In almost any city around the United States, you need a car to get around efficiently. Whether you’re insuring your very first vehicle or buying the automobile of your dreams, the insurance policy you choose matters. To help you find the policy that fits your needs, we compiled 50 of the most common car insurance questions that might affect your search. If you’re looking for multiple types of insurance coverage, we offer a variety of coverage options beyond Auto insurance. When you’re ready to get started we put together a guide of the 50 most common questions about homeowners insurance also! Without further delay, here are the 50 most common questions our agents get asked about auto insurance.
1. What Is Auto Insurance?
More commonly known as car insurance, auto insurance is a policy you pay for monthly or annually that promises to cover a certain amount of loss or damages to your vehicle in the event of an accident.
2. Do I Need Auto Insurance?
Unlike home insurance, you are required to have auto insurance for your car or truck even if you own it outright.
3. What If I Don’t Get Car Insurance?
If you are involved in an auto accident and aren’t insured, the consequences are severe. You will likely face a lawsuit and will potentially go to jail.
4. How Much Auto Insurance Do I Need?
You can opt for the minimum coverage required by your state, which is usually liability insurance. However, if you want complete coverage in the event of an accident, you’ll need additional coverage. When determining how much coverage you need you can consult with one of our agents to find the plan right for you.
5. What Is Bodily Injury Liability Coverage?
This basic level of coverage only pays for the medical costs of the other individuals involved in the accident, and may provide legal defense if the other parties decide to sue you for damages.
6. What Is Property Damage Liability Coverage?
This covers you for the cost of damage to another person’s car or property when you are at fault for an accident. If you accidentally ram into someone’s front fence, you’ll want this coverage.
7. What Is Collision Coverage?
This is the coverage that will help pay for repair or replacement of your vehicle if it gets damaged in an accident. If you finance or lease your car, your lender likely requires collision coverage.
8. What Is Uninsured or Underinsured Motorist Coverage?
This coverage protects you if you’re in an accident with a driver who has no liability insurance, or lack of insurance funds to cover the full damages.
9. Should You Get Uninsured Motorist Coverage?
If you’re in an accident caused by someone else without insurance, you’ll have to pay the full amount they’re unable to pay. Driving without this coverage can end up costing you thousands of dollars if someone uninsured or underinsured causes an accident.
10. Does Uninsured Motorist Insurance Cover Hit-And-Runs?
Yes. An uninsured motorist policy will cover the damage to your vehicle if someone hits you and flees the scene.
11. How Expensive Is Auto Insurance?
Auto insurance is relatively inexpensive as compared to expenditures like health insurance. The average yearly cost for auto insurance in 2019 was $941.65. Multiple factors may influence your premium. We’ll work with you to find the best coverage that matches your budget. We’re proud to offer a variety of coverage options from Erie and Progressive.
12. When Do I Need to Purchase Car Insurance?
You need auto insurance before you even put your foot on the pedal. Driving without insurance is illegal, even if you only purchased your car minutes beforehand.
13. Do Red Cars Cost More to Insure?
No. This is a pervasive myth. The color of your vehicle does not influence the cost of your auto insurance. To answer your next question, despite the myth, white cars are more likely to get pulled over.
14. Does My Gender Affect My Auto Insurance Premium?
Oftentimes, yes. Insurance companies use different criteria to calculate rates however it’s becoming less common for men to always pay higher premiums due to their gender.
15. Does My Credit Score Affect My Premium Rates?
Yes. The lower your credit score, the more you will have to pay in premiums.
16. Can an Insurance Company Deny Me Service?
Yes. This is most common in cases where the driver has a DUI, has caused a serious accident or has a sufficiently low credit score.
17. Will a Parking Ticket on My Record Raise My Premium?
Not usually. You can generally have one ticket on your history without it adversely affecting your premium.
18. What Happens If I Lie About My Driving History?
The Department of Motor Vehicles (DMV) refers to this as “soft fraud,” and it will give the insurance company adequate reason to cancel your policy or deny you services.
19. What If I Forget About a Ticket on My Insurance Application?
If you forget to list a ticket or incident while providing your information to the insurance company, they generally do not assume you lied. They will adjust your quote when they pull your records and discover the missing information.
20. Who Can I Put on My Auto Insurance Policy?
You can add members of your household to your policy, as long as you all reside at the same address.
21. My Kid Has Gone to College. Can I Still Keep Them on My Policy?
In general, yes. Typically, a college student retains your home as their permanent address while their college residence becomes a temporary or mailing address. In this case, the student will still be covered.
22. What If I Get in an Accident While Driving Someone Else’s Car?
You would go through their auto insurance first. If costs remain afterward, you will go through your insurance.
23. Will My Auto Insurance Policy Cover Me in a Rental Vehicle?
Yes, as long as the rental car has a similar value to yours. If you have foregone collision or comprehensive on your policy and anticipate renting a car in the near future, you might want to consider a rental car add-on.
24. What Is an Auto Insurance Deductible?
Your deductible determines the amount of money you will pay out of pocket before your insurance carrier pays the rest.
25. Is Auto Insurance Tax Deductible?
If your vehicle is for personal use, no. If you are self-employed and use the vehicle for your main job, a second job or both, insurance premiums may be deductible.
26. How Do I Deduct My Auto Insurance Premiums for my Qualified Vehicle?
You will have to file a Schedule C form. Check with a tax expert to ensure your vehicle qualifies, and that you have calculated the deduction correctly.
27. Can I Pay My Insurance Premiums Monthly?
Yes. Insurers usually leave it up to you to decide whether you want to pay a portion of the premium each month, pay once every six months, or make a one-time payment once a year.
