Frequently Asked Questions
Auto Insurance Rates
- Can the rates of my auto insurance be affected by my driving record?
There are several factors that are taken into consideration when determining your insurance rates. These factors include:
- Car make and model
- Driving record and any record of previous claims
- Demographic factors (age, marital status, sex)
- Usage of automobile (commute vs. leisure; annual mileage)
Insurance rates will also be determined by extensive statistical research and the data that has been gathered as a result of such research. For example: the highest risk group for auto insurance, according to statistical data, is single males under 25 years of age. The lowest risk group for auto insurance is middle-aged women who are unmarried and who don’t smoke. Another example of how statistical data is used: Drivers who have serious traffic violations on their record are considered far more likely to find themselves in recurring collisions in comparison to drivers with no collisions on their records. The latter category will often be rewarded for their driving record with special safe driver discounts by their insurance companies.
Many other factors are taken into account by insurance companies through their usage of statistical data and research: annual mileage that is higher than 12,000 miles a year, the presence of safety features such as airbags and seat belts, local costs of vehicle maintenance/hospital services/medical services and the likelihood of vehicular collisions occurring within 25 miles of a driver’s area of residence (which has been shown to happen with 80% of vehicular collisions). These are all taken into consideration by many different insurance companies in many states when determining your rates of insurance.
- Can the rates of my auto insurance be affected by the driving record of my family?
You may qualify for a Multi-Car discount if you share an auto insurance policy with a spouse, domestic partner, or members of your family. The downsides to sharing an auto insurance policy include possible auto insurance premiums resulting from any speeding violations or auto insurance claims resulting from anyone else’s conduct behind the wheel.
- How can I be affected by any gaps in my auto insurance coverage?
Drivers who have gaps in their auto insurance coverage are often considered by insurance providers to be a greater risk than those who are able to maintain consistency in their coverage. It is recommended that any gaps in coverage be avoided whenever possible, as they can often result in future auto insurance rates being increased.
- Can the rates of my auto insurance coverage be affected by my choice of vehicle?
The value of your vehicle and any possible expenses for maintenance and replacement are taken into consideration when insurance providers are determining the auto insurance premium. Your premium can be lowered in certain states with the installation of certain safety features and theft-prevention devices in your vehicle.
- Can the rates of my auto insurance be affected by my credit?
Credit-based insurance scores, which are used to determine one’s likelihood and ability to provide payments for bills in the future, are often used by most insurance companies in the U.S. Those who are found to have a high credit score are usually expected to have to pay lower auto insurance rates compared to one who has a low credit score.
- Can the rates of my auto insurance be affected by my gender?
Some auto insurance companies, in order to determine their rates, will make generalizations about groups of people and their driving abilities, as analyzing and determining driving ability on an individual basis is nearly impossible. And according to these generalizations, the highest risk group for coverage is young males between the ages of 16 and 25 and they are expected to pay more for coverage than females of the same age. Gender behaviors that are seen as contributing factors to higher payments for coverage are:
- Males drive more frequently than females
- Males exhibiting riskier and possibly more dangerous behavior when behind the wheel
- Males pushing their limits when behind the wheel, even to the point of ignoring possible signs of exhaustion
However, males can expect their auto insurance rates to decrease as they grow older and obtain greater driving experience behind the wheel. Particularly if they maintain a good driving record and few to no driving violations or auto insurance claims.
- Can the rates of my auto insurance be affected by my age?
Inexperienced drivers of both genders are usually charged higher auto insurance rates as they are considered to have a greater likelihood to find themselves in vehicular collisions than adults. They are, however, given numerous opportunities to save money by most insurance providers and are even sometimes offered what is known as a Good Student discount if they are students under 25 years of age who maintain a 3.0 (B) Grade Point Average or better and are enrolled full-time in a high school, community college or university.
- Can the rates of my auto insurance remain the same from term to term?
