Auto Insurance Frequently Asked Questions
How can I save on auto insurance?
What is Bodily Injury protection?
What is Property Damage Liability?
What is Uninsured Motorist coverage?
Is Underinsured Motorist coverage different from Uninsured Motorist coverage?
I have medical insurance. What is Med Pay and why do I need it?
Do I need collision coverage and what does it cover?
What is Other Than Collision Coverage/Comprehensive Coverage?
Should I buy Rental Car Damage Waiver?
I recently received a
check from my insurance company. Can I cash this check?
How can I save on auto insurance?
Ask
for higher deductibles. Deductibles represent the amount of money you pay
before you make a claim. A higher deductible could save you between $200 and
$500 a year.
- Drop Collision and/or Comprehensive coverage. It may not be cost effective to have full coverage on cars worth less than $1,000.
- Buy a "low profile" car. Before you purchase the car of your dreams, check with your agent to see what it will cost to insure.
- Consider insurance costs when making a move. Costs tend to be lowest in rural communities and highest in cities. Costs also vary greatly from state to state.
- Look for discounts. Check your policy to see if you are getting credits for air bags, anti-lock brakes, automatic seat belts and anti-theft devices.
- Check with your agent about credits for good student (a B-average can save young drivers up to $500 per year), driver training, defensive driver discounts (age may vary from company to company - you don't necessarily have to be over 50).
- You may also be eligible for multi-car credits, account credits (when you have your home and auto with the same insurer), accident-free for 3 years, renewal, etc.
What is Bodily Injury protection?
This coverage protects you against financial loss if someone is killed or injured by your auto, and you are found liable. Your legal expenses and court costs would also be included for a covered suit, as would your bail bond expenses.
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What is Property Damage Liability?
This covers you against financial loss if you are found liable for damage caused by your auto to other people's property (such as a vehicle, building, sign, etc.).
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What is Uninsured Motorist coverage?
This pays damages for bodily injury or death caused by an uninsured or hit-and-run driver who is legally responsible for the accident.
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Is Underinsured Motorist coverage different from Uninsured Motorist coverage?
This coverage pays benefits for bodily injury or death caused by an insured driver whose liability insurance limit is insufficient to cover the losses incurred. It would pay these benefits to you and passengers in your vehicle, or to any pedestrian injured.
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I have medical insurance. What is Med Pay and why do I need it?
This coverage pays up to your policy limit for reasonable medical expenses incurred within three years of an accident. Medical Payments Coverage applies to everyone in your auto. It also applies to you and insured relatives living in your household while in another automobile or when injured by a vehicle while walking.
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Do I need collision coverage and what does it cover?
If your vehicle is valued over $1,000, it is a good idea to retain collision coverage. This pays for the actual cash value of damages to your covered auto (up to its actual cash value) caused by an impact with another vehicle or a stationary or moving object. The amount of your deductible would be subtracted from any loss settlement.
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What is Other Than Collision Coverage/Comprehensive Coverage?
This coverage pays for losses to your covered auto (up to its actual cash value) that are not caused by collision. This includes damage caused by fire, theft, glass breakage, vandalism, riot, windstorm and hail. The amount of your deductible would be subtracted from any loss settlement.
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Should I buy Rental Car Damage Waiver?
"It has been debated for years whether or not a person renting a vehicle should purchase the Collision (or Loss) Damage Waiver from the rental company..." For the full story, read The Top 10 Reasons to Purchase the Rental Car CDW/LDW from the Independent Insurance Agents of America.
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I recently received a check from my insurance company. Can I cash this check?
Look on the check stub. There should be a reference as to why the company has sent this money to you. If you cannot determine the reason, it would be wise to call your agent. It is possible your policy has been cancelled and this is a refund of unearned premium, or there may have been an overpayment. Remember, no one just gives money away...verify it with your agent!
The information contained in this FAQ is intended only as an introduction to some of the products and services offered by Charter Insurance Services. Please contact one of our agents to determine how we can best serve your individual needs.
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