Frequent questions about auto Insurance

There are a lot of questions people tend to ask about auto insurance regarding costs, the right insurance policy and other concerns, thus we will try to answer some of them.

When do I need an auto insurance policy?

There are some conditions when a person needs to get an auto insurance policy, in most places around the United States and Europe it is mandatory to have at least a liability insurance policy if you want to drive a car legally, but also if you work for a transportation company like Uber or Lyft, that is why, most of these transportation companies offer this benefits to people who use their cars to transportation of employees an others. These companies will cover medical expenses for you and your passengers and property damage for your car, however is always important that you have an auto insurance policy of your own, in case something fail with the transportation company’s system.

How Much does an auto insurance policy cost?

There are different issues when it comes to the cost of an insurance policy

Deductible: as you know the deductible is an amount of money that you would have to pay first, before the insurance company can take care or the rest of the bill, but if the total amount of the repair is below the deductible of your auto insurance policy, then the insurance company does not have to pay for anything, but do not worry most deductible are established in a way that the policyholder can pay it without a problem. On the other hand if the total amount is higher than the deductible, then your insurance company would take care of the rest.

Valued of Insured Car

This will all depend on the real cost of your car, the more expensive is the car, the more is the auto Insurance policy.

Repair costs

This issue relies on the cost and kind of repairing and auto parts and how much does you insurance policy cover.

Benefits of having an auto insurance policy

Nowadays there are more people buying cars, this fact has increased the number of accidents, and everyday it gets more important to purchase an auto insurance policy, and here are some benefits you will have if you buy one.

Law requirements preparation

As you know it is a law requirement to have at least a liability policy, in case you have an accident and hurt yourself or other people, if this happens and you do not have an auto insurance policy then you could lose your driver’s license, therefore the first benefit you will get is to fulfill the law requirements.

Financial liability

Remember that most liability policies cover property damages and medical expenses, and a great benefit you can get through an auto insurance policy is to have those expenses totally covered and it would not only cover your expenses but other people’s involved in the accident.     

Medical costs coverage

Another benefit is to have medical costs covered, this not only will help economically but also you will be able to act quickly in case of a really bad car accident, which could save your life and other people’s life as well, therefore, is better to be prepared.

Replacement costs

After being in a car accident the monetary consequences can be too high, that is why having an auto insurance policy can benefit you for covering these kinds of expenses, this will depend on the gravity of the damages and your policy coverage and if your car is considered as total loss, then the insurance company will compensate you for the current value of your car.

Another benefit of having auto insurance is that some companies offer discount for robbery or for having several policies with the same policyholder.

Having all these benefits can give you the tranquility of driving, knowing that you and your passengers are protected from any expense that an accident or any other mishap could cause.

 

Auto insurance tips when buying a car

From the moment you start thinking about buying a car, you should also think about purchase an auto insurance, because you need to take into account this costs inside your general budget, in that way, by the time you have your new car everything will be in order and you will be financially covered from the moment to hit the accelerator, therefore, we will give you some important aspects you should consider during this process:

Coverage for replacing a car

If this is not your first car and your are changing cars, the previous policy may have a new car coverage statement, this kind of coverage will offer you financial protection for some time, and you need to find out exactly how much time the policy can cover, sometimes it can be for 15 days or even just 24 hours, but the important issue here is to be protected from the start.

Take care of your own auto insurance purchasing:

Do not expect or assume that the person who is selling you the car is going to take care of submitting your auto insurance policy, this is an errand you have to do on your own, all you need is to call your insurance representative and add a new car to your policy. Also depending on the car you are buying, you will need to add new coverage to your policy like collision or comprehensive, in that way, your new car will be fully covered.

Purchase GAP insurance

Some people have their car totaled soon after they purchase it, because cars start to depreciate soon and it is better to calculate their value after there are bought, in some cases, the car costs a lot more that what most insurance companies can give you for total lost, in this cases, GAP insurance can cover not only the difference but what you still own at the dealership.  

Auto Insurance for teenagers

When teenagers get a driver’s license, it is a very exciting moment and all that excitement can be reflected in their driving, that is why it is very important  to protect them and your car in case of an accident.

There are two ways to insure a teenager, you can purchase a policy only for her/him or you can include them in your own policy, the last option is cheaper, because if you get an individual policy, the company will set high rates for considering teenagers high risk drivers because of their lack of driving experience and the tendency for speeding.

There are some important aspects that can help to maintain a good relationship between teenagers and insurance companies.

Keep good grades: Believe it or not grades can help you gain confidence in front of an insurance company; it means that you are a focused and responsible person, which can help you keep your insurance policy.

Get driving experience: the best way to have an excellent discount in an insurance policy for teenagers is to graduate from a formal driving training, they can get hours of driving experience with a driving expert and be ready to hit the road.

