Auto insurance FAQ — everything you need to know
This is the place to find the right level of auto insurance cover at an affordable premium rateWhat is insurance?
This is a simple contract between you and a company so that, if you have an accident in your vehicle or it is lost or damaged in some other way, you can claim for its repair or replacement.How much does it cost?
The premium rate is calculated by estimating the risk of you having an accident. If you have years of experience, drive a family car and have never had an accident, you are low risk and will be offered a low rate. But if you are young and inexperienced, propose to drive a red sports car famous for its acceleration and have already picked up speeding tickets, you will be asked to pay a high premium.What is liability cover?
If you live in a state that relies on the law of tort, you are liable to pay compensation to anyone you injure through your bad driving. In the no-fault states, everyone claims from their own insurance company if they are involved in an accident. In all but three states, it’s mandatory to carry a basic amount of insurance to pay either set of claims. This is usually called financial responsibility, i.e. no matter which system you have, you should always have some money available to pay when you are in an accident (and the losses are your fault).What is collision cover?
As the name suggests, this pays for your own vehicle to be repaired or replaced if you collide with another vehicle, a person or an object like a tree or fence.What is comprehensive cover?
Do not be misled by the name. This is not "comprehensive", i.e. it does not cover everything that could happen to your vehicle. It actually offers some protection should your vehicle be stolen, suffer damage by vandals or be caught in bad weather conditions like a flood or tornado.Can you buy medical expenses cover?
Yes. In fact, in some states, it’s mandatory to carry personal injury protection cover. This ensures you have a minimum amount of money available to cover your medical bills should you or any passengers in your vehicle be injured in an accident.Are discounts available?
All the auto insurance quotes will give you a premium rate based on the information you have supplied. This will usually have taken discounts into account, but if you feel you are eligible for more reductions, contact the insurer directly.
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