Reader’s Question:

With regards to auto insurance, what do you have to do if you have a bad credit score?

Frances

Seattle WA

Credit score is a major consideration in most of the insurance companies in determining rates of how much one can avail of. It was also supported by the Federal government which states that credit score is a good predictors of one’s claims. While it is true that when one have a bad credit its difficult to avail car insurance.

The problem with some insurance companies, when you have a bad credit line, they will not stop your policy but will increase your premiums maybe to cover up your standing on your credit problems. In fixing your credit report it is quite a long process which needs most of your time, effort and resources as well. If you consider repairing your credit line find a company that is not looking at your credit rating when applying for car insurance policy.

After knowing a suitable company that can cater your needs, be sure to repair your credit the earlier the better cause you can get some quotes from insurance companies that acknowledge credit score in your premiums.

It is also important to find an auto insurance specialist that will help you find the right car insurance company that will cater to your car insurance needs.

Reader’s Question:

Hi there, I would just like to confirm some rumors I heard that auto insurance policies are cheaper for female drivers? If it’s true, would you know why that is?

Luke

Seattle, WA

The female population in general do get cheaper auto insurance policies than the males of our species. Auto insurers site that statistics show females less likely to be in a driving accident than males. Not only that, the damage done by a female driver also tends to be lesser than that of a male driver. Due to these findings, they are a bit kinder to females when coming up with auto insurance policies as they pose less risk of the auto insurance companies having to shell out money to cover the costs of auto insurance claims.

This being said, it is important to note that it is not only gender that affects the auto insurance policies and the rate of premiums. Other factors that affect the premiums are age, driving history, claims history, vehicle make and model, vehicle safety ratings, and credit history, among others. In general, being younger than 21, having tickets, making claims on auto insurance policies, buying more expensive vehicles, and having bad credit history will negatively affect the premiums that you pay.

It is highly recommended that the insured review their auto insurance policies annually and compare rates from different auto insurance providers to ensure that they find the most competitive deals.

Reader’s Question:

My daughter is a straight-A student who has a squeaky clean driving record. I think that it is time for her to have her new car. Can anyone here help me to find low-cost teenage auto insurance policies with coverage that will best fit my daughter?

Gilbert

Boise, ID

Giving your daughter her own car is going to be like a coming of age event for her since this is going to be a beginning of a new life for her. She shall now be trained on how life on the road is, with all its ups and downs.

However, auto insurance policies for teenagers do not come as cheap as those of standard ones for adults. This may be disappointing at first, but you just have to understand the fact that companies are just trying to balance out the financial risks involved. Statistics show teenage kids’ predisposition to reckless driving with the number of accidents involving them. So, this means that teenage drivers are considered high-risk drivers.

What you can just do now is try to find auto insurance policies with prices that are within your reach. Do not forget that your coverage should be sufficient enough to fully protect your daughter since this is going to be her very first car. You can then try to lower the prices by availing of “good student” discounts and female driver discounts. If you buy her an older car with various safety features, you could then avail of some more auto insurance discounts. Enrolling her in driving courses should also make her eligible for some more discounts. You need to remember that you have to prove that as much as possible your daughter is not going to be a pain in the ass.

After having lowered the prices of the different auto insurance policies with all the discounts you could get, you should then be able to compare and find out which one is the best for your daughter.

Reader’s Question:

I want to learn more about my auto insurance. There are some terms that are not clear to me. Can an automobile insurance specialist help me with that?

Carl

Alhambra, CA

Most definitely, Carl. After you get an auto insurance quote, say online, for example, I advise you to go ahead and contact an automobile insurance specialist. This is actually most practical. The quote you get online are accurate up to the point of the information you disclose to them in the answer sheet that you fill out. But sometimes you forget or maybe omit some details–details that, in the long run, matter not only for your auto insurance but in the premiums that you will be paying. Actually talking with an automobile insurance specialist ensures that you get all or the most important details covered. You benefit most in the interaction: you get to ask questions, make up different scenarios that you think are likely to happen, you would know things that are not available in their web site . Different companies have different takes on things, so it is best to get a vivid picture of each.

There are several ways of getting in touch with an automobile insurance specialist–though email and chat in their website, over the phone, or you could visit their offices. I know this is kinda in the process of actually making a commitment, but if you want to be extra careful before the actual plunge, this is the way to go.

Reader’s Question:

I am a beginner driver and am quite unfamiliar with auto insurance. What should I look for when I compare auto insurance policies of different companies?

Grant

Grand Rapids, MI

When you compare auto insurance policies, the first thing that should be considered are the rates. As there are about 700 major insurance carriers in the whole country, finding those competitive rates should not be difficult. Secondly, when you are comparing the rates of auto insurance companies, make sure that they are for the same amount of coverage that you wish to obtain. The best company should offer the most auto insurance coverage for the most reasonable rates.

