Coverage frequently asked questions
This term is generally used to describe coverage that provides liability coverage and coverage that helps you to pay for damage to your own vehicle. Keep in mind that "full coverage" doesn't mean that you'll be protected no matter what happens and it has limitations. Examining what policies provide before you sign on the dotted line can ensure that you select car insurance that it appropriate for your budget and requirements.
Usually, when you buy insurance it's for your vehicle only. If you were to be involved in an accident when you were driving a car that you didn't own, the owner's policy would cover any damages that the vehicle sustains. However, if the owner had no insurance or not enough insurance to cover the costs incurred, your insurance would come in to play. This might not be the case with all insurance plans and it's best to examine what providers will cover, should this situation arise.
Rental companies usually include the cost of insurance in their daily fees, so you generally don't need to worry about this. However, rental car coverage under a private passenger policy can come with state-specific rules that you should familiarize yourself with.
It's not normal practice for policies to be terminated following a claim. But if you are found to be at fault when the facts of the situation are analyzed, you will more than likely have no choice but to pay a higher premium. Speaking with an agent can help develop your understanding of potential price increases, should you be involved in an accident.
Most insurance companies offer special discounts if your car is new or near-new. This can include things such as only using officially manufactured parts to repair it with. To find out more it's best to speak with local agents or examine policies from prospective companies.
Generally speaking, it's important to ensure that your insurance provider is away of any modifications that you make to the exterior and interior of your car, so that they can pay out accordingly should you need to make a claim, and so that they charge you the correct price for your premium. Companies may have different limits as to how much you can change the value of your car before your policy needs to be adapted.
Yes, certain companies will provide specialist policies for old cars that can provide you with the exact type of coverage that you're looking for. Whether you drive your classic car regularly, or just take it to the occasional car show, getting the right insurance for it can ensure that you're protected whatever may happen to your pride and joy.