They May Ask About Other Drivers Who Use Your Car
You may have to provide the driver license number and details of all drivers in your home. You may have to disclose the occasional drivers too who do not live with you.
A valid payment method such as credit card information may be asked. You may also give a void cheque for setting up monthly debit instruction. You may update the insurance company of any changes to your situation. They may increase your insurance premiums if you give them wrong details. Be honest, if you give them false information that could also affect a claim in the case of a collision. They may cancel your policy if you dont disclose correct information. This will cause you to end up with no protection for your car.
Do I Need Auto Insurance
Years without a claim may make you wonder whether you need car insurance at all. You may think that since you’re a safe driver, and nothing ever happens, you shouldn’t need to keep paying the premiums. However, if you have a car, it’s at risk of damage from plenty of circumstances that have nothing to do with your driving ability. Plus, that’s not to mention the risk of every other driver on the road. Auto insurance can provide compensation for damage from things you can’t control.
If you are at fault in a car accident, the injured party will want compensation. Without car insurance, you will be held financially responsible. You could be forced to pay for all the damage out of your own pocket. Most people cannot afford to self-insure this is why most states require at least PLPD to be purchased by all drivers. In short, PLPD can protect you against financial ruin.
Getting Car Insurance: Which Documents Do You Need
When getting car insurance for a new vehicle, you’ll need to provide applicable insurance documents. The insurance requirements to buy car insurance are essentially the same in all states, so this guide is applicable no matter where you live. Before you go to get auto insurance, make sure you have the following documents and other information on hand.
Document 1: Driver’s License
Your driver’s license verifies that you can legally drive and therefore have the authority to purchase car insurance. It also allows insurance providers to check your driving history prior to offering you a policy. With a clean driving record, you’ll get much better rates than you could expect to get if you have a history of moving violations. If more than one person will be driving the vehicle you are insuring, drivers’ licenses must be presented for all parties.
Document 2: Social Security Numbers
The second document you will need to present to get car insurance is your social security number. Again, if more than one person is driving the vehicle to be insured, each driver will need to either present their social security card or have their number memorized.
Document 3: Bank Information
Document 4: Vehicle Information
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How Much Car Insurance Do You Really Need
17 Minute Read | August 26, 2021
We spend a lot of time talking about health insurance and life insurance, but now lets talk about car insurance.
Whos going to pay for repairs on that SUV when your teenager accidentally drives it through the garage door? Or what if your uncle forgets to put your car in park and it rolls into the neighbors brand-new convertible? Would you be covered, or would you have an angry neighbor and a financial mess on your hands?
When thinking about the types of insurance you need, car insurance should be at the top of your listno matter what kind of car you drive.
But what if youve been wondering, How much car insurance do I need? Dont stresswell explain everything in simple languageand walkyou through which auto insurance coverage options are right for you.
But first, lets cover some fundamental insurance terms.
What Type Of Insurance Do You Need
Car insurance is basically broken up into two categories:
Liability Insurance, which covers damages or injuries to others in the event of an accident. This also covers any legal fees involving the incident.
Personal Injury Protection, which covers medical costs if you are injured in a crash. This includes any medical bills that are not covered by the other partys insurance.
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Do You Need Personal Accident Insurance
Probably not. According to Consumer Affairs, the benefits provided by personal accident insurance may already be included in your health, life or car insurance policies or they may be included in the coverage the car rental company provides. If youre traveling overseas, where U.S. health insurance may not be accepted, then you should carry travel insurance with emergency medical benefits and emergency transportation benefits. These benefits are broader than personal accident insurance, because they can cover your medical expenses in an emergency overseas, whether or not it was caused by a car accident.
How Is Fault Decided After A Car Accident
Insurance companies typically have the final say on fault because they are the ones paying out the claims. But a lot of other variables are involved in their determination of negligence and fault.
First, police may contribute. Typically the police will ticket for infractions discoveredsuch as a driver who ran a red lightand write up statements and notes on the incident.
In some cities, law enforcement only responds to serious accidents with injuries or hit-and-run accidents. If that is the case, your insurance company wont hold the lack of a police report against you. At the accident scene, you and the other driver will need to exchange information, including insurance information.
While a police report is nice to have, insurance companies do an investigation once claims have been made and dont always agree with the findings of the police officer.
