- Q: What are the prerequisites you should look for while insuring your new car?
A: Online shopping, consulting local agents, or going for direct selling companies are the three main alternatives for you to find a good insurance company for your new car. In the current market scenario, comparing different insurance offers is the best way to choose a worthwhile deal. Be careful about the rate of premium, coverage of accident claims and various discounts offered by an insurance company.
- Q: Should you insure your secondhand car, if it is just worth a few hundred dollars?
A: Liability insurance is necessary for drivers, as every state has made it mandatory, irrespective of the market value of a vehicle. In case of a used car you should not opt for heavy premium insurance as it will not be cost-effective. Other optional insurances include underinsured/uninsured motorist coverage, medical payments coverage, collision, and comprehensive insurance. For a car worth a few hundred dollars, a moderate premium insurance that covers fundamental requirements is advisable.
- Q: Is a borrowed car covered under auto insurance?
Insurance companies make it clear that under any insurance policy it is the vehicle rather than the driver of the vehicle, which is insured. Thus, if an insured car is involved in any incident it is liable to get the entire coverage of the insurance, irrespective of who the driver was.
The company may need some information about the driver such as, if he or she is a qualified driver or not or whether the person driving the vehicle has permission of the owner or not, etc.
- Q: Are you legally eligible to drive without insuring the vehicle?
A: Legally, you cannot drive a vehicle without certain mandatory insurance. While in most states you have to take liability insurance but even in such cases where it is not essential, the financial responsibility law of a state makes it obligatory. Under it, you are required to insure adequate assets to compensate the loss in case of an accident. At any rate, you will have to buy the state minimum amount of insurance.
- Q: How are the cost of repair and the value of your car determined?
A: Determining the value of the car and the cost of repair is a two-way tug between you and the insurance company. The underneath formula of a claim is that the company will try to give you less and you have to squeeze more. Insurance company hires an adjuster to assess the claim of the loss of an insured car, but you have to be alert enough so that it does not undermine the loss. Never accept the adjuster's assessment without consulting your own mechanic. Besides, also be careful that the parts used in the repair of your car are of the same value.
- Q: Can your insurance company compel you to use any particular set of auto repair parts?
A: Definitely no, your insurance company cannot compel you to use only particular set of auto repair parts. In case, your insurance company's charges support only a definite type of parts and you wish to go for expensive ones, then you have to pay for the difference in the cost. Crash parts are frequently damaged during accidents. The two sources through which crash parts are repaired include generic or aftermarket crash parts suppliers and original-equipment manufacturers (OEMs). Recently, the market growth of generic parts suppliers has considerably brought down the prices of repairing parts.
- Q: What return do you get from the insurance company in case of a totaled car?
A: The insurance company declares a car totaled if the repairing cost exceeds its market value. Under such circumstances, your insurance company prefers to avoid the repair of the vehicle and go for cash settlement. Consequently, your company can declare a car totaled if it is an old one even after a minor accident while a major accident of an expensive car may not be totaled.
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