Insurance Basics

Auto insurance protects you from financial loss if you are involved in a traffic collision or accident. No matter what your personal circumstances are or what kind of vehicle you drive, if you are planning on driving or riding in a car regularly, you need to keep yourself safe in the event of a moving collision. You can avoid a lot of financial hassle down the road by doing the needed research now. After all, that’s what auto insurance is for—planning ahead.

At Save Today Auto Insurance, we provide comprehensive online auto insurance coverage information for busy people on the go, and answers for those who are new to the auto insurance industry. Here are some common questions that vehicle owners often ask before buying auto insurance.

Auto Insurance Q&A

Q: How do I choose an auto insurance company?

A: You should always do research before choosing an auto insurance company. The easiest way to do this is to compare car insurance quotes online.

Q: Will I be able to drive without car insurance?

A: You may not drive legally without car insurance, no matter what state you live in. If you are pulled over while driving without car insurance, you will be fined, and your car may be impounded. Ironically, you may actually receive higher auto insurance quotes in the future, when you are ready to purchase insurance.

Q: What protections do basic car insurance policies provide?

A: When buying insurance, there are many different options to choose from, including property damage liability, bodily injury liability, personal injury protection, collision insurance, under/uninsured motorist insurance and comprehensive insurance. Which you are required to buy depends on what state you live in. Comprehensive policies cover any damage, no matter who is at fault in an accident.

Q: How will my driving history affect my auto insurance quotes?

A: If you have a clean driving history, with very few collisions and traffic violations, you will be rewarded with lower auto insurance quotes. This is because auto insurance companies see you as a low risk. On the flip side, if you have multiple moving violations, you will be seen as a high risk.

Q: How much coverage do I need to purchase?

A: The minimum coverage needed depends on what state you live in. You should plan on buying more than the minimum amount, however, because accidents are so costly. If you get into a collision and do not have enough insurance to cover the damage, you will have to pay for the damage yourself, which will cost you much more—especially if there are hospital bills involved. Paying for damages and injuries out of pocket can potentially lead to financial ruin. 

Q: What information will car insurance companies need from me?

A: Insurance agencies will need to know the year, make and model of your car, your driving history, your address, your social security number, credit history, and other pertinent information that will help them calculate a quote. Your age, gender and other information all play a factor in your car insurance quote.

Q: Do I need insurance if I am only driving part-time?

A: Yes, if you are planning on driving at all, you need car insurance.  However, you may want to ask a provider about special part-time driver insurance.

Q: Do I need to purchase rental car insurance if I am planning on renting a car?

A: It is highly recommended that you have rental car insurance. Many states do not require insurance policies to pay for rental car damages. In order to protect yourself from financial crisis in the event of a rental car accident, you should purchase rental car insurance.

Q: How do insurance companies determine a car’s worth?

A: There are many factors that go into determining a car’s worth, but the most common methods used include appraisal, market research, the point value system, and the Kelley Bluebook.

Q: How do I choose a deductible?

A: Unless you are seen as a high risk driver, car insurance companies will often let you choose the amount that you want to pay for a deductible. If you pay $500 and you have a great driving history, then you will probably be OK. However, if you have a blemished driving record your insurance company will probably want you to pay more. When choosing a deductible amount, it is important to remember that the lower your deductible, the higher your auto insurance quotes will be.