Auto Insurance Company FAQs

What is auto insurance? Most states require the owner of a vehicle to have a certain minimum coverage. But to protect oneself from law suits and expensive repair bills, it makes sense for the customer to go for more than the minimum coverage.

What is liability insurance?

Liability insurance is the coverage that the insurance policy gives the consumer, if he/she has caused an accident that has resulted in bodily injury to another party and/or damage to the property of another person. Bodily injury coverage pays for the medical expenses and the likely loss of wages, whilst property coverage pays for the cost of repair or even replacement for the vehicle of the victim.

What is a 20/40/10?

These are the liability coverage limits. Instead of presenting in terms of thousands of dollars, limits are presented in a series of numbers. 20/40/10 stands for $ 20,000/40,000/10,000, where $20,000 is the coverage for the bodily injury per person, $40,000 is the coverage for the bodily injury per vehicle. $10,000 is the property damage coverage per accident.

Is the minimum liability coverage limit the same, wherever one lives in the US?

It is different in all the fifty states. In Texas, for example one has to purchase at least 20/40/15 liability coverage limits. In California, it is 15/30/5. In New York it is 25/50/15.

It makes sense for the owner to know the local coverage limit and have a coverage which is more than the limit.

How important is the driver?s history in getting a good offer from an insurance company?

Owners with good driving habits are generally rewarded with discounts by the auto insurance companies. These may include people with airbags and centralized locks in their vehicles, people with no tickets history or driving offences etc.

What is an SR-22?

SR-22 is a form that proves that one carries auto insurance. SR-22 status is given for people falling in category of high risk. All the states require SR-22 for people who have had a past history of serious driving violations like drunken driving and reckless driving.

What is no fault insurance?

Several legislations in the US provide coverage like the ?no fault insurance,? where the victim should only prove his/her injury to claim damages from the insurers.

How does one know which auto insurance to choose?

Owners of the vehicles would be advised to choose companies with good credit worthiness. These companies are rated as A, AA, and beyond. The above points can be the best guidelines for any auto owner in choosing the right auto insurance company.

Car Insurance Companies – They Know More Than You Think

When you apply for auto insurance, even when getting an online quote, you’d be surprised by the amount of information the insurance companies go through before telling you how much your premiums will be!

What are They Looking For?

The number one thing that insurers always look for is a clean driving record.  They will investigate your record in the state you’re living in as well as every other state in the country via a central database.  They will verify your birth date and compare it to other personal information to confirm that you are who you say.  They will dig into your driving records everyplace you’ve been issued a driver’s license and also cross-index other insurance records.  All this can take place in just a few minutes-or seconds, depending on the speed of their computers!

But that’s not all that insurance companies are looking for; you’ll also find that they thoroughly check out your credit report.

Why Should They Care About My Credit Score?

Your mother or grandmother may have told you that she can look at your friends and see your future.  Well, insurance companies can look at your credit score and see future!  Like the friends you choose can show your character, your credit score indicates your sense of personal responsibility. 

Let’s say that you’ve made some mistakes in the past and your credit score isn’t so great.  You’ve maxed out your credit cards during a rough patch and are paying them off with minimum payments.  You have no savings, a couple of late payments on record and your credit score is in the low 600’s.  This tells the insurance company that you don’t think about the future much and probably don’t take precautions against unexpected financial downturns.  You’re someone who is living in the present and not looking towards the future.  Is that accurate?

Whether that’s a true picture of someone with that credit score and history, that’s what the insurance companies see and what their statistics tell them is a logical conclusion.  Their data also tells them that a person with such a low score also has a high risk score-they are more likely to make a claim than someone with a higher credit score. 

Don’t Ask for Trouble 

Keep an eye on your credit report and make sure that it is accurate, checking it at least once annually.  Improve it as much as possible, paying more than minimum payments and specifying that the extra go toward the principle.  You’ll be rid of credit card debt in half the time if you pay in that manner and it will look good on your credit report. 

Don’t try to toggle your risk factor by omitting details about your driving record!  If you leave out citations or convictions on your application or deny that they exist, you could be setting yourself up for a fraud charge.  Even if you aren’t charged with trying to defraud the insurance company, it will be on your record for every other insurer to see. 

In short, be frugal and honest!  Good money management and an application that is factual will definitely save you money on your auto insurance. 

Top 10 Auto Insurance Companies Info

There are many qualities that make a company one of the top 10 auto insurance companies out there. Central to the qualities include level of customer service, policy price, level of deductible, and level of coverage. That being said, the top 10 auto insurance companies for one person may be totally different than the top 10 auto insurance companies of another person. What determines a good insurance company is your current needs. A driver who is need of minimum coverage will have a different top 10 than a person who needs full coverage. Whatever your need is, it is important to research at least 10 different auto insurance companies before making a purchase.

The easiest place to research car insurance providers is the internet. After you determine what your insurance needs are it is important to visit the websites of a few different companies. The information provided on the websites will allow you to formulate an opinion regarding how good the provider would be for you. On each website you can also request a free rate quote. Requesting several free rate quotes will allow you to compare them together. Once you have researched at least 10 different auto insurance companies you can begin to formulate a top 10 list given your current wants and needs.

Determining what the top 10 insurance companies are is up to each individual driver and their current situation. Since no situations are alike it is hard to say which companies are best. Your desired level of coverage and desired level of payment will allow you to formulate a top 10 list that works for you.

List of top 10 companies:

Allstate
Amica
Progressive
Geico
esurance
Safeauto
GMAC
Liberty
Nationwide
Erie Insurance.