Q.) What factors can affect the cost of my automobile insurance?
Q.) What are some practical things I can do to lower my automobile insurance rates?
Q.) Suppose I lend my car to a friend - is he/she covered under my automobile insurance policy?
Q.) What should I consider when purchasing automobile insurance?
Question:
What factors can affect the cost of my automobile insurance?
Answer:
A number of factors can affect the cost of your automobile insurance -- some of which you can control and some that are beyond your control.
When an insurance company is deciding whether or not to offer automobile insurance to a potential customer, it will want to know about the person's previous driving record, whether they have any recent accidents or tickets, and what type of car is to be insured.
Insurance companies have different programs for different customers. Adults with good driving records will generally pay less for auto insurance than will a young driver with traffic tickets. In order to determine which program you qualify for, an insurance company needs basic information about you.
In addition to your age, gender and driving experience, information about the vehicle you drive, and how you drive it, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a sub-compact; and, someone who commutes 30 miles each way is more likely to be in an accident than someone who rides the bus to work and drives only on weekends.
Even your marital status can affect your cost of insurance. Statistics show that married people tend to have fewer and less costly accidents than do single people.
Question:
What are some practical things I can do to lower my automobile insurance rates?
Answer:
There are a number of things you can do to lower the cost of your automobile insurance. One of the easiest things you can do is to contact an independent agent, like Hempkins Insurance, to obtain quotes from several different insurance companies.
It is not uncommon to find quotes on automobile insurance that can vary by hundreds of dollars for the same coverage on the same car. When you shop, be careful to make sure each insurer is offering the same coverage.
Another way to lower the cost of your automobile insurance is to look for any discounts for which you may qualify. For example, many insurers will offer you a discount if you insure multiple cars under the same policy, or if you have had a driver education class in the last five years. Be sure to ask us about their discount plans.
Another easy way to lower the cost of your automobile insurance is to increase the deductible. Simply raising your deductible from $250 to $500 can lower your premium sometimes by as much as five or ten percent.
Question:
Suppose I lend my car to a friend - is he/she covered under my automobile insurance policy?
Answer:
Whenever you knowingly loan your car to a friend or an associate, he or she will be covered under your automobile insurance policy.
Question:
I have an older car whose current market value is very low. Do I really need to purchase automobile insurance?
Answer:
Most states have insurance laws that require drivers to have at least some automobile liability insurance. These laws were enacted to ensure that victims of automobile accidents receive compensation when their losses are caused by the negligent actions of another individual.
It is often the case that the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just "total" the car and give you a check for the car's market value less the deductible. Many people with older cars may decide not to purchase any physical damage coverage.
Question:
What is the difference between collision physical damage coverage and comprehensive physical damage coverage?
Answer:
Collision coverage is defined as losses you incur when your automobile collides with another car or object. For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage.
Comprehensive coverage addresses most of the other types of direct physical damage losses you could incur, including theft. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage.
Question:
What should I consider when purchasing automobile insurance?
Answer:
There are a number of factors to consider when purchasing any product or service, and insurance is no different. Here are some things to consider when purchasing automobile insurance.
Base your decision on value: This is more than simply the lowest price. It also involves the policy service, advice, claims and protection that you receive from your agent and insurance company. Independent agents - like Hempkins Insurance - and the companies we represent, deliver excellent value.
Purchase the appropriate amount of liability coverage: The amount of insurance you need varies from individual to individual or family to family and will change over the course of your life.
Decide which, if any, optional coverages you want/need: For example, do you want or need additional physical damage coverages or is the market value of your car too low to warrant purchasing them.
