It is important to point out that car insurance policies come with terms and conditions. One important condition almost all policies have is that policyholders must inform their insurer of material changes in their circumstances. Generally, anything that may affect your vehicle insurance rates is a material fact like changing address, vehicle and having a…
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The Difference Between Vehicle Title and Registration
When it comes to owning a vehicle, there are several important documents that every owner should be familiar with. Two of the most crucial documents are the vehicle title and registration. While these terms are often used interchangeably, they actually refer to two distinct concepts. Understanding the difference between vehicle title and registration is essential…
Continue readingOverwhelming Influences Shaping Auto Insurance Decisions
When it comes to shopping for vehicle insurance, drivers often find themselves overwhelmed by a barrage of advertisements, information overload, and a multitude of choices. This article will delve into the influential factors that can shape car insurance decisions, while offering strategies to navigate through the complexities. By understanding psychological biases, sales pressures, tendencies to…
Continue readingWhat Is the Most Important Auto Insurance Coverage?
When driving, liability coverage is the the most important car insurance coverage you need for many reasons. Every state mandates that vehicle owners provide proof that they can meet their financial responsibility if they cause injuries and damages to other people in an accident they are at-fault and require purchase of liability coverage at least…
Continue readingWhat Happens If You Lie on Auto Insurance Application
There is a fundamental principle known as the Utmost Good Faith, which forms the foundation of the insurance contract. This principle requires both the insurer and the policyholder to act honestly and transparently in their dealings. In the context of car insurance, this principle manifests as the duty of disclosure, meaning you have an obligation…
Continue readingDo Auto Insurance Companies Share Information?
Vehicle insurance companies use consumer reporting agencies to report a new claim, settlement and denial. And other companies contributing to this database can see and read the details of accidents, incidents, communications and decisions about it. Also, companies can read police reports about accidents, access Motor Vehicle Reports from DMVs and check credit scores. Carriers…
Continue readingWhat is Average Mileage Per Year?
It is the number of miles a vehicle typically travels each year and it is an important indicator in several ways. Auto insurance companies want to know the average mileage per year travelled when they calculate their premiums because the longer a vehicle stays on the road the higher the chance of them getting involved…
Continue readingAdditional Interest vs Additional Insured in Car Insurance
Additional interest is a term often used to refer to a party that has a financial interest in the vehicle but not necessarily ownership. For example, if you’ve taken out a loan to finance your car, the lender may be listed as an additional interest on your auto insurance policy. This allows the lender to…
Continue readingDoes Auto Insurance Cover Catalytic Converter Theft?
Catalytic converters are easy to steal due to their location and contain valuable metals such as platinum, rhodium, and palladium. The theft often goes unnoticed until the vehicle is started, giving thieves an opportunity to escape without being noticed. Motorists with comprehensive auto insurance coverage can typically file a claim for catalytic converter theft and…
Continue readingHow Do Auto Insurance Refunds Work?
Car insurance premiums are almost always refundable, if there is any money left to be returned after a cancellation or coverage adjustment. Insurers will only charge for time on risk, deduct any cancellation fee (if any) and return the rest of the premium paid in advance if a policy is terminated before its time. Besides,…
Continue readingCan Out-of-State Tickets Impact Auto Insurance Costs?
When you receive a traffic violation ticket in a different state, it’s usually reported to your home state and becomes part of your driving record so it typically impacts car insurance rates for the majority of drivers. Many states have agreements to share convictions for moving violations across state lines. How much this ticket affects…
Continue readingDoes My Homeowners Insurance Cover My Car Damage?
Typically, your standard home insurance policy do not provide coverage for damages to your own vehicles. Your home insurance is designed to protect your dwelling, personal property, and provide liability coverage, but it does not extend coverage to your vehicles. To claim for damage to your own vehicle, whether due to accidents, theft, fire or…
Continue readingTips for Keeping Auto Insurance Affordable in Volatile Markets
Premiums tend to gradually increase each year, regardless of whether you file claims or modify your policy. The cost of automobile insurance has become a burden for numerous drivers due to recent rate hikes, making it necessary to include it as a budgetary consideration. In today’s unpredictable market, where economic influences can substantially affect expenses,…
Continue readingMembership Based Auto Insurance Discounts
There are clubs, service providers, associations and organizations that require membership. Motorists can join some of these by simply paying a yearly fee and others may require certain qualifications before they allow people to join. Some of these organizations can negotiate car insurance discounts for their members from certain insurers due to the buying power…
Continue readingDo I Pay More for Car Insurance if I’m Young?
