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Common Insurance Questions Answered

January 4, 2013

Car Insurance QuestionsEveryone has insurance questions, and many of the same questions come up again and again. These common questions about how insurance works and how to get the best deal have straightforward answers that will make managing and purchasing an insurance policy easier. Get the answers to all of your questions quickly and easily, and make insurance a little less confusing.

Do I have to wait until my renewal date to shop around?

There is no reason you can’t shop around for insurance before your renewal date, and in fact it could save you a lot of money, especially if you are overpaying on your current policy. There are a few factors to consider when it comes to switching partway through a policy term. The main thing to look at is the potential cost of cancellation penalties and new policy fees at a new company. Take these things into consideration before you switch so you know what the total cost and savings will be. Of course, it costs nothing to compare car insurance quotes and there is no obligation, so there is no reason not to shop around at any time.

What is the different between an agent and a broker?

Many people find the various ways to purchase insurance a little confusing. There are three main ways to buy an insurance policy: directly from the company, through an agent, or through a broker. The first is obvious, but the other two are often confused. An agent is an insurance expert who works for a single insurance company. They sell that company’s products and have a good knowledge of them. A broker is like an agent, selling policies, but usually sells policies for multiple insurance companies. That means they can help you to shop around and find the company and policy that is right for you. Which option you choose depends on your needs and preferences.

How accurate are online insurance quotes?

Online quoting services are among the quickest and easiest ways to get a number of quotes quickly and easily. Many people worry, however, that the quotes will not be accurate. The key to getting accurate quotes online is to enter accurate information. Don’t avoid mentioning a ticket or accident, and be sure to give the correct information about your vehicle and driving habits. While there may be some adjustments to initial quotes later based on more in-depth information, internet quotes requested with accurate information will be highly accurate.

How long do I have to report a newly purchased vehicle to my insurance company?

Most insurance companies allow you a grace period of 14days to report the purchase of a vehicle. This applies whether it is new or used, and whether it is a new policy or replacing a previous vehicle on the policy. It’s important to check with your insurance company to verify their policies. Remember that the grace period is not free insurance; the policy change will be backdated to the purchase date. It’s best to report a purchase immediately to your insurance company; it won’t save you money to wait, but it could save you some problems down the line if there is an accident or other incident with the new car.

Can other people drive under my insurance policy?

You can lend your car to anyone you like, as long as they are a licensed driver meeting the policy standards, and they will be covered under your insurance policy. Bear in mind that this means you can be held responsible for anything that happens while that person is behind the wheel. You could face increases on your insurance rates if there is an accident while a friend or family member is driving your car. Even if that person has their own insurance, the policy on your car will be the first in line in the event of a claim. If the driver is not in compliance with licensing laws, your insurance company can deny coverage.

It’s important not to take any chances when it comes to your insurance coverage, so be sure to check with your insurance representative if you have questions regarding your policy. Every insurance company has slightly different policies, and that means the details can differ from place to place. When it comes to your coverage, check the fine print on your policy and ask any questions that come to mind, both before buying a policy and when making changes.

  • Lynne

    A question:

    I am being paid to act as a driver of my employer’s vehicle. While driving my employer’s vehicle on the highway and with him with me inside the vehicle, the vehicle’s engine catches fire due to inappropriate engine-load ratios. Although myself and my employer make it out of the vehicle on time to escape the fire, the vehicle itself and all its contents burn to the ground on the highway. How does this incident affect my and/or my employer’s upcoming insurance rates / premiums, etc. ?

    Thank you for your response.

    Lynne.

  • Jazz Far

    I have a speeding ticket conviction with three demerite points, how much will that increase my insurance if I have a clean driving record and I am a g2 licenced driver

  • Nick – InsuranceHotline.com

    Hello Jazz,

    Each insurance company is different. It is difficult to specify the amount. You may not experience a high increase if this is your first and only ticket. Typically, those with multiple tickets or accidents on record will face larger increases. It is best to speak with your insurance company.

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