When it comes to the best car insurance, questions are common. Don’t be in the dark when it comes to your car insurance. Continue reading to learn the answers to three of the most commonly asked car insurance questions.
Why Should I Buy More Coverage than My State Requires?
Every state in the U.S. requires a minimum amount of car insurance. In most cases, however, the minimum is not enough to protect you in the event of an accident. Drivers in Wisconsin, for example, must maintain a minimum of $10,000 in property damage liability, as well as a total of $50,000 for bodily injury and death liability per accident. These coverage amounts are not nearly enough to replace a victim’s brand new vehicle in an accident, and they are probably not enough to cover the cost of medical expenses, lost wages, legal defense fees and other liability expenses. Not to mention, liability-only protection does nothing to reimburse you for your own losses.
At Homewood Insurance Agency, we recommend that our clients find coverage specifically tailored to meet their needs, and not only for the purpose of satisfying Wisconsin’s Financial Responsibility law. Recommended coverage usually includes increased property damage and bodily injury liability limits, as well as the addition of collision coverage and medical payment to reimburse you for your own vehicle repairs and medical expenses. We may also recommend the inclusion of other types of protection, such as comprehensive insurance, which pays for repairs to your vehicle caused by non-accident related claims. Examples include theft, vandalism, and falling objects.
The bottom line is, buy the right amount of insurance to satisfy your needs, and not just the needs of the state of Wisconsin.
Why Did My Car Insurance Rates Go Up?
The best car insurance on earth is not immune from seeing a rate increase. Although this can be frustrating, there is likely a good explanation. There are obvious reasons that your insurance rates may have gone up such as receiving a speeding ticket or filing a claim on your insurance policy; but what if you have a perfect record?
One thing is to keep in mind that your individual risk profile is constantly changing and evolving. Even life changes can alter your risk profile, causing rates to rise. Perhaps your credit score changed, or you moved to a new neighborhood. In addition, insurance premiums are affected by factors beyond your control, such as inflation. As the cost of vehicle repairs and medical payments rise, for example, so do rates.
Why Do Teenagers Cost so Much to Insure?
Adding a teen to your insurance policy could give you sticker shock. After all, your rates could easily double overnight by adding a 16-year old driver to your coverage. The reason for his is that young drivers pose a much greater risk to insurers than any other age group. According to the Centers for Disease Control, teenagers ages 16-19 are more likely to be in a car accident than any other demographic. On average, they are 3 times more likely to be in a crash than drivers age 20 or older.
Fortunately, there are still ways to minimize the effect. If your teenager maintains a B average in high school or makes the Dean’s List in college, he or she may qualify for as much as a 20 percent discount on car insurance premiums. In addition, a teenager who voluntarily completes a qualified safe driver discount may be eligible for an additional discount on coverage.
Answers to Your Car Insurance Questions
You probably have your own car insurance question that needs an answer. If that is the case, feel free to give us a call, email us, or request a face-to-face meeting.
