Auto Insurance – Some Frequently Asked Questions
Auto insurance is just one of those subjects in New York most people know very little about. As a result a lot of people are underinsured, or over insured, or pay more than they should. There are a lot of questions to answer when it comes time to get insurance for a new vehicle. This article will attempt to answer some of the most frequently asked questions on auto insurance, in order to help those searching for a little information regarding this important subject.
Q: Is it necessary to have auto insurance?
A: The law varies from state to state, but in most of them, it is mandatory to have at least some basic coverage for the driver. There are some states that merely require the driver to provide proof of financial responsibility.
Q: What will happen without auto insurance?
A: There can be a legal penalty for anyone caught by the police without auto insurance. Without car insurance, the driver has to pay any expenses incurred after an accident, for any injuries or property damage caused. This can add up to a large sum. Should the driver be found at fault, there may even be legal repercussions, like license suspension, fines, or legal fees.
Q: What is auto insurance?
A: This a service offered by a company specifically created to protect people from the financial repercussions of accident or injury in the course of driving a vehicle. It usually covers things like repairs, medical costs, and compensation for damage to property. It can also provide protection from liability, which means payment (or complete avoidance) of legal fees or issues revolving around a car accident.
Q: Must the same person have the car insurance and the car loan?
A: This is actually a requirement in most cases.
Q: What determines how much car insurance premiums will be?
A: There are many different criteria that determine the final cost of car insurance, including make and model of the automobile, the driver's driving record, credit history, age, or even place of residence. The insurance provider will consider all of this information while tabulating the final rate for insurance premiums.
Q: In the event of an accident, will the premiums increase?
A: Yes. Or at least in most cases. Drivers with a good driving record, or who have a good history with their insurance company, or have only been involved in a minor accident, may be able to keep current rates.
Q: Can the car of a sibling be driven?
A: Usually someone living in the same home as another person is consider a family member under the car owner's policy. Anyone not added to the policy who gets into an accident may cause repercussions for the policy holder. The insurance is based on the information of the main policy holder, but a sibling driving the car every once in a while should not be a problem.