Your rates can also change if your driving record reveals that you have been in any collisions or charged for any violations, which could result in higher rates when you attempt to renew your policy. An increase in rates can even occur as a result of states approving of new laws regarding auto insurance premiums, something that is clearly not in the control of insurance providers. Your rates could also change if you qualify for a discount that was previously offered to you, but didn’t meet the necessary requirements at that earlier time.
If you are looking for ways to lower your insurance premium without your coverage being affected, know that if your deductible is increased, it could lead to your premium being lowered. Since the deductible is only part of a claim that needs to be made, the amount of money saved on the premium could definitely cover any additional deductible.
- Can the quoted rates of my auto insurance change when I purchase my policy?
Your quoted rates are likely to change, as no quote is final until the decision is made to actually purchase an auto insurance policy. When you receive your quotes, you will be asked about the vehicles and drivers on your policy. You will also be asked for crucial and in-depth information that will need to be provided for verification purposes before the final purchase is made and a final price is given. Evidence of your driving record will not be requested and neither will eligibility for auto insurance discounts.
Your rates will also be determined by certain factors, such as your driving record, choice of vehicle and annual mileage.
- What are the types of claims that could increase the premiums of my auto insurance?
Claims that usually result in an increase of auto insurance premiums are ones in which the policyholder is at fault. These are referred to as “chargeable claims” by insurance providers. Small claims that are filed under comprehensive coverage (windshield replacement, damages inflicted resulting from the criminal behavior of others) will not increase premiums.
There are some states with governing laws as to when and why premiums can be increased by insurers. In most cases, they are not allowed to raise rates if a policyholder has any speeding or moving violations on his or her record. For most speeding violations, how insurance companies choose to respond can vary. Some of them will raise rates depending on how severe the violation may be, whereas others will only raise rates a specific amount for each offense.
- Are parking tickets considered violations by carriers when getting quotes for auto insurance?
No, they are not. Parking violations are not considered by insurance providers to be hazardous towards other motorists. So your driving record will remain unblemished and your auto insurance rates will remain unaffected. This is not an exercise to behave recklessly behind the wheel, as every driver is expected to drive with extreme caution and consideration when operating a vehicle.
- When getting an online quote for auto insurance, should I include any accidents/collisions that weren’t my fault?
It is recommended by insurance companies that you share your entire claims history when purchasing an auto insurance policy, as they are highly unlikely to punish you for the carelessness of another motorist. They also need to comply with any and all state laws in determining the type of collisions you were involved in, so they can then decide on the actual insurance quotes to be discussed.
If you are found to be at fault in a vehicular collision, your auto insurance rates will increase. Their increase, and the length of time they remain increased, are dependent on the nature of the collision and its severity.
- What would happen if I fail to make an insurance payment?
The response to missing a payment varies between different insurance companies but should you fail to pay your premium in a punctual manner, your insurance company has every right to cancel your policy after you have been provided with sufficient notice of your policy’s eventual cancellation.
- Can I put my insurance coverage on hold if I won’t be driving my vehicle for a prolonged time period?
If, for example, you are temporarily leaving home to travel elsewhere but your vehicle will remain in your possession, it is suggested that you avoid cancellation of your auto insurance policy to avoid dealing with high rates upon your return home. Such higher rates can be applied to those with gaps in their history of auto insurance as opposed to those with auto insurance who maintain a steady and consistent driving record. However, coverage can be decreased if your vehicle is placed in storage during your absence. When you have returned home, coverage can be increased back to more appropriate levels.
If your prolonged absence involves attendance of college, some states offer through their insurance providers a Good Student discount. Qualifications involve being under 25 years of age, maintaining a grade point average (G.P.A.) of 3.0 (B+) and up and also full-time enrollment in university, community college and high school.
- What is the necessary amount of auto insurance coverage?
The more coverage you purchase, the less costly it will be should you ever find yourself in a collision. Most states would suggest that any driver purchase and carry the minimum amount of auto insurance coverage that the driver’s state of residence requires. But due to increases in medical care as well as the inability of most states to remain current about the increasing costs of vehicle maintenance and replacement, it is recommended to avoid simply purchasing the minimum amount of coverage.
