Q.Is it necessary to insure an
older car that has a low market value? A. Most states require drivers
to have at least some automobile liability insurance. When and
individual suffers losses due to the negligent actions of another
individual, these laws help to ensure that victims of automobile
accidents receive compensation.
Often, the cost of repairing the damages to an older car is greater than
its value. In these cases, the insuring company will usually "total"
the car and give you a check for the car's market value less the
deductible. People with older cars may decide not to purchase any
physical damage coverage.
Q.How
is collision physical damage coverage different from comprehensive
physical damage coverage? A. Collision insurance provides
protection against losses you incur when your automobile collides with
another car or object. Comprehensive insurance provides coverage for
most other direct physical damage losses to your automobile, including
theft. For example, damage to your car from a hailstorm will be covered
under your comprehensive coverage.
Q. How is the cost of automobile insurance
determined? A. A number of factors can
affect the cost of your automobile insurance policy, such as the type of
car you drive, the purpose the car serves, your driving record, and
where the car is garaged. Marital status may also be a factor in the
cost of automobile insurance. Statistically, married people tend to have
fewer and less costly accidents than do single people.
