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Top 5 Car Insurance Questions – Answered!

January 22, 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 for car insurance?

There is no reason you can’t shop around for car insurance quotes 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 rates 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 insurance 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. Most insurance companies have 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.

  • Nestor

    there is no point in trying to get cheap car insurance in Ontario, insurance companies are the biggest donors to the police federation, the cops issue you tickets and your insurance goes up, the city gets revenue and the insurance companies raise your rates, regarding on convictions, which the poor motorist has no chance of winning, it’s like abuse which the cops and the insurance companies heap upon motorist, it’s not the price of gas going up these days its the cops and the insurance companies as the cell phone and cable companies trying to make the most money as they can

  • Rosarinho Tellis

    Thank you for the above information, I was just looking for it.I want some more info regarding–how long an accident remains in my profile? Does it vary from company to company. My understanding was, it was for only three years and then automatically it get removed, or I have to ask the company to do so.
    Thank you.
    very appreciative.

  • Wilfred O’ Connor

    I filled in the info for a quote. It kept going back and saying I could not become a principal pior to obtaining a driving licence. I have a drivers license since 1957 or there abouts. I have always had insurance so I di not know what the problem is. Could someone give me a call ASAP. Thank you! Phone # 416 438 9724

  • Nick – InsuranceHotline.com

    Hi Rosarinho,

    An accident stays on your driving record for six (6) years; and a ticket stays on for three (3) years.

    Let us know if you have another questions!

  • Nick – InsuranceHotline.com

    Hello Wilfred,

    Simply change the date to 1958 or onwards. It should not make a difference. Once you get a rate, just let the insurance company know the exact date of your licence.

    Thank you.