According to the Insurance Information Institute, most car owners are underinsured and pay too much for auto insurance. This is partially because many people think they don’t need as much coverage as they do, but it’s also because of the way in which you buy auto insurance can affect your costs and how well you are protected from damages if an accident occurs. If you live in Virginia, you need to know this about your auto insurance.
7 Questions To Ask Your Auto Insurance Agent
Shop around. Once you’ve gathered information and created a list of reputable agents in your area, call them up and ask them questions. While there are many questions that come up when shopping for auto insurance, ask these seven: 1. What’s my deductible? 2. What is not covered under my policy? 3. If I make a claim on my policy, what will it do to my premiums? 4. Do I have coverage outside of Virginia? 5.
Car Insurance Deductibles: What You Should Know
A deductible is a predetermined amount of money that must be paid by you when making a claim. Auto-insurance deductibles can range from $250 to thousands of dollars. When your deductible is high, the price of your insurance is lower.
The True Cost of Driving
Many Virginians don’t realize that their auto insurance rates are based on a risk score. This score reflects how much of a liability risk an individual policyholder is to an insurer. The higher your risk score—the greater likelihood that you will make claims in relation to other drivers—the more expensive your insurance will be. Essentially, these scores work as a basic way for insurers to determine who they should and shouldn’t cover.
How Much Is Your Personal Injury Protection Coverage?
Personal injury protection coverage (PIP) is one of those things that most Virginians understand they have in their car insurance, but don’t really think much more than that. In fact, many residents might not even be sure what PIP is. That’s a mistake. Your PIP coverage can make a big difference if it injures you in an accident—and particularly if it’s an accident caused by someone else.
What Is Uninsured Motorist Coverage on Auto Insurance?
Uninsured motorist coverage is one of several add-ons you can tack onto a car policy. It’s fairly cheap, and if you live in an area where there are lots of uninsured motorists on the road, it might be a good idea. (Uninsured motorist coverage protects you in case someone who injures or damages your car has no insurance.)
Am I Covered For Medical Bills When In Another State?
Probably not. You need a policy with No-Fault coverage if you have passengers in your car or if someone hits you from behind. If a friend rides with you on vacation or if another driver hits you from behind—or simply rear-ends your car at a stoplight—your medical bills won’t covered without No-Fault. In most cases, it’s worth buying more than $5,000 in No-Fault coverage because it may prevent years of legal problems (and even personal bankruptcy) down the road after an accident that wasn’t really your fault. For example: Let’s say a friend was riding in your car and was injured when he opened his door and got struck by another vehicle.
What Other Kinds Of Coverage Are Available on Auto Insurance?
Besides liability and collision, there are a few other coverages that may be important for Virginians. Depending on your financial situation and driving history, comprehensive and/or uninsured motorist coverage may be a good idea. Comprehensive is helpful if you’re at fault in an accident that causes physical damage to another vehicle (like dents or bodywork). If an uninsured driver causes an accident that damages your car, uninsured motorist coverage can help pay for repairs.