Common Questions for Auto Insurance

Everyone needs a car insurance policy to drive legally in all the states of the USA. Car insurance is not important because it is mandatory but it is also important to cover the cost of damages due to theft, vandalism, and accidents. Before purchasing auto insurance policy there are many questions in the minds of the people. MyMoneyMyQuotes team provides you the details of some common questions for auto insurance that people may ask before purchasing an auto insurance policy.

• Is driving without car insurance illegal?

Yes, it is illegal to drive car insurance without having a car insurance policy in all the states of the USA. It is the most common question for auto insurance and people may also want to know how much car insurance is mandatory to purchase.

• What does my auto insurance cover?

The auto insurance policy covers you, your vehicle, and other parties involved in an accident.

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• What happens if I do not purchase an auto insurance policy?

The state may charge fines and cancel your license if you are caught driving without having an auto insurance policy.

• Is the minimum auto insurance coverage limit required by the state is sufficient?

People generally ask that it is enough to purchase a minimum car insurance coverage limit which is mandatory to purchase according to the state. Minimum auto insurance coverage required by the state is sufficient to drive legally in the state. If the cost of damages may exceed the coverage limit of your minimum insurance policy then you will have to pay for the damages from your pocket. So we recommend buying more than minimum auto insurance coverage.

• Are there different types of auto insurance coverage?

People ask their car insurance agents about the types of auto insurance coverage before purchasing a car insurance policy. Following are the different types of auto insurance coverages:

• Bodily liability coverage
• Property damage liability coverage
• Comprehensive coverage
• Uninsured motorist coverage.

People also ask which type of coverage is optional and which is mandatory to purchase. It is the most common question for auto insurance asked by every customer before purchasing auto insurance.

• Can I change my auto insurance coverage whenever I want to change?

Yes, you can change your auto insurance coverage but you need to pay cancellation fees.

• What is an insurance deductible?

An insurance deductible is the amount of money paid by you when you file an insurance claim before your auto insurance company pays you for the recovery of losses.

• Can I include anyone on my auto insurance policy?

Yes, you can include your family members on your auto insurance policy if you are living at the same address.

• How expensive is the auto insurance policy?

The cost of an auto insurance policy is calculated by considering your driving history and credit record. It varies from person to person, state to state and company to company.

• What happens if I forgot to pay my auto insurance premium?

If you forgot to pay your auto insurance premiums the first time then your car insurance company sends you a warning notice. If you do this again then the car insurance company can cancel your policy.

• Does gender affect my car insurance policy?

Yes, gender difference will affect the cost of the auto insurance policy. But some states restrict the car insurance providers to consider gender differences while calculating the auto insurance premiums.

• Do I need an auto insurance policy if I do not own a car?

If you drive a rental car or car of your friends or others frequently then you need to purchase an auto insurance policy. You can purchase only a basic auto insurance policy. You do not need to purchase comprehensive coverage and collision coverage if you do not own a car.

• Does credit score affect auto insurance premiums?

Yes, the credit score of the driver affects the cost of the auto insurance policy. The poor credit score increases the cost of the auto insurance policy.

• Can I get discounts on auto insurance policy?

You can get discounts on the auto insurance policy if you have a good driving history and a good credit record.

• Does my auto insurance cover a rental car?

Yes, auto insurance policies in most cases cover your rental car if you drive you’re your rental car for personal use. If you drive your rental car for business purposes then your auto insurance policy does not cover your rental car.

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