Avoid traffic penalty: If a teenager is involved in a serious accident, especially if they are drinking or using drugs, he/she can end up being cancelled by the insurance company and if they get to have coverage for the accident, the rates will be much higher for some years after that.

Safety Programs: There are some insurance companies that offer safety programs to help parents track their teens and be sure they are not in dangerous areas. This kind of programs can also register behavior through surveillance cameras and the speeding record of the car, it would be ideal to get these safety devices, in that way you as a parent will be protecting your son or daughter from getting involved in an accident or robbery.

Auto insurance basic policy

There are some important facts you should know about auto insurance that could help you to understand better how does everything work.

Auto Insurance rate

Your driver’s rate can affect heavily, whether an auto insurance company takes you as a policyholder or not, and even if you already have a policy and you have a bad driver’s record, these could affect the way they could react to a certain situations and how much support they will give you.

Also if you have had auto insurance policies before and you are changing companies, then the new company will investigate how many claims did you do and how much were they, this could also be a reason to reject you as an ensure.

Cheap Coverage        

Most common policies are expensive, like liability coverage or the collision coverage, so you can find cheaper policies that could give you great protection for you and your car, some of them are: gap coverage, motorist coverage, roadside assistance, comprehensive coverage, this last one is the most expensive of all but it is still cheaper than liability and collision coverage.

Insurance Discounts

A lot of insurance companies offer discounts as a reward for full payments, electronic payments, safe driving records, safety devices, therefore, we advise you to look for an insurance company that values all those qualities and gives you rewards for it.

Expiration Auto Insurance policy date

In order for you to avoid big expenses you must renew your auto insurance policy before its expiration date for two reasons, first, because if you let it pass, then you will have to pay a higher amount of money to get the policy back and the insurance company will not see this as a responsible move, and second, if you are interested on changing your insurance company, they can realize you did not pay your last policy on time, therefore, they could not accept you, so is better for you if you get the new policy before, the current policy expires. 

Auto insurance basic policy

In most part of the world, it is mandatory for you to have an auto insurance policy to protect you and others in case you have an accident, rubbery, or any other situation where you and your car can be affected. Auto insurance is basically a contract between a policy holder and the insurance company, where this last one, commits to pay for damages according to what the policy establishes. Consecutively, we will give you some basic knowledge about auto insurance, so you can be familiarized and informed about this topic.

Most auto insurance companies cover:

A medical expense, to treat injures caused by accidents and sometimes it also covers funeral expenses in case of death.

Property, for fixing you car from damages produced by theft or car crashes.

Liability, to cover legal responsibility caused to others, whether is to a car or for injuring someone.

In most of the United States, in order to drive a car, people need at least a basic auto insurance policy, besides a driver’s license and the car’s documents.

Who else does an auto insurance policy cover?

Most auto insurance policies will include covering your family members in case they are driving your car with your permission; it also covers other cars’ damages if you are driving them with the owner’s consent. Auto insurance policies also cover damages in case you are transporting people through UBER or other kind of transportation company.

What auto insurance coverage is mandatory?

In some places of the United States laws referring auto insurance change, but in almost every state is mandatory to have:

Property liability, which covers damages to other caused by you or other person that could be driving your car.

Bodily injury liability, which covers injuries caused to you or other person while driving your car, during a car accident.

Personal Injury Protection, it covers injuries for you and a passenger, in case you have an accidents or other kind of mishap.

Auto insurance basic concepts

Within auto insurance policies and contracts there are some concepts that sometimes people read, but they do not understand too well, that is why we will explaine some basic concepts about auto insurance.

Vehicle’s current value: Most auto insurance companies will pay just for the current value of your car in case of a complete lost, which means no matter what the car cost you the first time you bought it, the insurance company will calculate the real value according to the date and that would be the amount it would cover.

Commercial Use

This means that you use your car mostly for commercial purposes like sales, transportation of merchandise or transportation of employees; it also means that you use your vehicle for work’s errands like going to the bank or to the post office.

Deductible

The deductible is the amount of money you will have to pay every time you use your auto insurance policy before the company can cover any damage.

Endorsement

It is the modification used to suppress, add or change the policy.

Cancelation

It is the action of finishing a policy before the expiration date.

Claim

Claims can vary according to the situation, but overall is a petition to the insurance company to pay you an amount of money according the policy statements.

Declarations Pages

These pages have details of your payments and coverage, this kind of document is frequently sent by the auto insurance company to the policyholder at the beginning of the contract, or every time you make a change on you coverage plan.

Liability

It is a word used to refer to social responsibility, which means that if you ignore a traffic sign like a stop sign or a red light and as a consequence you cause an accident, you have to pay for yours and other people’s damages using your auto insurance policy.

Knowing these terms is very useful when reading or buying an auto insurance policy, so you can understand the contract’s details.