28. Is There an Advantage to Paying My Premiums Annually?
Some insurers may offer you a lower rate when you pay annually.
29. What If I Forget to Pay My Premium?
Most insurance companies will send you a warning notice by mail for the first time you miss a payment. You will likely incur a late charge. If it happens again, your coverage may be canceled.
30. Are There Discounts on Auto Insurance?
Many insurance carriers offer lower rates to good students, military personnel and people with excellent credit. Ask your agent what discounts are available.
31. Can I Get an Auto Insurance Discount for Safe Driving?
Oftentimes, yes. Insurance companies usually give lower rates to people with good driving records, and many offer safe driving programs with the incentive of a discount.
32. How Do Safe Driving Monitoring Programs Work?
Typically, the insurance company gives you a device to equip to your vehicle. The device usually reports on events like sudden stops and speeding as well as how much you use your car.
33. How Much Will a Driving Monitoring Device Save Me?
Different companies use highly varied formulas to determine what behaviors will net you a discount. Ask your insurance agent to find out the details of your policy or the policies you are looking at purchasing.
32. Do Newer Cars Cost More to Insure?
Yes. The newer the car, the more it will cost an insurance company to repair or replace it.
33. Does the Make and Model of My Car Matter?
Yes. Some makes and models have better safety features, which can lower your costs. Larger vehicles can cause more damage and therefore cost more to insure. Some models have higher rates of theft. There are many factors based on make and model that can affect your premiums.
34. How Can I Be Sure I Get a Good Insurance Deal?
You can either do the work of comparison shopping yourself, or work with an insurance agency and let them find the best deal for you without any hassle.
35. Will My Insurance Rates Drop Automatically Over Time?
Probably not on their own. You may want to contact your insurance agent after big milestones like buying a house, getting married or passing the age of 25. In some cases, they may be able to negotiate a better rate for you based on new factors.
36. Should I Bundle My Auto Insurance?
In most cases, bundling your car insurance with renters or homeowners insurance will net you a worthwhile discount.
37. What Is Gap Insurance?
Gap insurance is a type of add-on coverage that will cover the difference (or gap) between the current worth of your vehicle and the amount you still owe in financing.
38. Do I Need Gap Insurance?
If you meet these criteria, gap insurance may be a worthwhile investment for you:
- You made a down payment of less than 20 percent.
- You financed for 60 months or more.
- Your vehicle depreciates faster than average.
- You leased the vehicle.
39. Is Gap Insurance Expensive?
Not usually. If you have collision and comprehensive on your policy, gap insurance usually only adds about $20 per year to your premium.
40. What Does Car Insurance Not Cover?
Auto insurance is only meant to cover damages in the event of an accident, damage or theft. Repairs and replacements due to regular wear and tear are not covered by auto insurance.
41. Are There Any Vehicles That Need Special Insurance?
Yes. A standard auto insurance policy will not cover vehicles like commercial trucks or RVs. Motorcycles and recreational vehicles like ATVs require a different type of insurance.
42. What Is an Auto Insurance Endorsement?
An insurance endorsement is an alteration in the coverage provided by your policy. It can remove or add coverage, and supersedes the policy itself.
43. Do I Need Certain Endorsements?
Endorsements are usually added to a policy to increase coverage in specific situations. Your insurance agent can point out which, if any, are recommended for you.
44. What Is a Waiver of Depreciation?
This is an endorsement that ensures you will be covered for the purchase price or MSRP for your vehicle if it’s stolen or totaled. If you don’t have this endorsement, you will only receive the depreciated value of the vehicle.
45. What Is Insuring to Stated Value?
If you have a classic car, it may be worth much more than the cash value you would receive in a claim payout. This endorsement allows you to get a professional appraisal of your specialty vehicle and insure the classic vehicle up to that amount.
46. What Is Coverage for Transportation Replacement?
This helpful endorsement will reimburse you for the costs of using different transportation while your car is out of commission during an insurance claim.
47. What Is No-Fault Insurance?
No-fault insurance is any type of insurance that helps cover medical bills for you and any passengers, even if the accident was your fault.
48. What Is PIP Insurance?
Personal injury protection (PIP) is a type of no-fault insurance that covers medical bills but can also be used to recoup wages lost after an accident and pay for rehabilitative services.
49. Do I Need PIP Insurance?
PIP insurance is a good option for people who commonly drive with passengers, and for those who have less than comprehensive health insurance. PIP can help cover medical costs your insurance might not.
50. Is PIP Insurance Ever Mandatory?
Yes. These twelve states require that you carry a minimum level of personal injury protection coverage:
- Hawaii
- Kentucky
- Massachusetts
- Michigan
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
- Florida
- Kansas
- Minnesota
The exact amount of coverage you need will vary by state.
Make the Right Selection With Strock Insurance
The world of insurance is complex and confusing to most people, but getting the right auto insurance coverage is crucial. To protect your assets in the event of an accident, theft or damage of your vehicle, you need to have enough coverage to meet costs. Of course, that’s only part of the equation — The policy has to fit your budget, too. Now that you’re familiar with the most common car insurance questions, you’re prepared to find a policy that best meets your needs.
At Strock Insurance, we use our insurance expertise and exceptional customer service to provide Central PA with world-class auto coverage. Strock works with Progressive and Erie Insurance to offer you excellent plans at the most competitive rates.
If you’re looking for an insurance agency in Camp Hill, Harrisburg, Lebanon or other nearby areas, take action and talk to Strock Insurance. With 30 years of experience and more than 10,000 customers served, Strock Insurance is your source for auto insurance and so much more. Stop by one of their three convenient locations or start the process of getting an insurance quote online. Alternatively, request an auto insurance quote directly from Erie Insurance, one of our trusted partners.