Auto Insurance Questions

Reader’s Question:

Will getting a second car for myself command me to get a new car insurance to cover that new car?

Maria

Detroit MI

Yes, you will have to definitely provide a new car insurance in order to cover your new second car. In fact, for every car you own, you must maintain a car insurance for it. This is because providing a car insurance for your cars is mandated by state government laws in order for you to legally drive your car on public roads and highways. The government must see to it that you have the means to pay for any casualties and damages that you cause to other people and their cars in case of road accidents. Mandatory insurance coverage amounts differ from state to state, thus, it is imperative that you know how much this is in your state to avoid buying your car insurance coverage in excess especially when you are saving on finances.

We get so often enthusiastic the moment we try to find our new second car and we get excited roaming around from one car showroom to another to find the perfect second car. Most often, because we are too excited for this new purchase, we tend to forget about having a new car insurance that is a very important and vital expense that should come with our purchase of the new car. So, when looking for that new car of yours, always keep into consideration the new car insurance that should come with it.

Second car insurance policies will always come out as more expensive than the first, even if it is just added to your initial car insurance policy. It is highly recommended that before you finally purchase your second car, you should contact your car insurance agent and consult his opinion or get an insurance quote from him regarding the car insurance that would come with the car you are thinking of buying. In this way, you can budget your finances with the insurance being considered and thus, will prevent you from getting shocked with the insurance rate that you might have.

Reader’s Question:

My friends are talking about minimum auto insurance coverage and how they differ from state to state. What is this minimum coverage and how do they affect us as soon-to-be car owners?

Barney

Fairless Hills PA

In most states in the U.S., driving on public roads and highways without an auto insurance policy at hand is punishable by law. It can also cause the suspension of your driving license or your driving privilege. The government wants to protect its constituents by requiring you to purchase an auto insurance so that you have the means to pay for the damages and injuries that you can cause to other people and their properties in case of a road accident. Thus, each state’s Department of Insurance sets the minimum auto insurance coverage required for car owners to have, which differs from state to state.

Auto insurance companies basically offers the state’s mandated minimum auto insurance coverage, which comprises third party liabilities coverage. This coverage will pay for the liabilities that you have to other people to pay for damages and injuries you caused them in the accident. The industry of auto insurance normally state a liability insurance coverage in three numbers, which represent the maximum amount covered for each individual injured in an accident, the maximum total amount covered for bodily injuries at one accident and the maximum amount covered for property damages.

For example, in Maryland, the minimum auto insurance coverage required by the state is 20/40/10 for liabilities insurance. This means that for any accident, your insurance policy must be able to pay a maximum of $20,000 per individual for bodily injuries, $40,000 for total bodily injuries in the accident and $10,000 for damages done to the other party’s properties or vehicle. Similarly, for Colorado, the minimum coverage should be 25/50/15, representing a maximum of $25,000 for bodily injuries per person, $50,000 for total bodily injuries and $15,000 for property damages. Other samples are Alaska at 50/100/25, Massachusetts at 20/40/5 and California at 15/30/5.

Take note, however, that there are a handful of states that do not require a minimum amount of auto insurance coverage such as Wisconsin, South Carolina, New Hampshire, Virginia and Tennessee.

Reader’s Question:

Can you walk me through the process of filing a car insurance claim in auto insurance policies here in Missouri?

Arden

Independence, MO

Even though it is tempting to file an auto insurance claim every time you have car trouble there in Missouri, stop yourself. Auto insurance companies find this to be a bit of a nuisance. The more claims you file, the higher your premium could be. So, if you can handle the financial responsibility of the accident without relying on auto insurance policies, don’t file a claim. There is such a thing as a no-claims bonus, which can bring down your auto insurance premium.

However, when you do decide to file a claim, do so immediately. You might get a call from the other auto insurance company, so make notes in advance, so that your answers are consistent. Finally, get your car fixed. A representative will either call you or assist you at this time. You can take your car to any car repair shop or one pre-approved by your auto insurance company. There are certain advantages to this, one of which is being considered a priority. The repair shop belonging to the network of your auto insurance company would likewise know what your insurer is willing to cover in terms of parts replacement and so on. This is just an option, of course. If you are more comfortable taking your car elsewhere, by all means does so.

Tags: auto insurance, auto insurance claims, auto insurance policy, auto insurance premium, Car Insurance Company

Reader’s Question:

How do I buy cheap senior citizen auto insurance policies online? And do you have any idea how much they cost here in Washington?

Logan

Seattle, WA

The invention of the Internet provided a breakthrough that launched humankind into another age. We can easily do things within the comforts of our own home with just a click away. Some people are quite scared of the Internet, though, because of some news of hacking and so on. Swindlers are also present there, but it is not surprising because the same happens in the real world.

What one needs to do when doing something on the Internet that involves money is to check the license of the companies one is having transactions with. In the case of auto insurance, each state–in your case, Washington–has a Department of Insurance. In order to be 100% sure before doing any transactions, you must check the list of accredited agents and brokers on the State Insurance Department’s Web site. After doing this, you may now go to the listed auto insurance companies’ Web sites and ask for free instant quotes. This way, you would be able to make comparisons in less amount of time. Just imagine how much time and effort, not to mention money, you would be saving if you buy online.

