When you’re shopping around for auto insurance, it’s very important that you ask your potential insurance provider some questions. Auto insurance estimation is very different from establishing your homeowner’s insurance costs. This will ensure that you not only understand the limitations of your policy but that you also get the cover that you need to remain insured in the event of an accident.
Here are some of the questions that need answering before you sign on the dotted line…
1. What type of coverage do I need?
Different states have different requirements in terms of the minimum auto insurance coverage you need to have. Car insurance coverages and limits that work for a friend or family member that lives in a different state might not be right for you.
However, although several insurance policies are not compulsory in your state, they still come highly recommended. These include towing and roadside assistance, GAP cover, comprehensive cover, and more. There are 4 basic types of coverage that may be mandatory in your state. These include:
- Bodily Injury Liability
- Property Damage Liability
- Personal Injury Protection (PIP or No-fault)
- Uninsured/Underinsured Motorist Protection
2. Am I protected against accidents with uninsured or underinsured drivers?
More than 12% of all drivers are either underinsured or totally uninsured. Discussing UM and UIM cover with your potential insurance carrier is vital to avoid a situation where another driver’s liability cover is inadequate to pay for your medical bills and repairs.
3. Who will my policy cover to drive my car?
This is a question that many people fail to ask. Imagine for a moment that your 16-year-old child or a friend wants to borrow your car. What happens when they are in an accident? Insurers have different ways of handling this, so it’s extremely important to get to the bottom of how you will be covered in the event of an accident when someone else is driving your car.
4. Can I qualify for any discounts?
There are several auto insurance discounts that you are able to qualify for all across the country. You can also check online resources such as this handy online banking information guide and be sure that insurance companies do want to keep your business. These types of discounts can either be driver-specific, vehicle-specific, or policy specific.
To qualify for discounts, insurers will check details such as your driving history, whether or not you belong to certain organizations, your age, occupation, and whether or not you maintain low mileage on your vehicle.
Other factors that could make you eligible for discounts include completing an accredited driving course or even adding extra safety features to your vehicles, such as a backup camera, automatic seat belts, river-side, and passenger-side airbags, and anti-lock breaks, and more.
5. If my car is totaled, how much will my insurance pay?
This is a very important question to address with your potential insurance carrier. If you don’t iron out this detail with an insurer, you might be in for a massive shock when you try to make a claim in the unfortunate event of your car being a total loss.
Some insurance companies pay out the “actual cash value” (ACV) of your vehicle while others will pay out an “agreed value” when the vehicle is a total loss in an accident. ACV guarantees the policy will pay the full insured amount of the vehicle.
Agreed value simply means that you and your insurance company have come to an agreement on the value of the vehicle – and this is the amount that will be paid out.