Auto Insurance Frequently Asked Questions

It is normal that you would have a few questions about your coverage, policy or insurer. It is difficult find a personalized answer for them but you can find out the position in general terms. If you want specific replies that apply to your personal circumstances you should talk to your insurer directly or ask a broker to have a look at it for you.

Here are a few commonly asked questions and answers

What Happens If I Get Caught Driving Without Insurance?

Every state has own regulations and laws governing driving. But every state requires drivers to be insured for possible liabilities that arise from causing damages and injuries to third parties. There will be fines and penalties for not having this cover. Their severity depends on where you live.

You may have to pay hefty fines or your automobile may be taken from you until you arrange coverage. If you caused an accident and damages already you may even end up in jail as well as losing your driving license. Furthermore, you will face the third party claims on your own.

Does my Policy Cover Everyone Who Drives my Car Automatically?

Standard policies cover occasional drivers of insured vehicles. However it is not uncommon to see exclusions on policies and some people must be included in the policy beforehand especially the people who live in the same household.

You need to make a distinction between occasional drivers and people who have access to your car. The people who live with you may be considered having regular access to it and required to be included in the policy. You should call your carrier and ask the exact position.

What Is a Good Level of Liabilities Coverage?

There is too much talk about minimum auto insurance requirements. These amounts are the lowest you can go down and they are not relevant to most motorists. Some of the limits are far too low to even consider and most people go well over these figures.

Quite a few companies offer package policies these days that have million dollar liabilities cover limits. This is what you should aim to get considering how expensive medical treatments and the likelihood of being sued. This is not one of the areas you should try to save money.

Can I Take my Car to Body Repairer of my Choice to Fix Insured Damages? 

You can get quotations for the repairs. If your chosen garage can repair the damages at about the same price as insurance company approved body repair shop there shouldn’t be a problem. However, the company can rightfully refuse to pay the difference if your preferred mechanic is charging a lot more. You may have the choice to pay the difference yourself.

What Is Diminished Value and How Does It Affect Claim Payments?

This is a hot subject after courts decided that repairing a car after an accident alone doesn’t return it back to its previous value. Vehicles lose value once they are involved in an accident. So, motorists may be able to claim a little bit more on top of repairs. This is especially true when you are hit by a third party as your losses are due to their fault.

When my Car Insurer Can Cancel my Policy or Refused to Renew?

Although some people believe companies cannot cancel your policy, this is not true. When they discover that you haven’t been telling them the truth they can cancel your policy and even take a criminal action against you. Common cases are giving a different address than you actually live, not mentioning another driver in your household or not telling about traffic violation tickets.

Also, most companies will cancel your policy as soon as they learned that you were caught driving while drunk. They wouldn’t tolerate the risk of insuring a drunk driver. Furthermore, you may lose your licence after the incident and cannot drive anyway.

Can Aftermarket Parts Be Used to Repair My Auto by My Insurer?

If the company discusses this with you and disclose the parts used in repairs they can use them. Also, some policies may include wording that allows companies to use aftermarket parts. If you don’t want it to happen you need to ask these questions when you are arranging coverage.

In any case, you should be asking questions and clarifying the position before buying coverage. There is nothing wrong with not knowing but not asking is not a smart move.

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