New Car Insurance FAQS
Assess your vehicle usage, needs, and affordability plus the insurance provider’s products and services before signing up for a policy. You can call the insurer to seek clarification on a policy’s coverage whenever you have concerns. Also, you can read the policy disclosure statements (PDSs) to find answers on policy inclusions, exclusions, renewal, cancellation, benefit limit, and more. Even when the PDSs can help you understand the terms and conditions of an active vehicle insurance policy, still, you may need assistance before the policy purchase.
Buying car warranty for the first time can be overwhelming, especially with so many options and terms that may seem confusing. Here are some common questions new motor warranty buyers make and their answers:
What types of car insurance are there?
- There are several types of car insurance, including liability insurance, collision insurance, comprehensive insurance, uninsured/underinsured motorist insurance, and personal injury protection. Liability insurance covers damages you may cause to others while driving, while collision insurance covers damages to your own vehicle in case of an accident. Comprehensive insurance covers damages to your car due to non-collision events like theft or weather damage, while uninsured/underinsured motorist insurance covers damages caused by a driver with no insurance or insufficient insurance. Personal injury protection covers medical expenses for you and your passengers in case of an accident.
How much car insurance do I need?
- The amount of car insurance you need depends on several factors, including state requirements, the value of your car, and your personal financial situation. In general, it’s a good idea to have enough liability insurance to cover the cost of damages you may cause in an accident. It’s also a good idea to have collision and comprehensive insurance if you have a newer or more expensive car.
How can I lower my car insurance premium?
- There are several ways to lower your car insurance premium, including:
- Choosing a higher deductible: A higher deductible means you’ll pay more out of pocket if you get into an accident, but it can lower your premium.
- Bundling insurance policies: If you have other insurance policies, like home or renters insurance, bundling them with your car insurance policy can save you money.
- Shopping around: Different insurance companies offer different rates, so it’s important to compare quotes from multiple companies to find the best deal.
- Taking advantage of discounts: Many insurance companies offer discounts for things like safe driving, good grades, and anti-theft devices.
What should I do if I get into an accident?
- If you get into an accident, it’s important to stay calm and follow these steps:
- Check for injuries: Make sure everyone involved in the accident is okay and call for medical help if needed.
- Call the police: Even if the accident is minor, it’s a good idea to call the police so they can file a report.
- Exchange information: Get the names, phone numbers, and insurance information of all drivers involved in the accident.
- Take photos: Take photos of the damage to all vehicles involved in the accident.
- File a claim: Contact your insurance company to file a claim and provide them with all the information you gathered at the scene of the accident.
What happens if I let someone else drive my car and they get into an accident?
- If someone else is driving your car and they get into an accident, your insurance will generally cover the damages. However, if the driver is not listed on your insurance policy, your rates may go up.
What is a deductible?
- A deductible is the amount of money you have to pay out of pocket before your insurance kicks in. For example, if you have a $500 deductible and get into an accident that causes $1,000 in damages, you’ll have to pay $500 and your insurance will cover the remaining $500.
What is an insurance premium?
- An insurance premium is the amount of money you pay to your insurance company for coverage. It’s typically paid on a monthly or yearly basis.
What factors affect my car insurance premium?
- Several factors can affect your car insurance premium, including your age, driving record, type of car, location, and credit score. Younger drivers and those with a poor driving record or a history of accidents will generally pay higher premiums. Additionally, more expensive cars and those who drive rashly and irresponsibly will also have to suffer.
While requesting a quote, insurers may ask you questions about pre-existing damage (like damage due to hail or extreme weather events or accidents). An insurer may decide whether or not to cover your vehicle depending on the level of damage. If they agree, you may have to provide evidence by uploading images on the suggested car inspection website or get your damaged vehicle examined at a specified vehicle inspection station.
Vehicle insurers can be your best sources of policy-related information. You can easily access the policy disclosure statements on an insurer’s website for intricate policy details. Researching, purchasing, and managing car warranty are mostly hassle-free with motor warranty online services in the current times. Also, most insurers offer special discounts for buying a policy online. So, why wait? Explore your car insurance options now!