Car Insurance Details

Introduction

Introduction

Car Insurance Details

Car insurance is one of the necessary expenses that most of the drivers like to think about – until they need it. Whether you shop a new driver for your first policy or an experienced Road Wrong who wants to better understand the coverage options, this guide will run through everything you need to learn about car insurance.

When I bought my first car – a used Honda Civic that saw a better day – I remember being overwhelmed by insurance options. The agent threw conditions such as “responsibilities”, “wider” and “cut able”, and I shared my head together, pretended it. It wasn’t until I really had to make a claim after a fender bender that I really appreciated the importance of understanding my coverage.

Types of car insurance coverage

Liability insurance

Liability insurance is the basis for any car insurance and is required in most states. It covers physical damage and damage to property that you can cause others in an accident.

Responsibility for physical injury: It covers the costs associated with injuries or deaths that cause driving or other driver.

Damage: It covers damage that causes the property to you or another person using your vehicle.

Collision cover

The collision insurance covers your car as a result of the collision with another vehicle or item, even if it is a fault. If you lease or finance your car, the lender needs your conflict coverage.

extensive coverage

Comprehensive coverage pays for the injury caused by events other than conflict, such as theft, barbarity, natural disasters, falling objects, fire, fire or killing an animal.

One of my colleagues once looked like a very healthy tree for its new SUV. After a particularly violent storm, she returned to find a huge branch and crushed the cap. Fortunately, his wide coverage took care of repair and cut it.

Individual Injury Protection (PIP)

Personal injury protection, sometimes called “no error insurance”, includes medical expenses for you and your passengers after an accident, no matter what error. It can also cover lost salaries and other related expenses.

Unspecified/lower coverage of the engine is carrying

This coverage protects you if you are in an accident with a driver, who has no insurance or not enough insured to cover the entire cost of your loss.

Medical Payment coverage

Medical payment coverage pays for medical expenses if you or your passengers are injured in an accident, even if it is a fault.

Inter -set

If your car is total or stolen, the gap insurance includes “difference” as your car is currently (which will pay your default insurance) and your car loan or lease is still on the amount you need to be given.

Cars affecting car insurance prices

Insurance companies consider various factors when deciding your prize:

Car recorder

Your driving history is one of the most important factors affecting your insurance rates. Accidents, quick tickets, DUI and other violations will increase your prize.

During my college years, I got two quick tickets over a period of six months. When it was time to renew my insurance, I was surprised to see that my prize had increased by about 30%. My prices began to drive three years of pure driving before returning to normal levels.

Age and experience

Small, less experienced drivers usually pay more for insurance. Usually, your age decreases, the middle drivers usually have the lowest prize.

Vehicle type

Make, model, year and price of your car affect the insurance rate. Expensive cars, sports cars and high theft vehicles usually cost more to insure.

Place

Where you live and park, your car affects your prize. Urban areas usually have high prices due to the risk of accidents, theft and barbarity.

credit score

In many states, insurance companies use credit points to determine the prize. High credit score drivers often get low prices.

Annual mileage

The more you drive, the more you pay for insurance. Someone who is at a distance of 50 miles in every way, possibly paying more than someone working from home.

Coverage

Types and amounts of coverage you choose will directly affect your prize. More coverage means high premium.

How to save money on car insurance?

Shop around

Different insurance companies weigh factors in a different way, so prices can vary greatly. To find the best price, get quotes from many insurance companies.

Bundle policies

Many insurance companies provide discounts if you buy many types of insurance from them, such as home and car.

Increase your cut

A high cut is a low premium, but make sure you can pay it cut able if you need to submit a claim.

Benefit from exemption

Insurance companies provide different discounts, including:

• Secure driver discount

• Good student discount

• Military discounts

• Professional organizational discount

• Discount on foal of device

• Defensive driving course exemption

When I turned 25, I called my insurance company to see if I am eligible to reduce all age -related interest rates. Not only did I get the discount, but the agent also informed me of an exemption for professional association that I did not know. These two discounts jointly saved me more than $ 200 annually.

Keep good credit

Improving your credit points can lead to low insurance premiums in many states.

Drive safely

Maintaining a pure driving post is one of the best ways to keep the insurance rate low.

Consider usage -based insurance

Many insurance companies now offer programs that track your driving habits through the mobile app or device installed in your car. Secure driver can serve discounts.

Understand your policy

Declaration page

The declaration page summarizes your policy, including:

• Politics number and duration

• Insured vehicles and drivers

• Types and cover restrictions

• Premium amount

Cuttings

A deducted amount is the amount you pay from your pocket before insurance kick. For example, if you have a cut of $ 500 and $ 2000 damage, you pay $ 500, and your insurance company will cover the remaining $ 1500.

Coverage

Coverage limits are maximum amounts that your insured will pay for the tire damage. These are usually written as three numbers, such as 100/300/50, which means:

• $ 100,000 physical damage per capita

• $ 300,000 physical injury liability per accident

• $ 50,000 property damage per accident

Exclusion

Exclusion is specific conditions that are not covered by your policy. Normal exclusion includes:

• conscious injury

• Damage while committing crime

• nuclear threats or war injuries

• Normal wear and tear

Claim

When are you going to claim?

