Top Ten Car Insurance Questions and Answers

Got car insurance questions? Here are the top ten car insurance questions complete with answers.

Do I need car insurance to drive my car?

Yes. All states require you to have liability coverage, and some states require you to have uninsured motorist coverage which insures you against losses from an accident caused by an uninsured, underinsured, or hit-and-run driver. Visit your state's department of insurance website to find out what your state's requirements are.

What's the minimum amount of insurance I need?

The minimum amount of coverage in most states is liability coverage. This includes:

* Bodily injury liability which pays for damages and your legal fees if you're held liable in an auto accident and other people are injured or killed.

* Property damage liability which pays to repair or replace the other driver's car when you cause an accident.

What other coverage should I get?

* Collision coverage pays to repair or replace your car when it's damaged in an accident.

* Comprehensive coverage pays to repair or replace your car when it's damaged by fire, theft, vandalism, or acts of nature.

* Personal injury protection coverage pays medical expenses for you and your passengers when you're involved in an accident. It also pays medical expenses for you and your family when you're injured in another person's car or are walking.

Where can I get cheap car insurance?

The best way to get a cheap rate on car insurance is to compare rates from different companies. There are now insurance comparison websites where you can get rates from a number of companies so you can compare all their rates and choose the best one.

Some of these sites even have an online chat feature where you can get answers to any questions you may have from an insurance expert. (See link below.)

How can I lower my premium?

You can lower you premium by raising your deductible. For instance, raising it from $250 to $1,000 can save you 15% to 50% on your yearly premium.

What's a deductible?

A deductible is the amount you must pay toward a claim before your insurance company will pay.

What discounts are available?

Most insurance companies will give you discounts for:

* Insuring both your car and your home with them.

* Installing security devices on your car such as anti-theft devices and burglar alarms.

* Having a good driving record for at least three years.

* Taking a drivers education course.

Does my credit rating affect my rates?

Yes, most car insurance companies now use your credit rating as a factor in determining your car insurance rate.

How do I know the company I choose will pay my claims?

You can check an insurance company's financial rating, which measures its ability to pay claims, at the A.M. Best website (ambest.com)

How do I know the company I pick will give me good service?

You can get insurance company customer satisfaction ratings at the J.D. Power & Associate's website (jdpower.com).

Visit http://www.LowerRateQuotes.com or click on the following link to get cheap car insurance quotes from top-rated companies and see how much you can save. You can get more insurance questions and answers in their Articles section.