If you find yourself in a vehicular collision, the costs could easily surpass that minimum amount of coverage and result in you paying large financial amounts out of your own pocket for damage inflicted on your own vehicle, the recovery from any physical injury sustained in the collision, and possibly even for damage inflicted on the vehicles and property of others, as well as the recovery from any physical injury for any motorists and passengers, sustained in the collision.
- If my vehicle is leased or financed, would I need special auto insurance coverage?
You will be required to complete a thorough inspection of your loan and/or leasing agreement in order to become familiar with all requirements that your bank or financial institution may have regarding auto insurance coverage. After doing so, purchasing comprehensive and collision coverage is another requirement that you will be expected to fulfill. You may also be required by your bank or financial institution to also purchase liability coverage that exceeds the minimum requirements of your state of residence. This step is taken in order to protect their interest in your loan and to avoid having to deal with any unpaid portions of your loan.
It should also be taken into consideration that most insurance companies will only pay for the actual monetary value of the leased vehicle that you are purchasing auto insurance coverage for. This value is related to the vehicle’s age, mileage, and physical depreciation. So if you find yourself in a collision with this vehicle, it should not be expected for you to receive a sparkling-new replacement. Any serious damage inflicted on the vehicle that is not covered by your policy is damage that you would have to personally have to finance the repairs for.
The amount of auto insurance coverage you should purchase is dependent on several factors, all of which should be taken into serious consideration when discussing this with your insurance provider:
- Risk appetite: If you are not particularly fond of engaging in risky or dangerous behavior, then this should be reflected in your auto insurance coverage through high limits of coverage and low auto insurance deductibles
- Location of residence: You will need to invest in a substantial amount of coverage if you live in an area where wildlife is present or where collisions and fender-benders are a frequent occurrence
- Make and model of vehicle: Any auto insurance coverage you may have should be increased if you have purchased a brand-new vehicle. This will serve as protection for your investment if you find yourself in a collision
- Number of assets: The more assets that you have, the more auto insurance coverage will be necessary for their protection
- Passengers: If your vehicle regularly carries passengers of a young age, then auto insurance coverage will be necessary for their protection in case of any vehicular collisions
- How would my online quote for auto insurance be affected by different levels of auto insurance coverage?
You would simply discuss with your insurance agent the best and most affordable coverage for you, as well as compare it to coverage provided by other insurance companies. Most states here in the U.S only require that you purchase the minimum amount of auto insurance coverage for your vehicle, but seeing as how most insurance companies will only pay for the actual monetary value of the vehicle that you are purchasing auto insurance coverage for, it is best to purchase the most insurance coverage for your vehicle that you can afford. This value is related to the vehicle’s age, mileage, and physical depreciation. So if you find yourself in a collision with this vehicle and it is only insured with the lowest amount of insurance coverage possible, then any serious damage inflicted on the vehicle that is not covered by your policy is damage that you would have to personally have to finance the repairs for.
- How would I obtain auto insurance coverage for more than one vehicle?
Most insurance companies will not require you to get separate quotes for each vehicle that you are looking to insure. You will simply need to provide specific information about each vehicle as well as the drivers that you intend to have on your policy. In some case, insuring two or more vehicles on one policy can result in you receiving a discount on your auto insurance. This is something that can definitely be helpful towards married couples, partners in a recognized civil union, and registered domestic partners.
- Would my domestic partner and I be able to get auto insurance coverage together?
Yes, you can. With some insurance providers, your marital/relationship status can simply be listed under the title of “domestic partner.” And if more than one vehicle is parked at the same address, you can be considered for what is known as a Multi-Car discount. This discount can assist couples and families who reside at the same address save money when it comes to their auto insurance coverage.
- Why is it necessary for me to get auto insurance coverage?
