Common questions about Auto Insurance

This question can affect you as you decide on Auto Insurance

There are alot of questions which clients for insurance will always ask about auto insurance companies. Its very important to ask questions and to make sure that when you ask those questions you get the right answers. Here are some of the questions folks

My insurance policy didn't cover for my car in full, WHY?

Many insurance companies pay the actual cash value of the vehicle before the accident and that's where it all ends. Many insurance companies are required to use a proper and fair method in determining the value of the vehicle. 

Are all the people who drive my vehicle covered?

In most cases it YES, but that definitely all depends on your insurance policy which you have to review periodically. It is important to include all the people you want in the list of people to be covered as long as they have a license.

Does everyone need an Auto Insurance?

Depending on your place of resident, in most cases Yes it is important to have an auto insurance. 

How does a persons driving record affect insurance premiums? 

Well in most cases driving record can have the potential to affect the insurance premiums in a positive way but at the same time, it has the danger to negatively affect the rates. A good driving record will mean that your insurance premiums will be relatively lower but a bad driving record will increase your insurance premiums that you will have to pay. Therefore its important to have a clean driving record at all costs.

Does a poor driving record make it difficult to get insurance?

Many companies will be hesitant to insure anybody with a poor driving record and if a person happens to live with somebody with a poor driving record, it may negatively affect your possibility for insurance. 

Why is my insurance quote higher than what my agent originally told me?

Usually this is called a misquote due to the errors in reporting facts that affect your insurance premium rates. The factors that determine insurance premium rates include Age, Location, Marital status, driving record e.t.c If any of these facts are not reported well, then this can give you a misquote. Whenever you feel that there has been a misquote, make sure you talk to your insurance agent.

What is the difference between comprehensive and collision?

Collision just as the name implies means when you have a collision with another object such as a car.  When it comes to comprehensive, this basically refers to anything else other than a collision such as fire or theft.Most will use both coverage's depending on the circumstances with their vehicles.

Keeping communication lines open with your insurance company

When it comes to the world of insurance, it isn't a perfect straight line and the truth is you should always keep communication lines open. You see alot of times we choose to ignore things that are clearly bothering us. This could include terminologies or terms in the insurance policy which you clearly don't understand. It is always important to make a consultation with your insurance providers or your insurance agent on things like this.