Auto Insurance FAQs

Q: Where Can I Buy Insurance?

Answer:     You can buy insurance through your local insurance agent and through insurance companies that sell through their own employees, over the phone, by mail and over the Internet. Consult your state insurance department, the yellow pages of your phone book, and friends or relatives for the names of insurance companies doing business in your state.

Q: How Can I Save Money?

Answer:
* Shop around
* Before you buy a car, compare insurance costs
* Ask for higher deductibles
* Reduce coverage on older cars
* Buy your homeowners and auto coverage from the same insurer
* Take advantage of low-mileage discounts
* Ask about group insurance
* Maintain good credit
* Seek out safe driver discounts
* Inquire about other discounts

How Much Coverage Do I Need?

Answer:     Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. If you’re found legally responsible for bills that are more than your insurance covers, you will have to pay the difference out of your own pocket. These costs could wipe you out!

How Do I Insure My Teenage Driver?

Answer:     As soon as your teenager begins to drive, notify your insurance agent that there will be an additional driver in the house. Since teenagers are inexperienced drivers, they tend to get into a lot of accidents. This will, unfortunately, be reflected in higher insurance rates. If you have a daughter, you can expect your insurance to go up as much as 50 percent. A son will increase your car insurance by as much as 100 percent. Consider also raising liability limits or buying an umbrella liability policy for additional protection.

What Can I do if I Can’t Find Coverage?

Answer:     There may be several reasons why you can’t get insurance through traditional private insurance companies:

• You have a poor driving record
• You own a special, high performance car
• You have not driven long enough
• You have not owned your car very long and therefore have no insurance record
• You live in an area where theft and vandalism losses are high.

In this case, you have two options:
* Join a State Assigned Risk Pool
* Get a Policy From a Private Insurance Company that Specializes in “High Risk” Drivers.

Informaton Provided By Insurance Information Institute
http://www.iii.org