Nearly all dealerships would refuse to let you finalize the purchase of a vehicle, let alone allow the selected vehicle to even leave the lot, if the buyer doesn’t have any auto insurance coverage.
Auto insurance coverage is not just about protecting yourself and your vehicle should any damage be inflicted resulting from a collision. It will prevent you from paying exorbitant amounts of money for repair of your own vehicle, as well as the repair of other vehicles involved in the collision. Most types of auto insurance coverage are considered optional, but liability coverage and its acquisition are mandatory in most states.
- Is there someone I should share my auto insurance coverage with if I decide to do so?
It is best to have shared auto insurance coverage with other drivers who reside at your address, whether it’s a child, domestic partner, roommate or spouse. If they possess a driver’s license, then he or she should be in possession of auto-insurance coverage.
Even if one or many drivers rarely or never drives, it will save valuable time in the claims process to list those names as occasional drivers should there ever be a future incident in which one or more of them ends up behind the wheel and in a collision. This time-saving method could also prevent any possible denial of auto insurance coverage. Some insurance providers will also offer what is known as a Multi-Car and/or Multi-Driver discount to allow your coverage to remain affordable.
- If I decide to get auto insurance coverage for more than one vehicle, could I receive a discount?
Most auto insurance companies allow you to qualify for the married rate if you happen to be married, in a registered domestic partnership, or in a state-recognized/country-recognized civil union. If there is no official documentation for your domestic partnership, then you won’t be able to receive whatever married rate is being offered. However, you and your partner will still be encouraged to have both of your names listed on the policy, as it will allow both of you to benefit from any and all policy-level discounts offered to you by your provider.
If more than one vehicle is parked at the same address, you can be considered for what is known as a Multi-Car discount. This discount can assist couples and families who reside at the same address in saving money when it comes to their auto insurance coverage.
- If I have a good driving record, could I receive an auto insurance discount?
Yes, you could. Some insurance companies in some states often reward careful motorists with lower insurance rates and/or a Good Driver discount. That discount will instantly be applied to your premium upon complete evaluation of your driving record.
Your discount could end up being revoked, should you find yourself in any collisions or on the receiving end of any violations. This will not affect the rates of anyone else listed on the insurance policy, but could motivate the offending driver to increase the safety of his or her driving skills and hopefully qualify for a Good Driver discount or something similar.
- If my vehicle contains additional safety features, could I receive an auto insurance discount?
Yes, you could. Some auto insurance companies automatically apply their discounts for safety equipment that is present on a vehicle. Any additional safety features that are installed later on will allow you to select other discounts related to safety equipment. When you receive your quote, you will be able to determine what discounts for safety equipment are available in your state of residence. The following listed examples of safety equipment are:
- Air bags: Cushioning device for passengers in a collision to prevent them from slamming into any unsafe part of the vehicle’s interior. They can be located in the front, sides, or even deploy for when a vehicle rolls over
- Anti-lock brakes: Prevents the wheels of a vehicle from sliding on the asphalt during “panic” braking, allowing the driver to maintain greater control over his or her steering as the vehicle is quickly slowed down
- Head restraints: Prevents the likelihood of any possible neck injuries commonly known as ‘whiplash’ by limiting any rearward movement of the head during a rear-impact collision
- Seat belts: Designed to keep you inside the vehicle during a collision. Also prevents and reduces the possibility of slamming into the dashboard, steering wheel, or windshield
- If my vehicle has anti-theft features, could I receive an auto insurance discount?
If your vehicle is armed and equipped with disabling devices, passive/non-passive alarm systems, or preventative anti-theft equipment, you could be offered an auto insurance discount as permitted by your state of residence. When discussing this with your insurance agent, he or she will allow you to select the most applicable discounts.
Such features may seem costly, but they could help you save money on your auto insurance coverage thanks to lower rates and applicable discounts for specific equipment.
- If I take courses in driver safety, could I receive an auto insurance discount?
