How
does where I live affect my premium?
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Where your car is
kept directly affects your chances of having an accident or becoming a
victim of theft or vandalism. The likelihood of encountering these problems
increases in larger, more densely populated cities, while such incidents
remain relatively low in rural areas.
Additionally,
regional insurance, rates are affected by time and efficiency of police
response and law enforcement, local road and traffic conditions and the
quality of local medical services. Insurers even factor in the litigation
rates in a given area (how many lawsuits are filed, go to trial, are settled
out of court and for how much.) |
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Do
all states require some kind of liability insurance?
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No.
While not all states require auto insurance, some have "financial
responsibility laws” mandating all drivers must be able to pay for any
damage or injury they may cause. However,
liability insurance is
still the best way for you to meet your state's financial responsibility
requirements.
UM and UM policies
are offered by law in all states, including no-fault states. In fact, some
states require all motorists to carry this coverage in order to gain
protection from inadequate insurance coverage of other drivers. |
How
do I keep my insurance company from canceling my policy?
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Besides maintaining a clean driving record, consider
investing in special safety and security features for your car. If you have
been in an accident, consider taking a defensive driving course. Your
insurance agent may be able to provide other tips. |
What
happens when I loan my car to someone? Is that person covered by my policy?
Am I still covered?
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Yes. Liability
and coverage for physical damage (i.e., comprehensive and collision) always
follow your car.
So, if a friend borrows your car and has an accident. you're still
protected against the cost of damages or injuries. Plus, if the driver of
your car is insured, his/her policy will also be available to cover the cost
of damages and injuries.
The same rules apply
when you borrow someone else's vehicle -- your own insurance follows you no
matter whose car you are driving. But the vehicle owner's policy is the key.
coverage if you have an accident. |
Am I
covered for natural disasters or "Acts of God"
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Comprehensive insurance. which covers you for fire and
theft, generally covers you against damage by flood. Earthquake, hail and
other natural perils. except when your car is overturned (which is
technically considered a collision). If you have specific concerns about the
safety of your vehicle in natural disasters, contact your agent for
information on catastrophic coverage. |
How can I challenge my insurers if they refuse to cover a claim?
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Usually,
insurers that refuse to cover a claim have a strong legal reason for doing
so -- even if you disagree. First,
contact your agent if you feel you are being treated unfairly because your
agent is your strongest advocate in insurance matters. But if it is a legal
problem. you may have to hire a lawyer.
Talk to your
agent if you have a problem with your insurer, and talk to your state
insurance department if you want more specific information on state
regulations and legal precedents. |
