Getting an insurance on a new or a used car can sometimes seem confusing. This article covers some questions that you may have regarding the same.
After purchasing a car, you are expected to get it insured, so that any incident leading to a financial loss can be claimed under it. Since your car may be one of the biggest purchases of your life, you should insure it for protection from any misfortune.
Car Insurance Q & A
Here are some questions that will help while opting for a car insurance scheme, most suited for your car, and your budget.
Is another person besides me, who drives my car covered under the car insurance schemes?
Usually, the person on whose name the car is insured and his spouse are the only ones entitled to use the car. This is why it is necessary that you enlist the names of all your family members on the insurance policy, and read the policy carefully.
Why is it necessary to get my car insured? What if I don’t get it insured and still drive the car?
This question can have different answers for every state. In some states, driving an uninsured vehicle is dealt with stringent laws and heavy penalties. Further, if you cause an accident and harm some other party, you may have to pay for all the charges of medical services and auto repairs for the other party. Having an awareness about such laws in your state is very important.
Is my driving record an important parameter for deciding the car insurance premium?
Yes, it is. The driving record of the owner of the vehicle is an important factor for the insurance companies to cover the vehicle under specific insurance plans. Insurance companies collect data from state offices to find out if you were ever involved in an accident, and set your premium accordingly.
Which is better? A Comprehensive Coverage or a Collision Coverage?
Both, the comprehensive and collision coverage are good plans, so most people insure their cars for both. The collision scheme covers your and the other party’s car for accidents, whereas the comprehensive scheme covers cases of theft and fire.
Questions to Ask your Agent
- What are the rates of car insurance in my state?
- What do I need to know when buying a car insurance?
- What benefits does your company offer? How are those different from other companies?
- Is my pet insured if it is traveling with me in my car?
- Can the insurance protect me from lawsuits in case of accidents?
- How does the insurance company determine the value of my car?
- Is it possible to over insure my car?
Car insurance is important for every car owner, and one must make an effort to find a suitable plan to keep themselves and their family safe on the roads.