Some states have additional methods for determining your qualification for such a discount. When purchasing your auto insurance quote, your insurance agent shall go over the more specific details with you. Official documentation will then have to be provided upon completion of purchase.
There are also auto insurance discounts available in some states for teenage drivers who have completed and passed an accredited program for the safety of younger drivers. Your agent will be able to inform you if your young driver is qualified for such a discount and if so, his or her premium will be lowered every six months, so long as he or she maintains a clean driving record.
- If I’m a current student with a good academic record, could I receive an auto insurance discount?
Yes, you could. Some states offer through their insurance providers what is known as a Good Student discount. Qualifications involve being under 25 years of age, maintaining a grade point average (G.P.A.) of 3.0 (B+) and up and also full-time enrollment in university, community college and high school.
- If I’m a single parent, could I receive an auto insurance discount?
Even though most insurance companies do not offer discounts to someone specifically because he or she is a single parent, there are numerous other discounts to be taken under consideration that one could qualify for. This includes discounts for safety features on vehicles, owning multiple vehicles and home ownership.
If you are a single parent, you may want to consider the Good Student discount for your child. If your child is under 25 years of age, maintains a grade point average (G.P.A.) of 3.0 (B+) and up and is enrolled full-time in either university, community college and high school, then he or she could qualify. You could even save more money through a discount if your son or daughter is a student at a PAC-12 school or is a graduate from one.
- If I’m a driver who is of older and mature age, could I receive an auto insurance discount?
Yes, you could. You must meet the age requirement in your state of residence and then take an approved course for the safety of mature drivers. Auto insurance discounts are also offered in certain states based on age and employment status, so long as you intend on driving these vehicles for recreational purposes only.
When receiving an auto insurance quote, you will be able to examine the rules of eligibility for a mature driver discount as well as other discounts in your state of residence. As long as you are honest with yourself and your insurance agent about your driving ability, you will hopefully qualify for any discounts you find applicable to your age and situation.
- If I rarely operate my vehicle, could I receive an auto insurance discount?
Those who rarely drive tend to often receive lower rates for auto insurance. When looking for insurance quotes, you will be questioned by agents about the primary usage and annual mileage of your vehicle. This makes it easier to determine what kind of quote you will receive, as well as the resulting lower rate. If low mileage happens to be your goal, you can always consider carpooling and/or public transportation.
- If I’m a customer who is willing and able to pay in full, could I receive an auto insurance discount from providers?
Most auto insurance companies can and will offer discounts to those who are capable of paying the full amount for their policy. Depending on your state of residence, paying for your policy in full may be a requirement when purchasing it. Paying the full amount is a good incentive to prevent you from having to concern yourself about it for another six months.
Filing a Claim
- What should be done if I find myself in a collision?
- Get professional medical assistance for anyone who has sustained physical injury
- Call the police
- Allow medical professionals and police to handle the scene of collision
- Discuss collision with absolutely no one but the police
- Admit fault to absolutely no one
- Gather any and all necessary information
- If possible, take photographs of vehicular damage, the location of the collision, any and all features of the scene of the collision
- If possible, remain calm
- Report the collision to your insurance provider
- Write down any and all details of the collision, in your own words and from your own perspective
- What should be done if I find that my vehicle has been vandalized?
- Notify the police so that they can issue a police report of any vehicular damage, also allowing them to determine if there is a pattern of similar vehicular damage elsewhere
- Identify any possible witnesses at the scene and provide any witness information to the police
- If possible, take photographs of vehicular damage
- Leave vehicle as you found it, for further inspection by police and appraisers
- What should be done if I find that my vehicle has been stolen?
- Contact the police immediately
- Report the incident to your provider
- If it is included in your coverage, you will be provided with a rental vehicle
- What should be done if I find that something has been stolen from my vehicle?
- Contact the police immediately
- File a claim with your provider
- Know that stolen items are usually covered under homeowners’ or renters’ insurance
- Describe losses in detail when speaking with a claims representative
- Being able to provide receipts and detailed descriptions of what is missing will help make the process much easier
- What kind of collisions or incidents should be reported to my insurance provider?
