Read our informative insurance FAQ

Q: Are you in the dark about fundamental aspects of car insurance?
A: We've compiled short explanations of key factors to consider before buying car insurance. Read the sections below carefully.

Q: Why Shop For Auto Insurance?
A: One of the questions frequently heard by insurance agents concerns the need to comparison shop for auto insurance. "I've been insured with XYZ Insurance for ten years and I'm happy with them. Why should I bother to shop around for auto insurance?"

There's a very good answer. Money.

For example, a recent survey compiled by a major auto insurer in Louisiana showed that auto insurance rates varied widely from one company to the next. In fact, the average difference between the highest and lowest companies' rates was in the neighborhood of $600.

Q: Do you need auto insurance?
A: In most states, all motorists are required to have a specified amount of liability insurance, although it's usually not enough to protect you or your home business.

If your auto is financed through a bank or other commercial lender, the lender will require you to carry both collision and comprehensive coverage. If your car is not financed, you don't have to carry this coverage, although most people do so if they have fairly new cars (or valuable older ones).

Q: What are the policy features?
A: Individuals who qualify for our program enjoy the very best protection one can buy for collector vehicles

Q: What should I consider when purchasing automobile insurance?
A: There are a number of factors you should consider when purchasing any product or service, and insurance is no different. Here is a checklist of things you should consider when purchasing automobile insurance.

Don't base your decision on price alone. Base your decision on value - what you get for what you pay. Consider the quality of the company's claims service and consumer education.
Purchase the amount of liability coverage which makes sense for you.
You should decide which optional coverages you want. For example, do you want optional physical damage coverages or is the market value of your car too low to warrant purchasing them.
Once you have decided what you want in your automobile insurance policy, you can now decide who you would like to purchase the insurance from.
You should also decide whether you would like an insurance agent to assist you in your purchasing decision or if you would like to buy the insurance directly from a company that sells insurance over the phone or through the mail. Keeping in mind that no agent equals no service.

Q: What are some practical things I can do to lower my automobile insurance rates?
A: There are a number of things you can do to lower the cost of your automobile insurance. The easiest thing to do is to shop around.

It is not surprising to find quotes on automobile insurance that can vary by hundreds of dollars for the same coverage on the same car. When you shop, be careful to make sure each insurer is offering the same coverage.

Another way to lower the cost of your automobile insurance is to look for any discounts that you may qualify for. For example, many insurers will offer you a discount if you insure multiple cars under the same policy, or if you have had a driver education class in the last five years. Be sure to ask your agent about their discount plans.

Another easy way to lower the cost of your automobile insurance is to increase the deductible. Simply raising your deductible from $250 to $500 can lower your premium sometimes by as much as five or ten percent. However, you should be careful to make sure that you have the financial resources necessary to handle the larger deductible.

Q: Who is covered under an auto policy?
A: Your policy covers you, your spouse, other relatives who live in your household and others who have permission to drive one of your covered vehicles. In a No-fault insurance state, your own policy would provide coverage for bodily injury and/or property damage without regard to fault. Some policies have Named Operator provisions which requires that all drivers must be listed on the policy to be covered.

Q: Auto insurance isn't a "should I or shouldn't I?"
A: Most states have laws requiring you to purchase at least some auto insurance. While specific requirements will vary from one state to another, you will typically be required to buy some level of liability coverage. Other types of auto insurance coverage may be optional or required, depending on the state.

In reality, though, there is often a large gap between the insurance you're required to carry and what you should carry. Even in states with the most stringent requirements, many insurance professionals suggest: (1) that you have a broader scope of coverage (i.e., more types) than the state mandates, and (2) that your coverage limits in most areas exceed the required state minimums. The point made by such professionals is that you should ideally have an appropriate amount of auto insurance, so that you're adequately shielded from certain risks.

Q: What influences the price I pay for auto insurance?
A: There are many factors that play a role in determining the price of your insurance coverage.

One of these is the price of your car. Simply put, a more expensive car will cost more to repair or replace.

Age, gender, and marital status are also important factors. Statistics indicate that drivers under age 25 are involved in more than one-third of all accidents.

Young females have fewer accidents than young males, and married couples have fewer losses than single people. Another contributor to the price of insurance is your driving record.

If you have a history of at-fault accidents and traffic violations, you can expect your premiums to be higher than someone with a clean record. This is because, statistically speaking, your past history indicates that you are more likely to have future accidents.

Finally, the location of your residence also plays a role. If you live in the city, your premiums may be higher than if you lived in the country. This discrepancy is due to the many more opportunities for a loss you will encounter while driving in an urban area.

Q: What is my car worth if it is totaled today?
A: Your insurance company determines the value of a vehicle by using an electronic database of vehicles sold in your area at the time of the loss, unless the relevant state law requires otherwise.