Car Insurance: What You Need to Know (2024)

FAQs

How to answer auto insurance questions? ›

Stick to the facts: Avoid giving an opinion about anything. Write down the adjuster's name and information for future reference. Do not guess answers: If you do not know the answer to a question, simply say so.

Insurance fraud is a significant concern for the industry. By asking questions, companies can verify the accuracy of their claims and prevent fraudulent activities. This ultimately keeps costs down for honest policyholders.

Auto insurance rates depend on factors such as your age, gender, location, the kind of car you drive, your driving record and possibly even your credit score.

Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursem*nt against losses from an insurance company.

As you hit certain life milestones, some policies, including health insurance and auto insurance, are virtually required, while others like life insurance and disability insurance are strongly encouraged.

State Farm is the biggest auto insurance company in the country by market share, while Progressive, Geico and Allstate are the next three.

Inclusions & exclusions

Any insurance policy will outline exactly what you are covered for – what's 'included' – and exactly what you're not covered for – what's 'excluded'. Make sure you know what these are before you sign up to a policy because you won't be able to make a claim on anything that is excluded.

Your average mileage can affect your insurance rate because the more miles you drive, the more opportunity you have to be involved in an accident or other event. Some insurers, including Progressive, only ask about the length of your commute, while others ask for your estimated annual mileage.

Why am I getting high car insurance quotes? ›

Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost.

In general, car insurance companies charge male drivers more for coverage because they're more likely to get into accidents. But while most states allow insurers to consider gender when setting rates, your age, location, insurance provider and driving record usually make a bigger difference.

On average, drivers with poor credit pay 118 percent more for full coverage car insurance than those with excellent credit. California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.

Car insurance premiums don't automatically go down when you pay off your car, but you can probably lower your premium by dropping coverage that's no longer required. Banks and financing companies who loan you money for your car are called lienholders.

Give brief answers.

Try to answer each question in as few words as possible. Don't explain. If you are specifically asked to explain, do so in as few words and with as little detail as possible.