Common Auto Insurance Questions

auto insuranceCar owners face a myriad of concerns and questions concerning their insurance policies. New as well as experienced owners often try to find answers but face confusing industry terms that only create more confusion. Being aware of the right information can significantly reduce the stress related to this issue.

Should I Contact An Agent If A Minor Accident Occurs?
Drivers should contact their insurance company even if the accident features little to no damage. If may not be considered a top priority over serious accidents but it is important to inform insurers about the event. If another vehicle is involved, always remember to exchange information with the other driver should further problems occur due to the accident.

Does My Previous Driving Record Affect Coverage?
Insurance companies carefully review driving records before accepting a new policyholder. Good records with no incidents are viewed more favorably and customers are allowed to modify sections of their coverage. Any driver with a serious history of infractions could face a complete denial. Those who do receive a policy could face strict terms and conditions. They will also face much higher rates that could decrease if they work towards creating a safer record.

Can I Drive Without Insurance?
Many car owners think that auto insurance is not a requirement. In a majority of states, laws are in place that require every driver to have a policy with minimum amounts of coverage. State insurance agencies have the most up to date information about current regulations in place. Their websites feature detailed contact information for additional questions.

Are Used Vehicles Less Expensive To Insure?
Used vehicles carry their own set of standards that each company must evaluate. Most guidelines closely match those of new vehicles in the same category such as a safety features. The latest advances available on current vehicles offer insurers more security which could mean lower rates. Any used models closely matching those requirements should also see a favorable premium over time. Visitors to cashclunkers.com know the great selection of choices that come with a low rate for insurance coverage.

Does The Age Of A Driver Matter?
Companies are very concerned about younger drivers as well as older drivers. These two categories contribute to a great deal of accidents each year. For that reason, insurers will often impose high rates to cover the higher possibility that a claim will be filed. According to the Los Angeles Times, “Each insurer devises its own set of parameters to predict risk.” (URL: http://articles.latimes.com/2011/may/22/business/la-fi-perfin-20110522) Older drivers may also be subject to yearly exams that cover issues such as quality of vision. Policies may be dropped if someone fails to give correct facts or information concerning their health.

Auto insurance is something that every driver must have. It can be a confusing subject that creates many questions for any car owner. Knowing the answer to important coverage questions can mean the difference between a great rate with the right amount of coverage and paying too much for a policy.

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