Auto FAQ:
How are auto insurance rates calculated?
The expense for auto insurance is very important to many drivers. The increasing vehicle repair costs and the surging medical care coverage expenses affects the total cost of auto insurance, lifting insurance premium rates each year.
Auto insurance rates are based on a number of criteria. The policy fee includes of a base rate plus or minus amounts reflecting your age, gender, location, miles driven each year, type of vehicle, credit score, driving record, claims history. The base rate is different for each vehicle type and zip code. While companies may vary in the amounts they assess for each factor, the major rating factors are fairly universal.
How can I save money on auto insurance while maintaining safe levels of coverage?
See Auto Insurance Savings
I was involved in an automobile accident, what should I do?
Notify the police to file an accident report.
Exchange automobile insurance with the other involved party
Notify your insurance company or agent
Locate your automobile policy and have it available with you.
If I have "full coverage" why won't my insurance company pay?
The full coverage definition is often misunderstood. Peruse the declarations page you get from your company to confirm coverages. These will be the coverages you currently have.
Does the other person's insurer provide a rental car for me?
If the other person's insurance company accepts liability, then you are entitled to receive compensation for the loss of use for a reasonable amount of time while it is in the repair shop. If your vehicle is determined to be a total loss most companies will provide a reasonable price for your loss. You must have rental coverage on your policy to receive a rental car if your insurer is handling the damages.
Can I take my car wherever I want to have it fixed?
You have the freedom to select where you want the work to be performed. However, if you choose to take it to a repair shop that is much higher than the insurance company's estimate, you could be liable for amounts over their estimate. The insurer should provide you with names of local reputable car repair shops that are able to complete the repairs satisfactorily for the estimated amount
Can the repair shop use non-dealer parts or used parts?
The insurance company owes you repair or replacement with like-kind and quality parts, which does not mean new parts. If the parts and repairs are guaranteed by the repair shop, and are in the same condition as the parts damaged, they conform to the repair requirements. If you insist on certain parts you may have to pay any costs over their amount.
The insurer has declared my vehicle a total loss but won't pay me enough to replace it. Isn't this illegal?
The insurer owes you the actual cash market value of a comparable vehicle in your local area. A person can research this amount by using quotes from dealers, newspaper ads, and other auto sales publications, as long as the vehicle being sold is comparable to yours in mileage, condition, options, etc. Moreover, the insurer will pay you sales tax on the value of your vehicle, and pay the unused portion of your registration fees. You may have the option of retaining your car (which is now classified as "salvage"). If you do keep it, the insurer will subtract the salvage value from the final settlement, since you are keeping the damaged car.