Age, driving records, insurance history, and credit scores are indeed among the primary factors that insurers consider when calculating car insurance premiums. Unfortunately for young drivers, these factors often work against them, leading to higher insurance costs. Young drivers typically have limited driving experience, shorter insurance histories, and lower credit scores, all of which contribute…
Continue readingAuto Insurance Coverage for Pet Injuries
As more and more motorists travel with their furry companions, it’s essential to understand the extent of car insurance coverage for pet injuries in case of accidents. While many auto insurance policies include provisions for pet injuries, it’s important to know the specifics and take proactive steps to ensure your beloved pets are protected. In…
Continue readingWhat Is a Distant Student Car Insurance Discount?
Car insurance can be a significant expense, especially for families with teenage drivers. However, there are various discounts available that can help alleviate the financial burden. One such discount is the distant student discount, which can provide savings for parents when their children are away at college at least 100 miles away from home. This…
Continue readingWhen To Add Business Use on Personal Auto Insurance?
Determining whether to add business use to your personal car insurance is an important decision for individuals who use their vehicles for work-related purposes. By understanding the examples of business use and considering key factors, you can make informed choices about your coverage. Also, you may appreciate the scope of your personal automobile insurance better…
Continue readingIf a Friend Crashes my Auto Whose Insurance Pay?
Allowing a friend to borrow your car can potentially result in unforeseen outcomes, particularly if an accident takes place. Therefore, understanding how car insurance coverage works in such scenarios and knowing which policy covers potential injuries and damages becomes essential. Generally, standard car insurance policies extend coverage to occasional drivers, given they have the owner’s…
Continue readingHow Does Retirement Affect Auto Insurance?
Retirement is a significant life transition and an opportune moment to review your car insurance arrangements. Several factors, including the drivers and vehicles covered, annual mileage, commute, location, credit score, age, and eligible discounts, can change considerably. Even minor adjustments to these aspects can result in noticeable overall savings on your vehicle insurance. Regularly reviewing…
Continue readingWhat Is an Auto Insurance Policyholder
Car insurance policyholders are almost always the vehicle owners who buy the coverage, responsible for premium payments, can make changes to policies including cancelling, submit claims, communicate with loss adjusters and receive settlement checks. The other people who live in the same household usually are included as listed drivers, who cannot make changes to policies…
Continue readingWhat Is the Difference between a Named Insured and Listed Driver?
Standard auto insurance policies cover named insureds, listed drivers and occasional drivers, who are permitted to use the vehicle with the permission of the owners. However, they offer 100% of the coverage to named insureds, including extending it to cars they hire and providing secondary liability coverage when they use someone else’s auto. But listed…
Continue readingDo Auto Insurance Companies Check your Address?
There are ways car insurance companies can check your address and they request proof in the form of utility bills or mortgage statements if they cannot verify it independently. The garaging address you have given to your insurer must match with your actual residential address as people naturally keep their cars at their home. Your…
Continue readingCan Auto Insurance Increase in the Middle of a Policy Term?
You don’t need to wait until the renewal to make adjustments to your coverage. There are a few reasons why policyholders may want to make changes to their policies while it is still active like adding or removing a driver, changing the car or address and premiums may need to be adjusted up or down as…
Continue readingWhat Is the Underwriting Period for Car Insurance?
Auto insurance underwriting period allows companies time to check and verify the details provided by a new policyholder to determine if they are totally happy with the risks presented. In every state, car insurers have the right to cancel a new policy if they find the risks to be too high, in the early days…
Continue readingDoes Having LoJack Lower Auto Insurance?
The potential savings on your Comprehensive coverage costs, thanks to anti-theft devices installed in your vehicle, can vary between 5% to 25%, depending on the insurer and state. Numerous car insurance providers extend this discount, often listing LoJack as an eligible anti-theft device. Furthermore, certain state regulations may mandate insurers to provide these savings to…
Continue readingImportance of Being a Named Insured in Car Insurance
A named insured in an insurance policy is the primary owner and holder of the policy, entitled to all coverage benefits. Multiple individuals or organizations can be named insureds on a single policy, with equal rights to make changes, initiate claims, pay premiums, and enjoy coverage benefits. The first named insured often holds an administrative…
Continue readingDo Warnings Go on Driving Records?
Verbal and written warnings from law enforcement are steps before a citation and usually don’t have fines or court appearances. Verbal warnings are informal and stay between you and the officer, while written warnings document the offense details. Both types of warnings generally don’t go on driving records in most states, which means they usually…
Continue readingHow Long Does a Car Insurance Lapse Stay on Record?
Auto insurance companies can find out about your policy lapses by checking your CLUE report that includes your insurance history with the list of insurers, how long you had continuous coverage and if there are any cancellations and lapses between policies. CLUE report goes back 7 years so any cancellation or lapse in coverage can…
Continue readingIs a 6-Month or 12-Month Auto Insurance Policy Better?
Along with many other preferences and choices, motorists can choose between two policy durations of 6 and 12 month. Some companies offer both choices while others stick with one of the options. Depending on what you think will happen in the next year to automobile insurance prices, your driving record and credit score you may…
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