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Car Insurance FAQ

What types of car insurance coverage do I need?

Before you start looking for car insurance quotes, it is always best to check your state and/or lender requirements. Every state varies from one to the next on what is required for car insurance, and buying only what you need will save you a fortune on car insurance quotes. It is illegal to drive anywhere in the United States without liability insurance, so this will be the minimum coverage you require. If your car is financed or leased, many lenders or financial institutions will require comprehensive and collision insurance as well to protect them against financial losses as well.

What do insurance companies need from me before they give me a quote?

The more information you have ahead of time the better. When you are contacting insurance companies are comparing quotes online, you will need the names of the people that will be on your policy, information on your insurance history, your driver’s license, your vehicle information (make, model, and VIN if possible), and your driving record. Most of the time insurance companies can pull your records from the DMV if you have your driver’s license available, so you will not need that information handy.

My state does not require comprehensive or collision insurance, and my vehicle is not financed because it is 10 years old. Are they coverages worth purchasing?

In most cases, no. If your vehicle is worth less than the amount of the deductible you have, or would have if you set one, then no, you will not need comprehensive or collision insurance. The reason for this is that it will cost the insurance company more to replace your car than it would be to repair. In the event of collision on a ten year old car, insurance companies will consider it a write off, even if the accident is minor. You will not benefit from collision insurance on an older vehicle, and will benefit greater by putting that money aside for future use in the event a new car or collision repairs are needed.

Will the kind of vehicle I drive have an effect on my car insurance quotes?

Yes. In fact, with your driving record, the kind of car you drive will be a key determining factor in your insurance quote. The reason for this is it is the vehicle the company is insuring, and the less it costs to repair or replace, the less your premiums would be. Generally speaking the bigger the engine in your car, the bigger your premiums would be. As well, the newer the vehicle, the higher the premium will be as well. If you are considering a new or used car purchase, and car insurance costs are a factor in your decision, it is always best to purchase older vehicles or those with smaller engines to decrease your car insurance quotes.