Answers to 5 Frequently Asked Car Insurance Related Questions That May Be on Your Mind

auto-insurance-keysIf you are getting ready to buy your first car, you may have a lot of insurance-related questions on your mind. After all, it’s no secret that selecting the right auto insurance policy is not always a time-effective, straightforward process. Do I need insurance even if I only drive my car once a month? What is a deductible, and how could it influence my final call when it comes to buying coverage? Are there any limits that insurance companies take into consideration when they have to cover a prejudice? These are only a few of the most common questions and concerns that may trouble you at this point. Keep reading to get the best answers and eliminate all your doubts once and for all.

1)      Should I Feel Compelled to Invest in Car Insurance Even If I Drive My Car Every Once in a While?

The answer is yes. You absolutely have to buy car insurance for a number or reasons. First of all, it is a legal requirement in most states. This means that your refusal to purchase this type of coverage can expose you to considerable penalties. There are a few notable exceptions. For example, in Virginia drivers can pay an uninsured motor vehicle fee. However, most states compel drivers to carry a specific minimum level of coverage. To check out different quotes coming from different local insurance companies, all you have to do is surf the Internet and count on to compare car insurance rates by zip code in a matter of a few minutes.

Secondly, you should realize the fact that insurance guarantees your financial independence in the long run, allowing you to cope with massive expenses associated with injuries or extensive property damage resulted in a crash. So yes, you do have to pay for auto insurance if you want to avoid fines and sky-high out-of-pocket expenses.

2)      What Is a Deductible?

A deductible is the amount of money that you would have to take out of your own pockets in the event of an accident. Let’s assume that you’ve wrecked your car and you have to fix it. You file a claim. You need 1,000 dollars to cover your loss. If your deductible is 500 dollars, this means that you will have to come up with half of the entire amount of money that should be invested in auto repairs. Your insurer will offer you the rest. Here’s the catch: if you have faith in your driving skills and you own a new, fully functional car, it may be an inspired idea to opt for a policy with a higher deductible. This way, you would be able to save big on monthly premiums, because your carrier would take on fewer risks. In this case, note that you would have to refrain from filing small claims. For instance, if your prejudice is evaluated at 1,200 dollars and your deductible is 1,000 dollars, it makes no sense to submit a claim. For only 200 dollars, you could actually raise your premiums. If you file several claims over a relatively short period of time, get ready to witness a spike in your current car insurance rates. Drivers whose negligence leads to accidents and those who love to submit a plentitude of claims as often as possible are cataloged as high-risk beneficiaries. Therefore, do everything in your power to polish your defensive driving skills and always think twice before reporting your loss to your insurance company. It is always preferable to pay for minor repairs out of your own pocket to prevent your premiums from growing.

3)      What Is an Insurance Limit?

An auto insurance limit is basically the maximum amount of money that you can get from your insurer in the event of an accident triggering injuries and material losses. Let’s assume that you cause a collision resulting in a few wounds and property damage. You get dragged to court and you are compelled to compensate the victim for 47,000 dollars. If your liability limit of your current policy is 40,000 dollars, this means that you will have to come up with 7,000 dollars and the insurance company will offer you the remaining 40,000 dollars. Obviously, a policy with a higher limit is a real blessing, especially if and when you are responsible for a huge prejudice.

4)      What Is the Key Difference Between Comprehensive Coverage and Collision Coverage?

Collision coverage would enable you to cope with the negative consequences of a potential collision, while comprehensive coverage would give you the chance to protect your vehicle and your valuable assets stored in your car against a great variety of risk factors, including storms, floods, fire, acts of vandalism and burglary attempts. You should also keep in mind that the ideal type of coverage is actually a combination of different policies that bring you the highest level of protection that you can afford, against every conceivable threat.

5)      Would It Be Possible to Get Accurate Quotes Without Consulting an Insurance Agent?

Sometimes, when you’re in a hurry to spot the best deals in terms of insurance, you can’t really afford to waste any time in the process. If you don’t want to schedule time-consuming meetings with dozens of insurers employed by different companies who will only follow their best interest, note that there is a different approach to doing research. You can go online and compare car insurance quotes by zip code as fast as you can say “great coverage.” This is the key to unlocking amazing discounts and identifying once-in-a-lifetime offers. Of course, this method is not a viable substitute for the expert guidance that you may require when you still have lots of doubts on your mind. You can always ask your broker or your lawyer to guide you in the right direction, toward an affordable, truly beneficial policy.

At the end of the day, you should do whatever it takes to get your hands on the best value insurance policy tailored to your financial possibilities.

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