Welcome to Auto Insurance Quest. We help you learn about Auto Insurance in United States.

Be A Powerful Consumer by Being a Knowledgeable Consumer

There are situations when you give a call to your car insurance company when your vehicle suddenly breaks down. You call the insurance company for some towing assistance. Your auto insurance policy provides a rental car and even covers the entire damage caused to the vehicle when the vehicle arrives at a repair shop. It is always beneficial to get an auto insurance policy. It helps you in complying with the state laws and protects you from the unavoidable. This is a modern world with thousands of people driving their cars to work on a regular basis. In this world, accidents seem to be inevitable. They do not occur often but they do happen. A close scrutiny of auto insurance FAQ will help you in grabbing complete knowledge about an auto insurance policy. Go through the information provided below:

Does an Auto Insurance Needs to be Purchased?

Almost all states in the United States of America need drivers and individuals owning or driving a car to buy an auto insurance. Insurance policies serve as a proof of the financial responsibility of the car owner associated with the usage of the car and with driving the car on public road. As a car owner, it is mandatory for you to provide a valid proof of the financial responsibility that you owe in the form of an asset if you do not want to purchase an insurance policy. The asset helps you in playing claims if you are reason behind an accident. It is mandatory for you to take liability insurance irrespective of the state that you live in.

What are the Costs Involved in Getting an Auto Insurance?

Each state in the United States has a certain set of regulations and rules in regards to auto insurance. These rules also include the amount that needs to be paid for getting a vehicle insurance. Liability policy tends to be mandatory in every state. Liability policies generally cover the entire amount that you need to pay in case some other individual suffers from property damage or injury due to an accident where you are at fault. These policies do not cover the damages made to the property that you own and medical payments. You get the option of prolonging the entire coverage for providing financial support for yourself by way of other policies like personal injury protection, collision, rental and comprehensive reimbursement.

What are the Different Types of Coverages?

There are different varieties of auto insurance coverages. Most of them are optional while there are others required by the law. Most states in the United States of America require the car owners or the drivers to buy a liability coverage of minimum amount. If you happen to live in a state where there are no-fault laws, you might have to buy personal injury protection or no fault coverage. It is a coverage which gives you the flexibility of filing claims with your own insurers for paying medical costs which are associated with the accident irrespective of the fact that who was actually at fault. Underinsured or uninsured motorist coverage might also be needed by the state but this is completely optional. There are other varieties of optional coverages and they include comprehensive coverage, collision coverage, labor and towing coverage and rental reimbursement coverage.

How is the Premium Determined by the Insurance Company?

There are a number of factors which are considered by the insurance company in determining your premium. The most prominent factors which are taken into account include:

  • Car varieties
  • Driving record
  • Crime rate in the neighborhood
  • Age
  • Distance covered by the car on a regular basis
  • Coverage types bought by the car owner
  • Profession of the owner or the driver

Auto insurance companies also consider the present credit ratings of the car owner when determining the premium for the policy. Here, it is important to note that there is a kind of correlation between possibility of missing the payment of premium and the credit score of an individual. There are discounts offered by the insurance companies for reducing premium. However, eligibility requirements tend to vary. Discounts are also offered on policy bundling. This means that you buy home insurance and car insurance from the same company.

What if an Individual is not Able to Find Auto Insurance?

You do not need to worry at all in case you have applied for auto insurance and your application has been turned down due to certain factors like driving record. You can still use the other options which are readily available. You have the option of either purchasing an auto insurance policy from non-standard insurers or joining a risk pool that is state assigned. A risk pool that is state assigned consists of different insurers in the locality who are required to take active part in percentage of the voluntary business that they accept. Due to this, insurers need to accept the motorists which are assigned directly to them and then frame policies for the motorists accordingly. The premiums for such policies are generally very expensive. The non-standard insurers also have the ability of writing policies. These are private insurers who write policies for the motorists with a history of major accidents. Both these options tend to be very expensive but they are the one and the only medium for car owners with poor driving history until their situations improve.

What is the Difference Between Cancellation and Non-Renewal of an Auto Insurance Policy?

As a car owner, you can always choose not to go for the renewal of your insurance coverage post it expires owing to a number of reasons. It is completely your choice not to go for policy renewal in case you get hold of a better policy with some other company or if you are not happy with services provided by your present insurance company. On the other hand, even insurers might choose not to renew the policy you hold. This mainly happens when you do something that increases their risk of covering you substantially or if the company decides to provide fewer policies in the area that you live. Policy cancellation is more serious. Insurers do not have the right of cancelling their policies which has been active for not less than 60 days. However, their policies get automatically cancelled if they fail in paying the premiums; defraud the insurance company or have a revoked or suspended driver’s license. Policy cancellation makes it difficult for you to get hold of another auto insurance policy in the near future. You might end up purchasing a very high-risk insurance policy at an expensive premium.

What Happens if the Insured are Not Happy with their Insurers?

The insured have full rights in the form of a consumer. In case, an insured is not satisfied or happy with his or her agent, the insured has got the rights to inform the insurer about the same. If the complaint remains unchecked, it is the insured’s duty to check for a department that takes in consumer complaints and file a proper complaint with this department. However, if the issues still remain unsolved, the state insurance department can be contacted. This department works towards protecting and educating the consumers about different types of insurance policies. The department possesses the capability of providing car owners and drivers with resources and help required for taking their complaints to the next important level. This department also helps the owners in getting hold of new insurers. The department can easily be contacted either by phone or online.

What is the Correct Method of Comparing Vehicle Insurance Quotes?

It can be very confusing to look out for different vehicle insurance quotes. It is necessary for you to follow a step by step procedure in determining the best insurance policy that fits your requirements. It is necessary that you compare auto insurance rates with the other top insurance companies for determining the best price which is being offered in the market.

How to Lower Vehicle Insurance Costs?

There are a number of significant things that can be done for lowering the costs of auto insurance. The car that you drive greatly affects the premium payments. You might always consider driving a slightly older and safer car in order to lower your costs of auto insurance. You can always go for a car that is less valuable or you can even think of switching your cars which would automatically lower the cost of auto insurance. You also have the option of modifying your car in order to lower risk or make it safer by including anti-theft features or tools such as anti-lock brakes. Apart from this, you can also go for a deductible that is higher and make sure that the coverage that you take does not drop. This also helps in keeping the costs of auto insurance down. Bringing about some changes in driving habits can also help in lowering the vehicle insurance costs. These are some of the most significant and most common auto insurance FAQs answered and these can probably help you in finding the best auto insurance policy.

Auto Insurance In Your State

Delaware Ohio Colorado
Armed Forces Europe California Wisconsin
North Carolina Armed Forces Pacific Massachusetts
Alaska Pennsylvania Oklahoma
Texas New Jersey Idaho
Nevada Indiana Florida
Maine Kentucky New York
Arkansas Utah Connecticut
Vermont Kansas Armed Forces Americas
North Dakota Iowa Maryland
Hawaii Rhode Island Montana
South Dakota Wyoming West Virginia
Missouri New Mexico Oregon
Georgia Virginia Illinois
Alabama Louisiana New Hampshire
Nebraska Tennessee Washington
Washington DC Minnesota Arizona
South Carolina Michigan Mississippi

About Us

We strive to provide you with all information that you need to understand auto insurance. Find out what coverages you need, which companies provide them and how to compare these. You will also find latest news and updates here.