How old does my car have to be before I can drop collision and comprehensive?
Whether it makes economic sense to carry collision and comprehensive coverage doesn’t necessarily depend on how old your vehicle is, but rather what its cash value is. Usually, though, as cars age, they tend to lose value. When your car has little cash value left, then you might consider eliminating collision and comprehensive from your policy. You can check your car’s cash value by consulting a site like the Kelley Blue Book or by hiring an independent appraiser. Because insurance companies will only reimburse you for the actual cash value of your vehicle (which includes depreciation), carrying expensive coverage on an older vehicle of minimal worth makes no sense.
Will I pay higher insurance rates on a red car?
This is one of the most common questions asked on car insurance tips sites. In fact, one-quarter of drivers believe that vehicle color affects car insurance premiums. However, the color of your car actually has no impact on your rates. The characteristics of your car that matter are the body type, make, model, year, and engine size. Of course, your personal demographic information and driving record will also factor into the determination of your rates.
How do I prove financial responsibility if I don’t have to buy a car insurance policy according to my state’s laws?
All states have some form of liability coverage law for drivers, whether it’s mandatory minimum coverage levels or proof of financial responsibility. In states that don’t require the purchase of an insurance policy, the driver has the option of demonstrating financial responsibility instead of buying a policy. In Vermont, for example, drivers have the option of showing proof of self-insurance of at least $115,000 to the commissioner in lieu of purchasing a policy. For car insurance tips on your state’s laws, go to the department of insurance website for your individual state.
If I have health insurance, do I need personal injury protection (PIP)?
The answer to this question will depend on how good your health insurance is. If you are confident that your health policy would handle all medical bills if you were injured in an accident, then personal injury protection is probably unnecessary. On the other hand, if you don’t have health insurance or are underinsured, you might consider purchasing medical payments, or personal injury, coverage. This coverage will pay for your injuries as well as any suffered by your passengers.
Where can I go for more car insurance tips?
Your state’s department of insurance website, the J.D. Power & Associates’ websites, and the indexes of financial rating companies like Moody’s are all excellent resources for additional tips on car insurance.
No comments:
Post a Comment