Wednesday, July 8, 2009
You've Got Q's; We Got the A's
Q: The color of my car affects my insurance rates, right?
A: False. The color of your car does not impact your car insurance rates. What does influence your rate is your vehicle's year, make, model, body type, engine size, safety-features, and anti-theft features, along with your credit history, driving record, and geographic location.
Q: No Fault Insurance means it's not my fault, correct?
A: No. It means that your company will pay for the damage to your vehicle (if physical damage is purchased) regardless of whose fault it is. This type of policy is not available in Iowa and is a state specific type of coverage. I, for one, am thankful that Iowa has not adopted this type of policy!
Q: If I recently paid my insurance bill, the new car I just bought is covered?
A: Yes, to a point. Most insurance companies require that you notify the company of the agent within a specified number of days after the purchase. There is a short grace period where the coverage does automatically transfer from one full coverage vehicle to a new full coverage vehicle.
Q: If I lend my car to a friend and they get into an accident, will their company cover the damages?
A: False. Your car, your responsibility! However, your friend's insurance could act as excess insurance if the damages exceed your policy limits.
Q: I don't want uninsured/underinsured motorist because I don't want to pay for those drivers' cars!
A: This is a common misconception. That coverage is purely for your protection. It pays for your lost wages and medical bills if you are struck by a driver without or not enough coverage (relative to the accident). It does not pay for ANY vehicles, yours or theirs.