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Common Car Insurance Questions (and Answers)

Clearing Up the Confusion: Your Top Questions Answered

Car insurance can sometimes feel like a maze of confusing terms and complicated jargon. And if we’re being honest, that’s basically what it is — unless you’re an insurance agent, of course. That’s why we’re here to clear a few things up. Let’s talk about some of the most commonly asked car insurance questions (and easy-to-understand answers).

1). What does car insurance actually cover?

Car insurance can cover a multitude of things, but most policies typically covers three main things:

  • Liability: This covers damage you cause to other people’s property. It also covers other people’s injuries in an accident where you were at fault.
  • Collision: This covers damage to your own car in a collision, regardless of who’s at fault.
  • Comprehensive: This covers damage to your car from incidents like theft, vandalism, or natural disasters.

2). What factors affect my car insurance premium?

Several factors can influence your car insurance premium, including:

  • Your driving record: Accidents and traffic violations can increase your premium.
  • Your age and gender: Younger drivers and males typically pay higher premiums.
  • Your location: Living in an area with high crime rates or heavy traffic can increase your premium.
  • Your vehicle: The make, model, and age of your car can affect your premium. The newer your vehicle, the more expensive it is to cover it (which means higher premiums). On the flip side, older and/or safer vehiclesmay berewarded with lower premiums

3). Can I get discounts on car insurance?

Yes! Many insurance companies offer discounts for various reasons, such as:

  • Bundling your car insurance with other policies.
  • Having a clean driving record.
  • Enrolling in a safe driving program with your auto carrier to track your driving habits and save on your premium.
  • Completing a defensive driving course.
  • Installing safety features in your car.

4). Do I need car insurance if I don’t drive often?

Yes. Even if you don’t drive often, you still need to have car insurance. Most states require you to have at least liability coverage to legally drive. But aside from being a legal requirement, car insurance is also just a great financial decision. It’s a must for anyone who can’t afford to pay out-of-pocket for losses and damages (and spoiler alert: that’s most people).

5). What happens if I’m in an accident and don’t have insurance?

If you’re in an accident and don’t have insurance, you could face severe consequences, including:

  • Financial responsibility for damages and injuries.
  • Legal penalties, such as fines, license suspension, or even jail time.
  • Difficulty obtaining insurance in the future and higher premiums.

6). How can I lower my car insurance premium?

There are several ways to lower your car insurance premium, including:

  • Shopping around for the best rates.
  • Increasing your deductible.
  • Taking advantage of discounts.
  • Maintaining a clean driving record.

7). How do I find a good policy?

That’s where we can help. Avalue Insurance is a team of insurance pros who love helping people find policies that they can feel good about. Our friendly team is here to help you find the perfect coverage for your wants, needs, and budget. Let us take the confusion out of car insurance. Contact us today to speak with one of our car insurance specialists in Colorado! 

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