Question and Answers - Your Car Insurance Questions Answered

This section of our site is dedicated to answering the most frequently asked questions along with answers to questions you may ask by either using our contact us page or the form below.

Question: What are Car Financial Responsibility Laws?

Car Financial Responsibility Laws state that you should be able to prove that you can pay for the financial losses of another party in the event of an accident caused by your car. Car insurance proves that you are capable of paying and so it is preferred by the majority of drivers. Another way to show that you are financially responsible is to give a cash deposit to the Department of Motor Vehicles.

Question: What if I drive my car without owning car insurance?

Car insurance laws change from state to state and are stringent. If you don't purchase car insurance and choose to continue driving a car, fines and penalties can be imposed on you. You can also lose your driver's license and have your car impounded. You will also be charged for breaking the law and you will have a police record. Also, you will have to pay for the injuries caused to the people involved in the accident as well as the damage caused to their property.

Question: Who is Covered?

The person who drives your car at the time of an accident is covered. He/she needs to have your permission to use the vehicle. The insurer is the person named on the policy and his/her spouse. Members of your family who have a driver's license are to be listed on your insurance policy.

Question: What are the Best Liability Limits?

Car insurance agents believe that state limits are not adequate. The best limits to have for an average driver are 100/300/100, which means

• $100,000 for bodily injuries per person.
• $300,000 for bodily injury per accident.
• $100,000 for property damage per accident.

Question: What is the difference between comprehensive and collision?

Collision coverage covers the cost following a collision with another car. Comprehensive coverage covers the damage from other mishaps like fire and theft. It is recommended to have both of these types of coverage if you are a frequent driver.

Question: Why does the insurance cost more?

Your car insurance premium is determined by various factors: The type of car you drive, the location you live in, the mileage of your car, your age, your driving record and the coverage you want.

Question: How does my driving record affect the premium?

The car insurance company determines the premium based on your driving records of the last three to five years, which they order from the Department of Motor Vehicles.

Question: How does bad driving affect insurance?

The insurance company will not insure you if you, or the relative you are staying with, has a poor driving record.

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