Insurance 101 Answers

• What are the guidelines for a low mileage auto insurance discount?

  Low mileage auto insurance – also known as Pay As You Drive (PAYD) insurance – is offered only in certain states and by certain companies. If you are interested in obtaining PAYD car insurance, contact the Insurance Department in your state for a recommended PAYD insurance company. P ...

• What if I cannot get auto insurance coverage?

  Keep looking. With all but two states – New Hampshire and Wisconsin – requiring mandatory car insurance, to legally drive you must carry proof of auto insurance coverage. If you're having difficulty in finding a carrier it's because you're viewed as a high risk driver. This term, or ...

• How can teen drivers save money on auto insurance?

  That's a good question, as teen drivers tend to get hammered by high insurance premiums. But, that's not because car insurance companies are evil entities set on destroying your teenage years. Rather, it's because history shows that younger, inexperienced drivers are involved in a higher rate of ...

• Will an auto insurance company check my driving record every time I renew insurance?

  An insurance company can scan your driving record at any time. But, in general, your driving record is most likely to attract the scrutiny of your car insurance company when: You add a vehicle to your current auto insurance policy. You apply insurance renewal. You initially apply for car insura ...

• How do auto insurance providers define a low risk driver?

  Car insurance companies don't have a single way to define what constitutes a low-risk or preferred-risk driver. Rather, they evaluate a number of insurance risk factors that contribute to a composite of the ideal driver; meaning, a driver that won't cost a lot to protect in terms of car insuranc ...

• At what age will my auto insurance rates decrease?

  A number of different factors are used to determine auto insurance rates, all of which suggest whether or not a person is statistically more likely than average to make a claim on an insurance policy. For example, younger drivers pay more than older drivers because their inexperience makes them ...

• How do I file a complaint about my auto insuance company?

  Once they've done some comparison-shopping to find the best auto insurance rates, many people don't give their car insurance policy a second thought. However, if you need to file an insurance claim after an auto accident, you may find that you are having problems dealing with your agent. If you ...

• How can senior drivers save money on auto insurance?

  Be sure, if you're a senior driver, to ask your car insurance company about discounted insurance rates. You'll be surprised at how many discounts exist when they sense you may be shopping around. Learn How Senior Drivers Can Get Affordable Insurance Each auto insurance company has different poli ...

• For how many years will an auto insurance company review my driving record?

  That depends on a few factors, as you'll see. How Car Insurance Companies View a Driving Record Your auto insurance company may have a different policy than other carriers about how many years they look into a driver's past, and account for any indications of a car accident, traffic ticket, spee ...

• Can an auto insurance company raise my rates for credit history problems?

  Yes, it can. But, don't be frightened if you've had some late credit card payments recently that could lead to a poor credit score. It's unlikely your premiums will experience a large jump at renewal time simply due to this. That's because car insurance companies determine whether to issue a pol ...

• What should I do if my auto insurance company considers me a high risk driver?

  Unfortunately, your options may be limited if your auto insurance company places you into this category. But, you can try a few actions to lower your high risk insurance rates; see below for details. Dealing with a High Risk Insurance Classification Talk to other auto insurance carriers. Just be ...

• How do I get the most of my auto insurance policy?

  When purchasing a personal auto insurance policy, you might be tempted to purchase the least amount of auto insurance required in your state, thinking that to purchase less insurance will save you money. This, however, is a mistake many drivers come to regret once involved in an accident, natura ...

• Do I need to buy rental car insurance?

  When you rent a car from a car rental agency, you have the option of purchasing renter’s insurance at the counter. However, prior to purchasing rental car insurance, contact your personal auto insurance provider to see if car rentals are covered under your personal policy. NOTE: If you use ...

• What factors should I consider when buying car insurance coverage?

  That's a great question. There are plenty of car insurance companies around. So, how do you find the one that's best for you? Let's take a look at some aspects to evaluate. Car Insurance Rates: The Top Factor Of course, price is the most important consideration. You need to find auto insurance y ...

• Can I switch car insurance companies at any time during my auto insurance policy term?

  Sure. Most car insurance companies allow you to cancel your insurance policy at any point during your term. Be aware, though, that some auto insurance providers will charge you a minor fee for doing so. (They'll usually attribute to it administrative costs.) But, even with that fee included, it ...

• Why is it better to insure more vehicles on one car insurance policy?

  Well, it's not always better. But, it can be. Multiple-Car Insurance Discount As an incentive for you to insure all your cars with their company, many insurance carriers will give you a minor discount if you insure more than one vehicle on the same car insurance policy. Doing so can save the ins ...

• Do I need to insure all the drivers in my household?

  Most car insurance companies will want to know all the licensed drivers who live in your home. Why? Because there's a reasonable possibility they may hop behind the wheel of your car(s). To an auto insurance carrier, insurance is all about measuring risk. It's difficult, for a carrier to accurat ...

• Why should I buy a new auto insurance policy before cancelling my old one?

  For starters, you don't want to go a single day without car insurance protection. Not only may driving without auto insurance put you in conflict with your state's laws, but also it could result in a financial disaster if you cause an accident. This applies even to those who don't drive their ca ...

• What are the benefits of having a high car insurance deductible?

  When getting a car insurance quote comparison, you may find yourself wondering how a deductible affects the premiums you pay. You should always get quotes from more than one auto insurance agency when shopping for a new car insurance policy. To make accurately compare car insurance quotes, howev ...

• How does an auto insurance deductible work?

  When purchasing car insurance, it’s important to make sure you understand how insurance deductibles work. Note that deductibles apply to collision and comprehensive insurance. Liability insurance polices do not have deductibles, as they only pay for damages you have caused to another perso ...