If you are unsure about how to proceed with a claim or whether to proceed with one at all, call a representative from your insurance company and he or she will discuss this with you in further detail.
- Who is responsible for reporting an auto insurance claim?
Anyone can file a claim but it is usually best for the driver or whoever is covered and knows the most about the collision to contact the insurance provider. If any physical injuries have been sustained and you are unable to report the incident yourself, then someone else should file the claim. Regardless of whether or not you’re at fault, you must report it, as the other party who may actually be at fault will certainly do the same.
- If my vehicle is damaged as a result of natural disasters or weather, should I file a claim?
Comprehensive coverage will assist in payment for damage inflicted on your vehicle resulting from fire, falling/descending objects, acts of thievery, acts of vandalism, and certain natural disasters.
When a claim is filed under comprehensive coverage, your vehicle’s actual monetary value is the most that will be paid out for repair or replacement of your vehicle, minus the amount of the chosen deductible when the auto insurance policy was first purchased. Comprehensive coverage isn’t mandatory in every state, but is highly recommended if you reside in a state where severe and harmful weather occurs with some degree of regularity.
- What should be done if and when I need to report an auto insurance claim?
Most auto insurance companies allow you to file a claim either online or via telephone
- What would happen if I am hit by a motorist that is operating a vehicle with no auto insurance coverage?
If you have uninsured/underinsured motorist coverage, then this situation will be properly handled, as such coverage is intended for incidents such as this. If you don’t and you reside in a state with no-fault insurance, then a claim will have to be filed for medical expense with your auto insurance company, no matter who is at fault for the collision. A claim would then have to be filed on your medical payments or on your Personal Injury Protection (PIP) coverage, which not helps cover any lost income, but also helps provide payment for the medical treatment of any physical injuries sustained by you and any passengers present in your vehicle during the collision.
For the payment of any vehicular repairs, you can file a claim on your collision coverage, which pays for any damage sustained by your vehicle as a result of a collision with another vehicle or object as a result of losing balance and flipping over. Even if you are not at fault and you file a claim on collision coverage, you will still have to pay the deductible, but your insurance company may attempt to recover the costs from the driver who is actually at fault, which includes a refund of the deductible.
If you don’t have any collision coverage, you may have to resort to filing a lawsuit against the uninsured/underinsured motorist who was at fault. But in situations such as these, motorists who are at fault for vehicular collisions usually don’t have much money to pay for your claim.
- What would happen if someone else is driving my vehicle and ends up in a collision?
Your vehicle, along with yourself, any relatives, and anyone else permitted to use your vehicle, will all be covered. But allowing an uninsured person to operate your vehicle can easily result in you being open to lawsuits for any and all medical expenses and property damages, especially if a vehicular collision results in damages and injuries that go far beyond the limits of insurance liability coverage.
New Car Insurance
- Should I compare insurance quotes when purchasing a new vehicle?
Yes, you should. If you intend on purchasing a new vehicle, there is nothing wrong with inquiring about the quotes that other insurance providers could be willing to offer, even if you are already the current holder of an auto insurance policy.
Conducting research on new auto insurance will also help you decide on what type of vehicle you would like to purchase, since your rate can and will be affected by what type of vehicle you would like to have covered. Having necessary contact information for different insurance providers, as well as comparing their quotes, will permit you to make the best possible decision when selecting the best and most affordable coverage.
- Is insurance necessary when purchasing a new vehicle?
Yes, it is. You would not be permitted by any dealership to remove the vehicle from the lot, unless proof of insurance is provided. It is also required by a bank or financial institution if you intend on financing the vehicle that is being purchased.
- Can my vehicle be insured when driving it off the lot?