And this is why it is very vital to know first your state’s minimum auto insurance requirements, so that you know which insurance to obtain quotes for. Michigan’s observance of the no-fault law has made Personal Injury Protection (PIP) a requirement to all of its motorists. This means that motorists involved in traffic accidents will be covered by their respective insurers regardless of who was responsible for the mishap. Those who have an extensive health plan opt to obtain only the minimum levels of PIP which is at $10,000. Liability Insurance also has to be obtained. Bodily Injury Liability (BIL) for one person is set at $20,000, $40,000 for two or more victims you hurt in an accident. Property Damage Liability (PDL) of $10,000 has to be obtained, as well, and should be able to pay for destroyed public or private properties up to $10,000.

Reader’s Question:

I am not that familiar with the Internet, so I am here to ask if it is true that I can buy cheap auto insurance policies when I go online. I am a senior citizen, by the way, who lives in Indiana.

Enid

Indianapolis, IN

Enid, I need to tell you that you made the right choice when you decided to go online to gather information on cheap auto insurance policies. This would make you more comfortable in dealing with people on the Internet, and it would make you less fearful of technological advancements, like most people your age, I would say.

I have to tell you that the range of quotes you would get from Web sites of auto insurance companies on the Internet is just the same as the ones you would get when you check with them in person. Auto insurance policies found on the Internet are not automatically cheap just because they are online. The main thing is that, through the Internet, you would be able to save more time and effort. You see, instead of having to take time off from your other money-generating schemes just to acquire auto insurance, you could just log in and go through the whole process of application on the Internet while doing other stuff, thus saving you the money you would not have earned.

In any case, auto insurance policies for senior citizens are generally cheaper. As with most other products and services, senior citizens are entitled to 10% or more discounts. This automatically gives any senior citizen the advantage of having cheap premiums. Just do not forget to demand for this discount.

Just a reminder: Before buying auto insurance policies online, check the list of licensed auto insurance companies from Indiana’s Department of Insurance. I’m sure you would not want to go about wasting your money on fake auto insurance.

Tags: auto insurance online, buy car insurance, cheap auto insurance, senior car insurance

Reader’s Question:

What are the minimum auto insurance requirements in the State of Colorado?

Patrick

Denver, CO

As in all states in America, Colorado imposes financial responsibility to all of its motorists. This requires any Coloradoan to show proof of financial capacity to pay for damages caused following ill-fated accidents. This state imposes 25/50/15 minimum insurance. At any one accident, the at-fault driver’s auto insurance company will pay for medical injuries sustained by the other driver up to the amount of $25,000. If there are other passengers in the other party’s car, the insurer may shoulder up to $50,000 for treatment of injuries and immediate rehabilitation. Meanwhile, $15,000 will be apportioned for any ruined property.

But having minimum liability auto insurance is not really enough. Drivers are advised to always get as much insurance coverage as they can afford. Especially now that vehicle repair and medical treatment are on steady increase, adding collision and comprehensive insurance in your policy will prove to be handy in cases where you cause an accident where your own car was also ruined. This type of auto insurance will give you the privilege of having your vehicle patched up at the insurer’s expense. Also, you should think about getting underinsured/uninsured motorist insurance. This will lend a hand in instances where an uninsured driver wrecks your car and injures you.

Tags: auto insurance, auto insurance coverage, liability insurance

Reader’s Question:

Are there any auto insurance specialists here? My question: Am I required to have Personal Injury Protection (PIP) here in Florida?

Ben

Jacksonville, FL

I’m not what you can call an auto insurance specialist, but I do know some things about auto insurance. So, to answer your question, Ben: Some people in the United States aren’t actually required to do so. But in Florida, drivers are required to get PIP (Personal Injury Protection). This is auto insurance coverage that pays for your, your passengers’ and your family’s expenses for hospitalization, doctor’s fees and medicine in case you have an accident on the road. This may also reimburse you for your lost income because while recovering, you may not be able to work.

The minimum amount set by the state is ten thousand dollars ($10, 000). This is, by the way, in addition to what is called the Property Damage Liability, which covers the damages to the vehicles in any accident. This other auto insurance coverage requirement also has a minimum limit of ten thousand dollars ($10, 000). You, of course, have the option to increase the amount if you find it necessary.

In Florida, it does not matter whether or not you were at fault. Called a no-fault state, the state of Florida requires health insurance companies to cover accident costs regardless of the drivers’ accountability. The catch is you typically can’t sue people for road accidents.

So, there you go. I hope that answers your question. By the way when filing a claim, you must remember that your health insurance policy will only pay the amount that they deem “reasonable” and “necessary.” So, even though you have PIP, you might still have to spend more for some of your medical expenses.

Tags: auto insurance, auto insurance claims, auto insurance coverage, auto insurance policy, no-fault