Friday, November 4, 2011

A & Q about Auto Insurance Policies

It is common to come across some questions when you think about auto insurance. Let us answer some of general questions that may arise in anyone’s mind.

Whether auto insurance is necessary for driving or no?
Well, you cannot drive if you have no valid auto insurance in your hands. In fact, the laws make it mandatory for all drivers who own a vehicle to get it insured so that in case of any mishap, you have sufficient funds for its coverage in terms of bodily damage, property damage or both.

Any fixed amount for coverage?
Well, it will depend on what region you reside in. The laws of your region would be different from other states. So, minimum auto insurance coverage should be optimum enough to take care of damages that may be caused to passengers and vehicles.

If You Are Denied Auto Insurance?
In case you are being constantly denied of any sort of auto insurance policies because of your bad credit history or driving skills of past that may have tarnished your reputation around, then worry not. You need to get yourself into state assigned risk pool or get auto insurance through non-standard insurer.

Any difference between cancellation and non-renewal of policy?
Simple enough, non renewal means that you do not wish to renew your current auto insurance policy, in case you wish to change your current auto insurance provider. On the other hand, you insurer may not renew your policy if the company finds that you have shifted from a normal policy holder to high risk category.

However, cancellation can be serious. It is done if your driving record is getting seriously bad, you are not paying premium on regular intervals or that you are a fraud. Cancellation of auto insurance may make it difficult for you to get another policy in future.