Why
and how are policies priced for different drivers?
Drivers are grouped according to the level
of risk each one poses--i.e., the amount of loss incurred by
insurers within various categories of policy holders. For
various reasons, drivers are categorized by:
-
Sex--Men have more accidents on
the road than women.
-
Age--Drivers under 25 (and, for
some insurers, under 30) are considered at higher risk of
having an accident.
-
Marital Status--Married drivers
tend to have fewer accidents than single drivers.
-
Personal Driving Record--Years of
driving experience, accidents, speeding tickets and
drunk-driving offenses are all factors in determining how much
of a risk you pose as a motorist.
-
How You Use Your Vehicle--If you
commute by car during rush hours, you're at greater risk of
having an accident than if you only drive for errands and
recreation on the weekends. Drivers who use their own vehicles
for business also are considered to be at greater risk
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What is an SR-22?
SR-22 is a form that shows that you have
auto insurance. It is required by the state for drivers who are
high risk. Here are some of the reasons a state might require you
to file an SR-22 form:
-
DUI (drunk driving)
-
serious moving violations such as
reckless driving
-
racking up a lot of highway points in a
short period of time
-
being pegged as a habitual traffic
offender
-
causing an accident while uninsured.
Regulations vary from state to state, but
high-risk drivers usually have to carry SR-22 insurance for three
years. To find out more about regulations specific to your state,
choose your state from the pull-down menu above.
More insurance companies are now willing to
sell policies to drivers who have SR-22 status; however, those
policies are going to be more costly than a standard auto policy.
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Which coverage pay
for damages to my vehicle?
Depending on what kind of damage your car
suffers, one of your physical damage coverages (comprehensive or
collision insurance) will pay for the damages.
If your car is hit by a deer or other
animal, stolen, catches on fire, or is vandalized, your
comprehensive coverage will kick in. If you crash into something
and crunch your car, your collision coverage will kick in.
Both of these coverages are optional and, of
course, adding them to your policy will raise your insurance
premium
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How
does where I live affect my premium?
Where you live (or, more precisely, where you
keep your car) has a bearing on your chances of having an accident
or becoming a victim of theft or vandalism. That's why a vehicle
owner in Brooklyn, New York, pays a higher rate than the owner of an
identical vehicle in Casper, Wyoming.
Other factors affecting regional insurance
rates include time and efficiency of police response and law
enforcement, local road and traffic conditions and the quality of
local medical services. Insurers even factor in the litigation rates
in a given area--that is, how many lawsuits are filed, go to trial,
are settled out of court and for how much.
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Why
are rates different for different cars, even if the cars cost the
same?
Vehicles are also grouped into categories
according to their likelihood of being damaged, vandalized or
stolen. Insurers generally consider the size and type of vehicle, as
well as the value and the cost of repairs (which can vary greatly,
even on vehicles that cost roughly the same). Thus, a new station
wagon is expected to hold up better in an accident than a sports car
or a subcompact.
Putting insurance aside, safety is key when
buying an automobile. Your life depends on it! Some cars are
considered safer than others because of their performance record in
safety tests and real accidents.
That's why you should research insurance
coverage before you buy your car. It helps you to understand the
actual cost and indicates those vehicles with good safety records.
Your insurer will ultimately reward you for putting safety first.
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What
is "no-fault" insurance?
No-fault insurance is a system adopted in some
states that essentially bypasses the conventional legal procedure
which finds fault in an accident. (This is the procedure by which
you hire a lawyer, file suit and possibly go to court to prove the
accident was the other guy's fault.) No-fault simply does away with
the concept of one party or the other being at fault--no lawyers, no
court, no judge, no jury, no lengthy lawsuits against the other
party. This is considered beneficial to taxpayers, because it
eliminates costly legal proceedings that the state must manage, and
to insurance policyholders, because it helps keep rates down.
If you are insured in a no-fault state and
have an accident, you don't go after the other driver. You contact
your own insurer and file a claim. Your own insurance policy
guarantees you immediate compensation for damages, medical expenses,
lost wages, etc.
The type and range of no-fault coverage varies
from state to state. What defines the limitations of no-fault
policies can differ in two critical areas:
-
Threshold--The type of
damage/injury or the cost of repair/recovery that triggers the
need for legal action.
-
Mandated--Benefit Level--The
package of benefits (medical, wage loss, replacement services
and other expenses) your state requires you to carry.
The details of no-fault insurance can be
complicated. Contact us your state's insurance department for
further information.
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What is rental
reimbursement?
Rental
car reimbursement is a policy provision that helps pay for a rental
car when a covered car is damaged or stolen.
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What is Emergency Road
Services?
Emergency Road Service is
an optional coverage that helps pay for towing should your car
become disabled.
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How long will take for my
quote to expire?
All
quotes are saved for six weeks
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What is Collision
Coverage?
Collision
coverage helps pay for auto repair or replacement costs if your car
rolls over or if your car hits another vehicle or object.
When you buy collision coverage, you will be asked to set your
deductible. If you set your deductible at $1,000, this decreases
your premium payments, but you will be required to pay for any
damages up to $1,000 should your car need to be repaired.
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What is Comprehensive?
Comprehensive
coverage helps pay for damage to your car that does not result from
a collision between two moving cars, from a collision with an
object, or from your car rolling over. (These three items tend to be
covered by collision insurance.)
Damages resulting from falling objects, fire, certain natural
disasters, and vandalism are commonly covered. Comprehensive
coverage also generally covers theft.
When you buy comprehensive coverage, you will be asked to set your
deductible. If you set your deductible at $1,000, this decreases
your premium payments, but you will be required to pay for any
damages up to $1,000 should your car need to be repaired.
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What
is medical payments coverage?
Also known as medical
payments to others, this coverage pays medical bills and/or
funeral expenses if a covered driver and/or accompanying
passengers are injured or killed while in an insured vehicle,
regardless of fault in an accident.
This may also cover policyholders and their family members when in
others' vehicles, or when policyholders and their family members
are on foot and hit by a car.
Covered costs are typically subject to certain policy limits.
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What
is liability coverage?
If you are responsible
for injuring another person, or damaging another person's vehicle
or property, liability coverage shields you from related losses.
There are different types of liability coverage, such as property
damage and bodily injury.
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What
is bodily injury coverage?
Bodily injury coverage
is a form of liability coverage that pays for costs such as lost
wages and medical expenses that are incurred if you are at fault
for injuring or killing others. Bodily injury coverage can also
protect you in the event of a lawsuit. This is also sometimes
known as personal injury coverage.
Covered costs are typically subject to policy limits.
Bodily injury coverage is one of the most important types of
coverage in your auto insurance policy.
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What
is property damage coverage?
Property damage is a
form of liability coverage that pays for damages to another
person's property (such as a fence, car, or home) if you cause an
accident. Property damage coverage also helps protect you in event
of a lawsuit.
Covered costs are typically subject to policy limits.
Property damage coverage is one of the most important types of
coverage in your auto policy.
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What
is uninsured motorist coverage?
Uninsured motorist
coverage protects policyholders from drivers who lack auto
insurance entirely. Some states legally require this type of
coverage. CygnetCrest will let you know if this is required in
your state, as well as your state’s mandatory minimum coverage.
Uninsured motorist coverage generally pays for medical costs, lost
wages, and pain and suffering. Uninsured motorist coverage may
also pay for injuries sustained by hit-and-run accidents.
Covered costs are typically subject to policy limits.
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