident for property damage
Medical expenses usually cost about the same through out United States. Unlike medical expenses, property damage costs will vary depending on where you live. If you end up driving in high end neighborhoods, a single car or wall could cost more than $100,000 so use your judgement depending on where you live |