If you are the current owner of an auto insurance policy, being able to provide a proof of insurance will permit necessary coverage for your new vehicle for a brief period of time. You may consult with the Declarations page of your insurance policy or your insurance agent if you have any questions as to whether your new vehicle will actually be covered by your existing policy. If it becomes necessary to purchase new auto insurance coverage, then your dealership will provide information about your new vehicle to your insurance provider. The completion of your new purchase will allow you to leave the lot a satisfied and insured driver.
- What, if any, are the insurance requirements for someone leasing a new vehicle?
Even though most insurance requirements are normally determined by the dealership or organization that provides the vehicle being leased, most new auto insurance policies for a leased vehicle require the purchase and ownership of auto loan/lease (gap) insurance, as well as comprehensive and collision coverage. Most contracts for leasing of a vehicle automatically include auto loan/lease (gap) insurance. If yours does not, consult with other insurance providers until you find a satisfactory offer.
- What is the definition of auto loan/lease (Gap) insurance? Is it necessary for me to purchase it?
If a vehicle sustains catastrophic damage preventing any and all function, auto loan/lease (Gap) insurance will pay the difference between the vehicle’s actual monetary value and the remaining monetary value that is left on the vehicle loan, so it can be a very necessary purchase to make. The monetary amount owed on the loan for the vehicle can often exceed its actual value, which immediately begins to decline upon purchase. If vehicular damage is inflicted to the point where repair is not a possibility, the policyholder could owe a dollar amount somewhere in the thousands. Which is more than the amount of the vehicle open to reimbursement.
Gap coverage does not always result in full payment of the loan value. Such cases in which that is applicable include: unpaid delinquent payments due at time of loss; extensions or deferrals of compensation; additional endorsement of vehicle loan after purchases of policy; and any or all administrative fees estimated commencement of loan.
- Are insurance companies notified by dealerships when a new vehicle has been purchased?
No, they aren’t. It is your responsibility alone to inform your insurance company that you have purchased a new vehicle and that your policy may need to be properly modified and updated.
- Will my existing insurance cover any new vehicle I purchase?
Depending on your insurance company or the requirements of your state of residence, most auto insurance policies will provide coverage for any newly-purchased vehicles for a brief period of time. Your current policy may not be the best match for your new vehicle, so it would be best to have it updated and modified as soon as possible.
- Can my existing insurance policy be transferred to a new vehicle?
Yes. But your current policy will have to be updated and modified in order to provide proper coverage for your new vehicle. Your insurance provider will be responsible for said modifications, as well as your rates will be affected by your choice of new vehicle.
- What is the permitted time period for a new vehicle to be added to an existing auto insurance policy?
Most insurance policies will provide coverage for a newly-purchased vehicle for 14 to 30 days, depending on the present insurance provider as well as the requirements of your state of residence.
- Will my premium increase if I decide to purchase another vehicle?
Any possible increase of your premium is dependent on the type of vehicle you drive and your chosen options for coverage. Some vehicular models are held in higher regard due to their safety and reliability, whereas others are often considered more hazardous or more likely to be more vulnerable to acts of thievery. Your rates can be lowered or increased, depending on your choice of vehicle. They can also be affected by any changes made to your policy and could even decrease due to an increase in deductible as well as an increase in limits.
- Which is less expensive: insurance for a new vehicle or insurance for a used vehicle?
There are far too many contributing factors to an insurance quote that make it impossible for this question to have one definitive answer. However, used car insurance is not always less expensive than new car insurance as there are several factors to consider that result in high costs of insurance, such as maintenance history and mileage.
The only certain answer one can receive is from speaking with an insurance agent and getting a direct quote. Similar coverage, limits and deductibles would have to be selected in order to get an accurate comparison of insurance quotes for an older vehicle and a newer vehicle.
- Can my new vehicle be insured by a different insurance provider before the end of my current policy?
Yes, it can. There are many insurance providers willing to offer a discount for switching over to them from your previous provider. You would have to ensure that the date of your new policy coincides with that of your previous policy in order to prevent any lapse in coverage as well as an increase in premium.