There are so many questions to ask about auto insurance, a sometimes complicated and complex subject. Following are some of the frequently asked questions regarding vehicle insurance and some answers that might help some have a better understanding of insurance in general.
Q: What if someone borrows my car and gets into an accident? Whose insurance applies - mine or theirs?
A: The liability, in general, follows the car. Therefore in most cases, the insurance of the car's owner would apply. If the driver has liability insurance, however, it should pay any costs that are above and beyond the car owner's insurance limits.
Q : What if a child goes to college with a car owned by one of his or her parents? Are they covered under the auto insurance policy of the parent?
A: This actually depends upon the insurance provider supplying the policy. Ask the insurance company and check to see if the child is covered under the policy, before the child goes to college. Some preemptive action will prevent unnecessary conflict in the future.
Q: Is "gap" insurance necessary?
A: Gap insurance is only necessary if the car owner is on finance and still owes more than the value of the vehicle. Otherwise it is not necessary.
Q: How can I cover my teenager without my rates going up significantly?
A: This is a difficult question. The reason that teenagers cost so much more in insurance is because they are a greater risk. Policy holders with one relatively expensive car will just have a more expensive policy, and there is no way around that. It may be best to purchase a cheaper car for the teenager in question, which will be cheaper to insure, as well.
Q: My insurance company does not know that I bought a new car yet. Is my policy still valid?
A: It is important to notify the insurance company whenever there is either a change of vehicle or there is a new vehicle to be insured. In some cases, the new vehicle will be automatically covered, but sometimes the type of vehicle can be a factor which can delay the revalidation of the insurance policy.
Q: I'm going on vacation. Will my auto insurance also cover the rental car I'll be using while I'm away?
A: There are a lot of auto insurance providers that include rental car coverage, but there may be stipulations that apply. Check the details with the insurance company before going on the trip, just to make sure. Phoning the company directly to get an answer right from an insurance agent is the best bet. It's better to take the little bit of extra effort than to be found without proper insurance in a time of need.