Frequently Asked Questions About Auto Insurance

The best way to lower your auto insurance premium is by keeping your driving record clean. Vehicle safety features can also help reduce insurance costs. Cars outfitted with anti-theft system often also enjoy lower car insurance premiums. Read more…
The amount of car insurance you need depends on your budget and comfort with risk. Most states require at least liability insurance. Your insurance needs might also depend on where you live and your driving style. A higher deductible can also help reduce costs. Read more…
Actual cash value is when your insurance company pays the market value for your damaged or stolen vehicle. Replacement cost means you are compensated for the cost of a new car. Insurance companies almost always favor actual cash value payment. Read more…
Insurance rates can vary during the year by up to 48%. Some studies show that car insurance rates are higher at the beginning of the year. Also, some states have significantly lower car insurance rates than others. Periodically shopping around for better rates can save you money. Read more…
Usage based auto insurance is determined by how much and in what manner you use your car. Limited use, in a safe area, with a mild climate may translate to lower insurance premiums. Safe driving habits are also considered part of use and can affect auto insurance rates. Read more…
If you carry a higher car insurance deductible, then your monthly premium will be lower. However, if you make a claim, you’ll have to pay more up front before the insurance begins to pay. Insurance type may also affect how much you can modify your deductible. Read more…
Collision coverage pays to have your car repaired or replaced after it comes into contact with another car or stationary object. Comprehensive car insurance covers repairs in the event that your car is damaged by fire, animal collision, natural disaster, vandalism, or falling objects. Read more…
Liability auto insurance covers you if you are at fault for injuring another person. Comprehensive insurance covers you if someone steals your car, if it’s damaged by weather, or you hit a deer. Collision insurance coverage is for when you hit a wall, fence, or another car. Read more…
Cheap auto insurance may expose you to excess risk. For example, if you carry minimum liability insurance, the costs of a claim might exhaust the insurance payout. Less expensive auto insurance may also require you to pay a high deductible before the insurance begins to pay. Read more…
Most, but not all, states require some kind of car insurance. Even if your state law does not require car insurance, it might be wise to carry some coverage. The cost of repairs or damages can often be very high. In most cases, car insurance is a good idea regardless of state law. Read more..
Your car insurance may include coverage for any rental car, so be sure to check before you purchase extra insurance. However, any limitations on your car insurance will be limited on your rental too. Some car insurance covers trailer insurance as well, but it may only be partial coverage. Read more…
The most expensive states for car insurance are Michigan, Rhode Island, New York, Delaware, and Louisiana. The least expensive states for car insurance are North Carolina, Idaho, Ohio, Maine, Wisconsin, and Tennessee. Read more…
Self-driving cars are statistically much safer than human driven vehicles. It’s possible that self-driving cars may not even require insurance in the future. This is because the fault of any accident would be due to technical problems. In that case, car manufacturers may be liable instead of car owners. Read more…
If your car suddenly has no brakes, don’t panic and don’t shut off the engine. Try pumping the brakes first. You may also try gradually applying the emergency brake. Standard transmission vehicles can be slowed down by downshifting. Be sure to avoid skidding. Read more…
Older drivers with a good driving record often enjoy lower car insurance rates. However, for people over age 75, insurance rates can actually be higher. Defensive driver courses, low mileage, and joining a senior association may help lower auto insurance costs for seniors. Read more…
Being a pet owner won’t affect your auto insurance rates directly. But if you drive with your unrestrained pet in the car, you could expose yourself to injury. Any kind of accident claim can lead to higher insurance rates. Read more…