Aside from those who work in the insurance industry, many people do not know much about their insurance policies. To help you grow more confident in your understanding, here are some frequently asked questions about car insurance.
Is getting a car insurance quote difficult?
No, as most companies offer online quotes that you can get within minutes after filling out a simple form.
What things will car insurance cover?
This depends on the level of coverage you opt for. Every state has a specific minimum coverage amount that you must carry on your vehicle, but you will want more coverage than what is required to sufficiently protect you and your vehicle. Options include: bodily liability, property damage liability, comprehensive, collision, and uninsured and underinsured motorist coverage.
Can I lie about my driving history to get a discount?
It certainly isn’t advisable. Your driving record is public information that the insurance company can access and then use to deny any claims you make on the basis of fraud.
How risky is it to not get insurance?
Should you get into an accident, you could lose a lot in a lawsuit and face jail time, making it risky to forego insurance. If you’re pulled over for a traffic violation and found to be driving without insurance, you could have your driver’s license or vehicle registration suspended and will likely face a hefty fine.
Who can I put on my policy?
You can add those who live at the same address as you and who have a valid driver’s license.
If I forget a payment, what can happen?
Every insurance company has their own policies regarding late payments. In most cases, they will send you a notice the first time a payment is missed. For future missed payments, they may continue to contact you, issue late payment fees or outright cancel the policy.
Can I use my insurance as a tax deduction?
This depends on what your vehicle is used for. However, in the majority of cases, the answer is no, auto insurance is not a tax deduction.
Are car insurance companies allowed to deny service?
Yes, insurance companies can deny drivers coverage if they have certain offenses on their record, have poor credit or have been the cause of a major accident.
Do care insurance companies share information?
Yes, car insurance companies share claims histories with each other.
If you have more questions about car insurance, speak with your insurance broker.
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