- June 25, 2022
- Posted by: admin
- Categories: Auto Insurance, blog, Car Insurance Questions
A car insurance policy provides financial protection in exchange for a premium, i.e., the amount the consumer is expected to pay for the policy. Each policy has its limits, defined as the maximum amount the insurance company will pay upon a claim.
Auto insurance is sometimes also required by the lender or leasing party, but largely, consumers tend to sign up for car insurance since it can help them meet the minimum coverage requirements that have been mandated by a majority of the states in the United States of America.
If you’re a first-time buyer of an insurance policy or one who is looking to switch from their current package, you must ask your auto insurance provider the following questions:
1. What are the Types of Coverages Offered?
The type of coverage you select plays a vital role in determining the price of the auto insurance policy. All standard car insurance policies are expected to include:
- Liability car insuranceis the foundation of any insurance policy and is a requirement in most states. It pays for property damage and injuries in case of a car accident. Moreover, it will pay for legal defense, considering you were sued because of the car crash.
- Uninsured motorist insurance pays for one’s medical expenses in case you were hit by someone who doesn’t carry insurance that pays medical bills or has liability insurance.
- Collision and comprehensive coverageare optional coverage types frequently sold together. The collision coverage pays to repair and replacement bills. In contrast, comprehensive coverage pays for bills generated due to vandalism, theft, damage due to fire, hail, floods, or collisions with animals.
- Medical expense coveragelargely varies by state, but in most cases will pay for medical bills and other related expenses (such as rehabilitation and lost wages) if you were injured in an accident. Per your state’s law, you may also be required to sign up for personal injury protection or PIP insurance.
Auto insurance companies also offer insurance add-ons and policies such as gap insurance, roadside assistance, mechanical breakdown insurance, rental reimbursement, rideshare insurance, and new car replacement. Don’t be shy to ask away!
2. How Much Car Insurance is Needed
Remember that not having enough auto insurance is a recipe for financial disaster, so refrain from only focusing on cheaper prices and skipping out on the actual coverage that you need. To determine exactly how much insurance you need for your personal or commercial vehicle, dive deeper into the state’s requirements.
If you have leased or financed your vehicle, check in with the lender to determine the type and amount of coverage required as part of the lease or loan agreement.
3. What is a Risk Assessment?
Insurance providers consider several factors for providing insurance rates; this includes the make, model, and variant of the car, alongside its age, location, ZIP code, and coverage selection. The driver, too, may influence the pricing formula in terms of driving record, credit history, driving experience, and non-driving factors such as gender, occupation, home ownership, education, and marital status.
4. What are the Deductibles?
Apart from all the factors mentioned above, the deductible amount also factors into the rate of your insurance policy. This is the amount that you’ll need to pay out of pocket in case you file a claim for repair or replacement bills. For this reason, it’s recommended to select a deductible amount between $250 to $2,500; remember, the higher the deductible, the lesser you’ll need to pay in premiums.
Car insurance buyers can save money by selecting a higher deductible. If you believe you’re a safe driver with slim chances of getting into an accident, you can bet on yourself for just that. However, ensure that you can afford to pay off the deductible amount from your pocket if even you need to file an auto insurance claim.
5. Who Can Drive an Insured Car?
The state and the insurance company managers can drive an insured car. Since they may be different depending on your geographical location, it’s best to ask your car insurance representative who can drive a car that has been insured under your ownership.
However, in most cases, insurers allow multiple drivers to be listed under the car insurance policy. You can list licensed family members, unrelated but licensed drivers living in the same household as yours, and licensed but not insured under any other auto insurance policy as a driver covered by your auto insurance.
6. What is the Desired Method of Payment?
The payment method depends on the insurance company you’re hoping to register with. While some insurance agents encourage lump sum annual payments, others don’t mind contacting your credit card company for monthly installments, quarterly payments, or two payments every six months.
7. Are There Any Discounts?
The good news is that auto insurance companies are keen on offering discounts if you qualify for it, that is. These discounts are generally offered to students with a brilliant academic record or those graduating from a specific institution. They may also be offered to those possessing a hybrid vehicle, having advanced safety features in the car (such as airbags and alarms), or a clean driving record. Ask your car insurance representative to familiarize you with all the possible credits you could weigh in on for lowing the premium.
Need More Answers? Speak to an Auto Insurance Agent in Springfield
Western Mass Auto Insurance has been operational in Western Massachusetts since 2014. This is a team of auto insurance agents in Springfield that offers full-service personal car insurance and commercial vehicle insurance. This insurance provider guarantees free quotes, no obligation, and low down payments for their auto insurance. Consumers also get the best prices based on their situation.
This company has access to the top car insurance companies in Springfieldmaking it possible for its insurance advisors to secure personal and commercial vehicles in no more than 15 minutes alongside the license plate! Bundling up the car insurance with home insurance and apartment/renters insurance accounts for 25 percent savings at Western Mass Auto Insurance; hurry up before the offer ends!
Get your car insured in Springfield today by speaking to a car insurance agent.