Virtually every state mandates its own minimum liability vehicle insurance coverage requirements. These minimums are set to ensure that drivers have some level of financial provisions in case they cause accidents and have to pay for third party injuries and damages. However, it’s important to ask yourself whether the state minimum liability car insurance coverage…
Continue readingGeneral Discussions
Is Car Insurance a Commodity?
One contentious question that arises is whether car insurance is merely a commodity, a standardized product with little differentiation, or if there are substantial differences that set each policy apart. As automobile insurance can be viewed from different perspectives, it is natural that there will be people on either side of such arguments. This article…
Continue readingAuto Insurance Coverage for Road Debris
When you have collision and comprehensive car insurance coverage you are protected from most damages your vehicle may suffer, including hitting objects on the road or flying objects hitting your car while driving or parked. Road debris is one of those hazards that can fall under either collision or comprehensive coverage but luckily they are…
Continue readingCan You Get a Ticket for Eating while Driving?
It is unlikely that a police officer will issue you a ticket for eating while driving because there is no law in any state making it illegal to eat and drive. Laws in 48 states make it illegal to text while driving because it distracts drivers and causes accidents. Nevertheless, those laws don’t apply to…
Continue readingDoes Car Insurance Cost More If I am Unemployed?
Employment status isn’t something vehicle insurers check and consider for premium calculations so being unemployed doesn’t affect auto insurance rates. Drivers don’t get charged higher premiums for their line of work and certainly companies cannot refuse coverage based on your job description. As long as you can manage your finances well with your savings until…
Continue readingIs Fault Assigned in No-Fault Car Insurance States?
In states with no-fault auto insurance, the term “no-fault” pertains solely to injuries resulting from accidents. Drivers are still held accountable for any property damages they cause to other vehicle and property owners. So, it is essential to recognize that fault continues to play a significant role and is determined after an accident in these…
Continue readingImpact of Vehicle Modifications on Insurance
It’s important to know the impact modifications can have on your insurance coverage and premiums. Many car owners are unaware of the significant role modifications play in the insurance process. Failure to disclose any alterations to your carrier can have serious consequences, such as voiding your coverage or facing challenges when filing a claim. Notifying…
Continue readingWhat Is a Clean Driving Record?
A clean driving record refers to the absence of traffic moving violations, accidents, vehicular crime convictions, and points on one’s Motor Vehicle Record (MVR), which is maintained by the state’s Department of Motor Vehicles (DMV) or equivalent authority. Auto insurance companies, employers, law enforcement agencies, and other interested parties have access to these records, making…
Continue readingDoes Auto Insurance Cover Off-roading?
Driving off-road on gravel, dirt, unmarked roads or fairly safe outdoors shouldn’t be confused with off-roading, which is an adventure or sport of driving a vehicle over rough terrain. A standard auto insurance policy won’t cover off-roading, even if you have a vehicle designed for going off-road like Jeeps or 4x4s. Not only your auto…
Continue readingWhat Is the Connection Between Credit and Insurance Scores?
An insurance score is used to forecast the likelihood of applicants or policyholders filing insurance claims, and it is generated using data from their credit history. Insurance score calculations are largely based on information on credit reports and therefore often referred to as credit-based insurance score. In a large majority of states, auto insurers are…
Continue readingWhy Do Auto Insurance Companies Ask Many Questions?
Car insurance companies consider numerous details when calculating your quote. This comprehensive approach allows them to accurately assess and price the risks involved, ensuring you don’t miss out on potential savings while enabling them to determine appropriate premiums. Each question posed by vehicle insurers serves a specific purpose, such as evaluating the risk profiles of…
Continue readingDoes Auto Insurance Cover Distracted Driving Accidents?
Activities causing drivers to take their eyes off the road are essentially distractions. Cell phones and other gadgets grab motorists’ attention and it leads to accidents. If motorists have full coverage car insurance, traffic accidents are covered under Collision coverage, which would pay for damages to your own car even if the crash was totally…
Continue readingDoes a Texting while Driving Ticket Affect Auto Insurance?
Texting while driving violations can result in higher car insurance premiums, with potential increases averaging around 23%, as indicated by recent studies. However, the impact on premiums can vary depending on several factors, such as the state you live in and the policies of your insurer. Some states and companies may be less severe in…
Continue readingWill my Insurance Cover if an Unlicensed Driver Crashes my Car?
In case an individual without a driver’s license, such as a spouse or a driving-age child, resides in your household, you would have been obligated to inform your car insurance provider about their presence. Subsequently, certain insurers might incorporate this person into their premium calculations, despite their lack of driving privileges. If your insurer was…
Continue readingWhat Is a Motor Vehicle Report and Its Impact on Insurance?
Each state Department or Bureau of Motor Vehicles keeps a record on each registered driver in the state. It is called Motor Vehicle Report (MVR) or often known as driving records and includes the driver’s name, birth date, driving license number, any traffic tickets, moving violation convictions (like DUIs), license suspensions, any vehicular crimes and…
Continue readingDo Auto Insurance Companies Make Mistakes?
