Below you will find many answers to commonly asked questions
about auto insurance:
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What is auto insurance and why do I need it?
An auto insurance policy is a contract between you and an
insurance company. You pay the premium, and in return, the
insurer agrees to pay for any car-related losses detailed in the
policy. Most states require that all drivers have an auto
insurance policy, or the ability to provide evidence that you
have the financial resources to pay for injuries or damages.
Severe civil and criminal penalties may be incurred if you do
not have insurance, including:
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Vehicle impoundment
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Revocation or suspension of driver's license
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Lawsuits
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Fines
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Imprisonment
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What are the most important things to consider when purchasing
auto insurance?
Here is a list of things to consider when buying auto insurance:
Choose the amount of liability coverage that meets your needs.
For example, in California the minimum requirements are $15,000
per person, $30,000 per accident, and $5,000 in property damage.
Check with your local Department of Motor Vehicles for more
information.
Decide if you need optional coverage. Other types of coverage
include collision, comprehensive, uninsured or underinsured
motorist, and towing and rental reimbursement.
Once you have decided what coverage you want include in your
policy, you need to determine who to purchase the insurance
from. We will help you choose a company with the services and
rates that best meet your needs by presenting a number of
carriers where available.
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How are auto insurance rates determined?
Insurance companies use statistical history to determine current
rates. Rates are based on the amount needed to pay all claims
and company business expenses.
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How can I lower my rates?
There are a number of things you can do to lower your rates.
Here are some tips:
- It pays to shop around. You can often find policies that vary
hundreds of dollars for the same coverage on the same car.
- Choose an automobile that is inexpensive to insure.
- Ask your insurer if they offer any discount plans. Most
insurance companies have both vehicle and operator discounts.
- Raising your deductible can lower your premiums. Make sure you
can afford a higher deductible.
- Drive defensively.
- Improve your credit history.
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