Insurance companies talk to drivers and witnesses, look at damaged vehicles and review motor vehicle laws. They may also do a scene investigation to look at the roadway where the accident occurred.
To help the claim progress, you can share photos, videos or dash camera footage showing how the accident unfolded or the aftermath.
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Do You Need Medical Payments Coverage
It depends mostly on your other insurance coverages.
MedPay is coverage that specifically covers any medical expenses you and your passengers have after an accident, regardless of whose fault the accident was. This is useful because it is coverage that kicks in right away while your insurance companies work things out, and usually has a lower limit around $1,000 to $5,000. It can help pay for health insurance deductibles and even your PIP co-pay. Unlike PIP, however, MedPay will not cover the replacement of any lost wages.
It is possible that your health insurance may not cover costs related to a car accident, and in that case MedPay would be very valuable protection. Even if your insurance will kick in, MedPay may also be worthwhile if you have a relatively high deductible.
What Is Supplemental Liability Insurance
Liability insurance typically covers damages to other people’s property as well as medical costs for other peoples injuries in an accident you’re legally responsible for.iii In the U.S., every state requires a minimum amount of liability insurance on car insurance policies, so you may already have liability coverage through your personal auto insurance.
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Definition And Examples Of Auto Insurance
Auto insurance is your financial protection for owning a car. It can cover the cost of damage to your car and the other driver’s car. It may even cover associated medical bills, depending on the circumstances.
If you are never in an accident, it is possible that you will never have to file an insurance claim. But its likely that you will be in at least one accident in your lifetime.
Let’s say you are in an accident. Another driver hit you from behind at a red light. Both cars are damaged you have whiplash as a result. The repair shop quotes $3,000 to fix your rear bumper and replace the rear windshield. The other driver, who is at fault, calls their insurance company to submit a claim, and you do the same. The other driver’s policy covers the full amount of your car repairs and most of your medical bills. Yours picks up the rest.
But what if the other driver is uninsured? They may not be able to pay anything out of pocket. Luckily, your insurance policy covers damage caused by other drivers. That way, you are able to recover most of the costs.
Lastly, suppose neither of you is insured. You could try your luck and sue the other driver for damages. Or you could take the loss and pay out-of-pocket. Either way, the lack of insurance will cost you.
Do You Need A Collision Damage Waiver
Its wise to purchase this type of rental car insurance. While your regular car insurance policy may include collision coverage for rental cars, it most likely includes a deductible and may not pay for all the rental car company’s charges, such as loss of use .ii Your credit card may include free collision damage coverage, but credit card rental car insurance is typically secondary coverage, meaning any claims will go first to your auto insurance company.
The most affordable way to ensure adequate protection in case of collision or theft is with third-party rental car insurance. The Rental Car Damage Protector from Allianz Global Assistance provides affordable collision loss/damage insurance coverage up to $75,000.
Unlike the waivers rental car agencies sell, the Rental Car Damage Protector is actual insurance that can protect your rental car almost anywhere in the world.
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Information About Your Driving History
Next, youll answer questions about your driving history. The auto insurance company will need to know about recent tickets or citations, accidents, and any information about license suspension.
Insurance companies mostly ask for a history of three to five years, but this time frame will vary by state and provider.
How Can Young Drivers Save Money On Car Insurance
Drivers under 25 years old pay higher car insurance rates than older drivers. Because younger drivers are new to driving, they tend to have more accidents and file more claims than older drivers. Lets explore eight tips for drivers between 20 and 25 years of age to save on car insurance:
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Who Is Covered By Your Auto Insurance
A car insurance policy doesnt just cover the people on the policy while theyre driving the cars on the policy. It may also cover you when youre driving someone elses car . Typically, liability coverage will follow the driver listed on the policy regardless of whose vehicle theyre driving. However, its important to read the exclusions on your policy to be sure.
Collision or comprehensive coverage, on the other hand, may only cover the vehicle listed on the policy. So before you borrow your friends car or decline the extra auto insurance for a rental vehicle, its important to check your individual policy. If you plan to let a friend or relative borrow your vehicle, the same is true. Check the exclusions on your policy to find out if damage to your vehicle is covered when someone else is in the drivers seat.