Now, when calculating the auto insurance premium of an individual, companies take into consideration several things, such as: age, gender, credit history, driving record, existing insurance policies, car age and model.

Generally, senior citizens are eligible to have a 10% discount, hence the lower auto insurance premiums, as compared to that of teen driver auto insurance. Female drivers also have discounts because studies show that they get into accidents less often. Good credit history and driving record make auto insurance providers more trusting, thus lower rates. Multiple policies from one company often give you discounts, as well. Lastly, the safer the vehicle is, the less likely it is to be damaged and the passengers to be injured, thus lowering the probability of the auto insurance company giving out money.

Now, it is up to you to avail of discounts depending on your profile in order to have cheap auto insurance policies.

Tags: auto insurance online, auto insurance policy, cheap auto insurance, senior car insurance

Reader’s Question:

Rates for automobile insurance policies in South Carolina have drastically increased. What is the reason for this?

Michael

Columbia, SC

This increase in the rates of South Carolina automobile insurance polices has been due to the new state requirement on auto insurance. The State of South Carolina has enacted a law which took effect on New Year’s Day of 2007 increasing the minimum liability coverage of its motorists. In this law, the 15/30/10 coverage has been scrapped, replacing it with the 25/50/25 minimum liability. The increase in coverage has been necessitated by the rise in traffic accidents where most of the motorists involved end up writing a check because their coverage was not enough to pay for all the damages sustained. This new law seeks to protect the residents financially because the increase in coverage meant the increase in the amount of money the auto insurance provider is going to extend following any accident. But since most consumers frown upon any increase in the price of products and services, the new act has been accepted but with much objection since this resulted to an increase of up to $300 annually in auto insurance payments. But bear in mind that this law seeks to protect and not to burden motorists. Imagine having to shoulder all the remaining cost for medical and repair bills because of insufficient coverage. The best way to lower your auto insurance premiums is to shop around. With a lot of auto insurance providers competing for customers, you will surely get reasonable quotes from other companies.

Tags: auto insurance coverage, car insurance law, car insurance quotes, liability insurance

Reader’s Question:

My auto insurance premiums have been rising, and I think it is because I purchased way too much coverage. What are the best coverages to maintain in California?

Alexis

Anaheim, CA

America’s population has been steadily increasing, and that means that the number of vehicles on the road is also growing. From an auto insurance perspective, this signifies more accidents, which in turn lead to more claims filed against them. Auto insurance companies have then been increasing their rates as a buffer to the possibly huge amount of payouts they’ll have to make. That, so to speak, is the general auto insurance situation.

In your case, if you’re seeking a way to reduce your auto insurance costs, it might then be sensible to start reassessing your needs. The first time you bought your auto insurance, you probably thought you needed a lot of coverage. Perhaps, now your circumstances have changed, and it might be time to make a downgrade. Be sure to think within the limits set by the state of California. California motorists are required to have liability insurance. The minimum liability coverage is $15,000 in medical expenses for one person, $30,000 in combined medical expenses for all passengers, and $5,000 in private or public property damages. Always keep these figures in mind as you try to work out what would be the ‘best’ coverage that would fit you.

You’re not obliged to get collision and comprehensive insurance, but this might bear serious consideration. While liability pays for the other motorist’s damages and bodily injuries because of an accident you caused, collision and comprehensive coverage will, on the other hand, pay for your own medical and vehicle repair expenses. In making your decision, it wouldn’t hurt to consult your local auto insurance agent. He or she might also be able to offer you discounts that can help reduce your car insurance costs.

Tags: auto insurance claims, auto insurance coverage, auto insurance premium, Car Insurance Company, liability insurance

Reader’s Question:

I am Italian and have chosen to live here in Michigan because this is the only state that allows a foreigner to register a car. My question is: If I’m not a permanent resident, will I be able to get auto insurance in this state?

Antonio

Detroit, MI

The State of Michigan does allow non-American residents to register a car, provided that they first obtain a Michigan driver’s license. And since all auto insurance companies licensed to do business here in Michigan require a state’s license for auto insurance applications, then you will definitely have to get a Michigan driver’s license first, and to obtain one, you need to prove residency.

You can, however, get auto insurance coverage using your International Driving Permit (IDP). But still, the auto insurance provider will still require you to get a valid Michigan driver’s license within 30 days from approval of your policy, or it will be cancelled.

Another option is to ask a friend to buy a car on your behalf, have it registered under his or her name, and purchase the auto insurance policy on your behalf, too. However, this may not be a very good move.

Another alternative is to rent cars and obtain rental auto insurance from the same company where you rented the car.

If you really are bent on having your own car in America, it is best to apply for a valid state license and not just rely on your International Driving Permit because this provides only limited options for you.

Tags: auto insurance, auto insurance coverage, auto insurance policy