Is it mandatory to have vehicle insurance?
While a lot of research is carried out by most people, before they finally decide about which automobile to buy, ironically, most of them hardly have any knowledge about auto insurance. And because of this, when the time comes to finally select the coverage for the vehicle, most people have a lot of questions. Here in this article, we shall try to find out the most frequently asked questions on auto insurance and also help you get the answers to them.
The Most Frequently Asked Questions On Auto Insurance
Is it mandatory to have vehicle insurance?
Though the regulations for vehicle insurance tend to be different from one state to another, in most of them, it is mandatory to have a basic coverage for the driver. In some others, you will just need to show some financial responsibility.
What will happen to me if I do not have auto insurance?
You can be charged a penalty in 14854, NY, if the police catch you driving without insurance or some proof showing financial responsibility. When you do not have car insurance and end up in an accident resulting in damages to property or injuring someone else, you might have to make a payment from your own pocket and it can be quite a bit. On the other hand, if you violate the law of financial responsibility, you might be barred from driving and even charged a fine.
What exactly is auto insurance?
This is an insurance coverage offered by a company that protects you against financial loss that can happen from any accident. The coverage includes expenses from accidents, medical costs, vehicle and property damage and liability.
Is it necessary to have the insurance and the car loan for the same person?
Yes this is a requirement in most cases.
How are car insurance premiums decided?
There are actually many criteria's for this that includes of course, the make and the model of your automobile, your driving record, credit history, age, and even the area of the city where you stay. The company offering the coverage will take into consideration all this information and then calculate the amount due.
Does the premium amount increase if there is an accident?
Yes in certain cases it does. This all depends on your driving record, the history you maintain with the insurance company and also on how serious the accident was.
Are you allowed to drive your brother or sister's car?
In most cases, it is a problem because since you are staying together, you are considered as a family member under the person's policy. And if you were not added to the policy, then the person in whose name the policy is, may be denied coverage because it was not mentioned in the application. However, if you are just occasionally driving the car, then there should be no problems. The vehicle insurance company makes all calculations based on the idea that the person in whose name the policy has been opened is the driver.