Car insurance companies, like any other organization, are prone to making errors. Being operated by humans, they can make mistakes in judgment, data entry, and processing. These errors can occur during policy creation, premium calculation, claims processing, and settlement. That’s why it’s extremely important to carefully review your policy document for any inaccuracies or omissions…
Continue readingWhat Is Insurable Interest?
Insurance is a mechanism designed to protect individuals, businesses, and other entities from financial losses resulting from unforeseen events. One of the key principles underlying insurance is the concept of insurable interest, which ensures that a policy serves its intended purpose of indemnifying losses rather than enabling speculative policy buying. Below, the concept of insurable…
Continue readingCan You Insure a Car with a Rebuilt Title?
When a vehicle is totaled (usually by insurance) it gets a salvage title and cannot get a license plate, be driven on the roads or insured. Sometimes, people may buy these automobiles, get them repaired, pass state inspections, re-register the title and get a license plate for it. Then, these cars are clearly marked on…
Continue readingIs Insurance Higher for Red Cars?
The color of a vehicle is not a factor considered by underwriters when determining auto insurance rates. Instead, they focus on factors such as the value, make, model, age, engine size, body type, safety features, theft rates and repair costs. They also look at other factors such as driver’s age, experience, driving, insurance and credit…
Continue readingWhat Is Insurance Score?
Insurance score is a rating factor, which predicts risks of an applicant causing losses to the insurer by submitting claims. Every company has its own way of calculating it but they generally look at the information on your credit report as well as including further details available to them like your accident and claim history and…
Continue readingFinancial Responsibility Laws for Motor Vehicles
Financial Responsibility Laws require motorists to provide evidence that they can compensate third parties in case the car they own, maintain or use causes damages or injuries to anyone. So, this includes the automobiles in your care as well. For example, an executor of a deceased person would have to buy insurance for a vehicle…
Continue readingGap Insurance Refund
Guaranteed Asset Protection (GAP) is a valuable solution to pay the difference between your car’s depreciated value and outstanding loan on it if it is totaled or stolen. Your comprehensive and collision coverage will pay the current cash value of your auto if it is totaled after an accident or stolen and this may create…
Continue readingDoes Bankruptcy Affect Car Insurance?
Individuals who are insolvent tend to have terrible credit scores once their financial status is recorded by credit agencies. A person with an excellent credit score can save as much as 52% on vehicle insurance in comparison to someone with an adverse credit history like bankruptcy. Credit history is one of the key factors considered by…
Continue readingCar Insurance for Disabled Drivers
Disabled drivers get the same automobile insurance as everyone else but the policy may need to be adjusted to cater to their specific needs, including vehicle modifications and additional equipment. By being open and honest about their impairments and modifications, disabled drivers can obtain the appropriate coverage to protect their vehicles, equipment, and overall mobility….
Continue readingMust All Household Members Be on My Auto Insurance?
Understanding who should be included and who can be excluded on your car insurance policy is crucial to avoid complications with claims in the future. Automobile insurers often have specific requirements regarding the individuals who should be listed and rated on your policy, as well as those who can be excluded from coverage. Additionally, state…
Continue readingNew Must Have Car Crash Avoidance Features
These safety features in new automobiles can help drivers avoid hitting pedestrians, steering off a roadway, and even dosing off. Technology is making large advances on crash avoidance that should reduce the number of people hurt in accidents. Certain auto insurance companies are pushing for these improvements and offering discounts to encourage people to look…
Continue reading10 Reasons not to Drive Impaired by Alcohol/Drugs and Resources
This is a situation you don’t want to find yourself in. Not only is drinking alcohol and driving is illegal, but also most states have penalties similar to it for illegal or prescription drugs. If you are under the influence of a controlled substance and get behind the wheel, you are putting yourself and everyone…
Continue readingPerfect Driving Posture: How to Reduce Aches & Pains
Driving can be therapeutic or highly stressful activity depending on the car, position and mental state. Simple adjustments can make a huge difference. Remember, you are more likely to avoid an accident when you are not bothered with discomfort and fully focused. Driving can be pain in the back, neck, arms, shoulders and even butt….
Continue readingCan I Keep an Uninsured, Unregistered Vehicle on the Street?
There is a misconception among motorists that car insurance is only required when a vehicle is driven. However, a vehicle must have at least the minimum state required insurance coverage even when it is parked on the public roads, regardless of being driven or not. In virtually every state, vehicle owners are required to register…
Continue readingHow Car Insurance Surcharges Different from Rate Hikes
The term “rate increase” is frequently employed to encompass surcharges, the overall upward trend in auto insurance prices, and individual rate adjustments resulting from changes in personal details. These factors collectively contribute to higher premiums, often causing confusion among motorists. However, it’s important to note that these terms have distinct underlying reasons and durations. A…
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