Shopping for auto insurance can seem like an overwhelming chore. You must have it but there are so many options from which to choose. You are terrified you will make the wrong choice and wind up with a useless but expensive policy. Use these frequently asked questions (FAQs) to guide your decision.
WHAT TYPE OF COVERAGE DO I NEED?
This will depend on several factors including whether you own your car or not. If you have a car loan, the financial institution administering your loan will dictate the type of coverage you must have which is typically full coverage until the loan is paid. Similarly, if you lease a car, the leasing agent will determine the amount of coverage you must maintain – this is also usually full coverage. Full coverage consists of liability, collision, and comprehensive insurance. When you own your car outright, you have the discretion of deciding what type of coverage to get which is often based on how much you drive your car and where you drive it.
WHAT IS THE MINIMUM COVERAGE I CAN GET?
Typically you are permitted to obtain only liability coverage. This type of insurance will pay for medical expenses and vehicle damage to other parties if you cause an accident. It does not cover your own costs associated with an accident at which you are at fault. The exact amount you must be insured for is determined by your state’s law.
CAN MY TEENAGER GET COVERAGE?
Teenage drivers can get coverage but have to pay higher premiums. To get lower rates, your child should complete a driver’s education program. Students who excel academically can also get “good student” discounts which will help lower the costs.
DO I HAVE A SAY IN WHAT MY DEDUCTIBLE WILL BE?
To some extent you do have the ability to determine your deductible. If you want a really low premium, you will be required to pay a higher deductible. But if you want a low deductible as well as a low premium, you must maintain a clean driving record and good credit. The car you are insuring should be low risk for theft and damage based on make and model as well as where you live and work.
HOW SOON DO I GET PROOF OF INSURANCE?
As soon as you are approved and make your first payment, you will be given proof of insurance. This is especially simple when you use quotes to get online auto insurance. You can print your proof of auto insurance after your application has been approved and signed electronically.