What Is Uninsured Motorist Coverage?

Uninsured motorist coverage (UMC) steps in to cover the costs of injuries and damages sustained by you and your passengers in the event of an accident caused by an uninsured or underinsured driver. Essentially, UMC acts as a substitute for the liability coverage that the responsible driver should have had but didn’t. With approximately 12.6%…

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How Auto Insurance Accident Forgiveness Work

Car insurance accident forgiveness is a provision offered by many insurers to mitigate the impact of the first at-fault accident on premiums. While maintaining a clean driving record for several years can help keep rates stable, a single at-fault accident can cause up to 42% premium increase. To address this issue, insurers often provide accident…

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How Much Does Insurance Pay for a Totaled Car?

Dealing with a totaled car can be a challenging experience, but understanding how insurance companies determine the payout can help you navigate the process more effectively. It’s important to keep in mind that you have the opportunity to conduct your own research, perform calculations, and present your input to the claim adjuster. Below, how auto…

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Reasons for Being Refused Auto Insurance

In virtually every state, minimum liability car insurance coverage is a legal requirement to operate a vehicle. However, there are circumstances that can render a driver or vehicle uninsurable. This typically stems from personal details, non-standard application characteristics, the risk associated with the vehicle, or a combination of factors—such as a high-risk driver paired with…

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Is the Car Owner or Driver Liable for an Accident?

Often, individuals may drive vehicles owned by others and become involved in accidents. In such situations, if the at-fault driver had the owner’s permission to use the vehicle, the owner could bear responsibility for compensating damages and injuries. Consequently, the owner’s car insurance policy may be utilized to cover the resulting damages, as owners are…

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Can I Keep a Totaled Car and Get It Repaired?

When buying your car back from insurance after it has been salvaged, the process typically involves several steps. First, you’ll need to reach out to your insurance company and express your interest in buying back your totaled vehicle. They will provide you with the necessary paperwork, such as a salvage title application, which you’ll need…

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How Long Do Car Insurance Claims Take to Settle?

Majority of companies settle small auto insurance claims with minimum fuss and they send the money within days, after the policyholder submits the required estimates and details. Some insurers may assess and settle them automatically too. But they may investigate larger claims to determine fault and check if there is coverage for the damages and…

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Does Auto Insurance Cover Snow and Ice Damage?

Motorists need to have full coverage car insurance if they want to be protected from weather related damages in all seasons including winter. State required Liability policies only compensate for injuries and damages insured vehicles cause to other people and doesn’t include any physical damage provision for own auto. However, Comprehensive coverage together with Collision…

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Can My Auto Insurance Be Cancelled Due to Accidents?

It’s important for policyholders to understand the circumstances under which their car insurance policy can be cancelled, especially in relation to accidents. Typically, the responsibility of covering accident-related damages and injuries is an anticipated outcome of a policy and does not warrant policy cancellation. Nevertheless, there may exist exceptional circumstances surrounding an accident, prompting insurance companies…

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Vanishing Deductibles Auto Insurance Policies

Motorists may be able to arrange policies with disappearing deductibles through a few companies. In such cases, there are set amounts for each coverage component at the start but they start going down for every year (or six-month term) if there are no accidents or traffic violations. It is a way of rewarding policyholders and people…

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What Happens if You Don’t Have Auto Insurance?

Car insurance plays a crucial role in protecting both drivers and the general public from financial hardships resulting from accidents and other perils. Unfortunately, a significant number of motorists end up driving without insurance, unaware of the potential consequences. Vehicle owners should not live with the stress of not having insurance and should shop around…

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What Is Subrogation in Auto Insurance?

Subrogation is a legal process that enables insurance companies to pursue third parties who are responsible for damages or injuries suffered by their policyholders, after the insurer has compensated the policyholder for their losses. After an insurance company covers the policyholder’s losses, they assume the policyholder’s rights to seek compensation from the liable third parties….

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What Types of Cars Increase the Cost of Insurance?

Certain types of vehicles are considered high-risk by automobile insurance companies due to various factors such as their value, powerful engine, rarity of parts, or modifications made. As a result, the cost of insuring these vehicles can be substantially higher. While extreme examples exist to emphasize this point, even opting for a sportier model from…

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