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How much insurance do I need? |
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The simple answer is that the more insurance you carry the less a traffic accident will cost you. |
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Do all states have a mandatory insurance minimum? |
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All but three states require you to carry some insurance. |
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Is it different if I have a car loan or lease the vehicle? |
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Yes, you need to check the wording of your auto loan or lease/finance package to see what minimum requirements you have to meet. Most require both collision and comprehensive. |
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What's no fault insurance? |
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Some states require insurance companies to settle claims without considering who is at fault. This speeds up the claims process because all you have to do is to value the claims for damage and personal injuries. |
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How do I get the best value-for-money policy? |
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By getting comparative online quotes from this site, you give yourself the widest choice between different insurance companies. Then it's up to you to pick the best value. |
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How do I get low rates? |
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Hopefully you're a safe driver with no tickets and no recent claims. So act like one of the insurance company actuaries who counts the number of traffic accidents and thefts, and drive a vehicle that's involved in fewer accidents and not likely to be stolen. |
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What are deductibles? |
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This is the amount you agree to pay if you get into an accident and make a claim. |
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What discounts are available? |
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You get discounts for everything from paying a yearly premium instead of monthly instalments to additional antitheft like a tracking device or safety features on your vehicle. |
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What's a tracking device? |
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This is a radio transmitter hidden in your vehicle. If your vehicle is stolen, the transmitter is turned on and the police can find it for you. |
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What's collision cover? |
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This pays for the repair or replacement of any vehicle or object damaged in a collision or if your vehicle rolls over. The maximum you can claim is your vehicle's actual cash value less the deductible. |
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What's comprehensive cover? |
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This pays for damage resulting from whatever perils are listed like fire or flooding. It may also include theft. The maximum you can claim is your vehicle's actual cash value less the deductible. |
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Is it worth paying for uninsured motorist cover? |
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There are a significant number of drivers on the road who either do not carry any insurance or whose insurance is too low to pay out more than a fraction of the costs involved. You can buy additional cover to provide against this risk. |
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What are endorsements? |
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These are terms added on to a standard policy, e.g. when you add a second vehicle to the policy or change the amount of the deductible.
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What are exclusions? |
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You need to look at these carefully to see what is excluded from the cover provided by the policy.
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What's medical payments cover? |
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This pays your medical expenses up to an agreed limit if you're injured in an accident (whether as a driver or a pedestrian). Depending on the cover you buy, it may also include passengers in your vehicle and family members being carried as passengers in another vehicle. It may also include funeral expenses if someone dies. In some states, Personal Injury Protection is mandatory and includes loss of earnings as well as medical expenses.
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What do I do if there's an accident? |
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If you get into a traffic accident, contact the police at the scene and get the names, addresses and insurance details of everyone else involved.
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Can I rent a replacement vehicle? |
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If you have paid for this service in your policy, you can rent a comparable vehicle while your car is off the road.
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How do I make a claim? |
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Most insurance companies now allow online claims.
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What's this actual cash value provision? |
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If you vehicle is totaled, you're only allowed to claim the actual cash value of that vehicle at the time of the accident - that's the original value less depreciation.
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What's bodily injury liability? |
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If you injure someone in an accident by the way you drive, you have to pay the medical expenses for treating that person and damages for pain and suffering.
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