You should claim when:

• Your car is stolen

• Your car is damaged by a tire hazard

• You are legally responsible for damage or damage to property

However, for small events where the cost of repair is less or less than your deduction, it may be more understandable to pay from your pocket instead of the risk of premium growth.

The last winter I slid on ice and scored my car against a railing. The damage was cosmetic – some scratches with the bus passenger side. I got an estimate of $ 600 for repair, and my cut was $ 500. I decided not to submit a claim and paid instead to repair to avoid an increase in a possible rate.

How to submit claims

1. Contact your insurance company immediately after an accident or event.

2. If applicable, provide all the requested information including police report.

3. Documentation of damage with images and notes.

4. Keep track of all communications and expenses related to the requirement.

5. If approved, the insurance company will release the payment minus your deduction.

Requirements for car insurance of state

Insurance requirements vary from the state. Most states require at least a certain liability insurance, but the minimum amount varies. Some states also require extra coverage, such as:

• Personal Injury Protection (PIP)

• unlicensed/lower engine driver

Special rating

Driver with high risk

Drivers with many accidents, DUIs or other serious violations can be considered high risk and may meet much higher prizes. Some may require insurance through state assigned risk policies.

Teen

Putting a teenager in your policy can significantly increase your prize. However, many insurance companies offer good students discounts for teens with high grades.

My sister’s prize was almost double when she added her 16 -year -old son to her policy. He urged her to maintain good grades, which made her worthy of 15% good student discounts. He also recorded him on a defensive driving course for further discounts.

Classic car insurance

Standard car policies cannot adequately cover classic or collector cars. Specific classic car insurance usually provides agreed value cover, which pays full sum insured without depreciation when the car is total.

Rent car coverage

Your individual car insurance can now rent cars, but coverage may be different. Before reducing the insurance to the rented company, check your insurance to understand what is covered.

The future of car insurance

Telematics and used insurance

Telematics units and apps that monitor driving behavior are becoming increasingly common. These programs can reward safe drivers with low prizes.

Autonomous vehicle

When a self -driving technology promotes, questions about responsibilities and insurance arise. When an autonomous vehicle crashes – owner, manufacturer or software developer? The insurance industry is still following these challenges.

Digital claim process

Many insurance companies now offer mobile apps that allow you to submit requirements, upload images of damage and track the progress of requirements digitally, and streamline the requirements process.

Frequently asked questions

Does the car follow an insurance car or driver?

In general, the car follows the insurance car, not the driver. If you borrow your car to someone and they have an accident, your insurance is generally primary, while their insurance can provide secondary coverage.

How much car insurance do I need?

While the state is at least one starting point, they often do not provide adequate protection. A good rule of thumb is to bear the area of ​​responsibility that matches your network to protect your property in case of a case.

Will my prices increase after an accident?

Not necessarily. If you have an accident fee or not an error, your prices may not increase. However, by -light accidents usually have a premium increase of three to five years.

Do my credit scores affect my car insurance prices?

In most states, yes. Insurance companies have found a ratio of credit score and requirement frequency, so drivers with high credit score often get low prices.

I experienced this first -hand when I spent a year focusing on improving my credit scores and expanding it from the mid -600s to the mid -700s. When I renewed my car insurance the following year, my prize fell by about 15%, even though nothing else had changed in my profile.

Should I hit the old car and make wide coverage?

If the value of your car is low, consider leaving this coverage. A general guideline is to re -evaluate this coverage when the value of your car falls 10 times during your annual premium for this coverage.

What happens if I let the car insurance lapse?

A lapse in cover can lead to:

• Higher prizes when buying new insurance policies

• State penalties, including license or registration suspension

• Personal financial responsibility for accidents during the lapse

• potentially violation of loans or leases

How do I add someone to my car insurance?

To add someone to your policy, contact your insurance company with a person’s information, including your name, date of birth, driver’s license number and driving history. Remember that adding drivers, especially the one with poor driving journals or limited experience, can increase your prize.

What is SR-22 insurance?

SR-22 is not actually a type of insurance, but a certificate that some drivers must submit with the state to prove that they have the necessary minimum insurance coverage. It is usually required for drivers who have been imposed on DUI/DWI, driving without insurance or several serial traffic offenses.

Does car insurance cover rental cars?

Your personal car policy can provide coverage for rental cars, but the extent of coverage varies. Connection and extensive coverage often extend to rented cars, but you can have holes in coverage, such as for loss of fee use or low value loss.

conclusion

Car insurance is a complex but important financial product for drivers. When you understand what types of available coverage, factors affect your prize and ways to save money, you can make informed decisions about your policy.

Remember that the cheapest policy is not on the best option. Proper coverage should balance reasonable price with adequate protection for your specific needs and circumstances.