Auto Insurance - What You Need To Know

Auto Insurance - What You Need To Know

by Barry Friedmann

When you apply for an auto insurance quote, you have no idea how much information the auto insurance company already know about you, and that could affect the premium you will have to pay or even prevent you acquiring auto insurance, if you are considered a bad risk.

If you have a really good credit rating, because you always pay your debts in good time, you could achieve a high rating. In comparison with a person who regularly gets behind in their payments of their accounts. Insurance scores mostly move in the same direction as your credit history, but not always. Your credit report doesn't reflect your auto insurance risk score.

You will do well in making sure that you have conducted your financial life well, before you actually apply for auto insurance.

Other things that could effect acceptance of your auto insurance policy is your driving record, your previous claims history, and where you live. The state that you live in usually has a required minimum auto coverage and some states will also require that you have personal injury protection. It would be a good idea to check your state's requirements and verify how much the current minimum is, as well as any additional requirements required to place auto insurance.
If you have had and previous car accidents, the insurance company you are applying to for auto insurance need to be notified of all the details.

The insurance company will always be interested in their potential auto insurance losses.
If you want to look at your own motor vehicle insurance report, you can access a copy from your state's department, and there are numerous companies who you can obtain your credit history from: i.e.: Truecredit, Experian, etc.

Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible, this means it does not cover you or anyone else who may be in your car, only the person driving the other vehicle. This will protect you against medical bills, loss of income and pain or suffering. If you should require legal defense, you will be covered for that as well. It is possible that a lawsuit be filed against you by another party, and you will want enough auto insurance to cover your expenses without you losing all your personal assets. All this should be stated in your policy.

Complete auto insurance cover for your vehicle is called comprehensive insurance, and that will cover damage to your car if you have an accident, by flood, fire or animals or if your car is stolen. The insurance policy will pay to fix your car, less your excess attached to your policy. The excess is the deductible that you arrange to pay out of your pocket before claiming from the insurance company. In order to keep your premiums affordable, one usually selects as high a deductible as what you can afford.

If you are driving an old car you could drop this coverage, as one is usually only covered up to the limit of the car value.

Your spouse would usually also be insured if you have named him/her on your policy. You need to confirm this with your insurance company. If you have a boy/girlfriend and s/he uses your car and is involved in an accident, the insurance company may not pay your claim, unless s/he has been added to your auto insurance policy.

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