Do you have a side gig driving for Uber or delivering for DoorDash? Youll likely need to buy supplemental coverage. A standard personal policy wont typically cover you for commercial use of your car. Its yet another example of why its so crucial to understand not only who and what your policy covers but also who and what it doesnt cover.
Settling A Claim If You Have A Car Loan
If you have a car loan, your car insurance policy will usually include a loss payee clause. A loss payee clause makes your lender your beneficiary. In case of loss or damage to your car, your insurance company will pay your lender up to the remaining balance of your car loan when you make a claim.
When you make a claim, your insurance company may, at its discretion, give the money to either:
- you, so you can fix your car when you submit a claim
- your lender, who would then give you the money for repairs after you submit receipts proving they were done
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Do You Need Supplemental Liability Insurance
Someone trying to sell you rental car insurance may say your liability coverage is too low and encourage you to buy supplemental insurance. If you’re worried about liability, there’s a better way to protect yourself. The Insurance Institute of America suggests buying “umbrella liability insurance,” a low-cost policy added to your auto and homeowners insurance that can provide extra protection while driving your car or a rental.iv
U.S. auto insurance policies often dont provide any coverage abroad, so you may want to or youll be required to purchase liability insurance when youre traveling overseas.
Do I Need Rental Car Insurance
- Alice Grahns, Senior Digital Consumer Reporter
- 17:31 ET, Nov 18 2021
MANY of us rent cars when on holiday – but it’s important to know the rules around insurance.
If you don’t, you may be left out of pocket and liable to pay damages should an accident take place.
Just like standard car insurance, the cost of rental policies can vary by state, rental firm, and by how much coverage you choose.
We explain all you need to know below.
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Why Ontario Drivers Pay The Highest Car Insurance Rates In The Country
If you shop around for car insurance in Ontario, you may experience something akin to sticker shock. Its well known that Ontario drivers pay the highest car insurance rates in the country. Peter Cheney of The Globe and Mail reports that in 2012, the average annual car insurance premium in Ontario was $1,544.86 a whopping 45 per cent higher than Alberta, which had the second-highest premiums in the country.
But why? Is there something inherently expensive about Ontario? Well, actually, yes. Unlike other provinces, Ontario doesnt have public car insurance, which means insurance rates arent a level playing field for all drivers. In other words, certain demographics bear the brunt of the cost. By contrast, provinces with public car insurance programs distribute costs evenly among all drivers rather than unfairly penalize those they deem a statistical risk.
Ontario is also home to a troubling amount of insurance fraud. Nick Boisvert of CBC News reports that car insurance fraud costs as much as $1.6 billion each year. Unfortunately, fraudulent claims have a ripple effect that inflates the cost of car insurance. To combat false and misleading claims, the government has already created the Ontario anti-fraud task force. The government has also pledged to take steps to reduce car insurance rates by 15 per cent from their 2013 levels.
Where Can I Buy Temporary Car Insurance
Temporary insurance is available in most Canadian provinces. You can check with the Facility Association to see which companies offer it.
Some Ontario car insurance providers offer six-month coverage, but they are few and far between. In theory, you could opt for a 12-month policy and then cancel it before the end of the agreement, but the cancellation fees are costly.
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Types Of Car Rental Insurance Explained
If you don’t have other insurance and you aren’t keen to use a credit card for coverage, you may decide to buy rental car insurance.
If so, you should know that rental car agencies typically break out extra rental offerings into four sections, according to the Insurance Information Institute.
We’ve rounded up these below.
Loss Damage Waiver
Also referred to as a collision damage waiver, an LDW is not technically an insurance product.
Instead it is designed to relieve or waive renters of financial responsibility if their rental car is damaged or stolen.
Waivers may also provide coverage for loss of use.
This is usually charged by the rental car company for the time a damaged car can’t be used because it is being fixed as well as any admin fees.
By law, rental companies must provide the state required minimum amount of liability insurance coverage, but often this does not provide enough protection, according to the III.
If you have your own auto insurance and have opted for higher liability limits, you should be adequately covered.
Non car-owners who are frequent renters have the option of purchasing a non-owner liability policy.
Personal accident insurance
This covers the driver and passengers for medical and ambulance bills for injuries caused in a car crash.
Whether or not you should consider this depends on your health insurance and the personal injury protection provided by your auto insurance, if you have one.
Personal effects coverage
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