Reader’s Question:

I’m hesitant about buying my first car insurance here in Iowa because I’m not sure if I really need it. Why should I have car insurance?

Neil

Davenport, IA

Having a car is one thing and having car insurance is another. And if you have a car, buying car insurance should be as important as getting gas or getting the oil changed. Driving without car insurance is a very irresponsible thing to do. Most people just find it hard to even think about getting a policy simply because of the costs of premium rates, while some people just don’t have enough knowledge regarding the importance of car insurance.

Having enough information can ease your way into the complexities of car insurance policies. And just like driving, you don’t have to be too hasty when it comes to getting a policy.

A car insurance policy is an integral part of being a responsible driver. Being insured means you’re not only protecting yourself but the people around you, as well. What would you do if you get into an accident? If your car gets damaged? Or if you injure a person accidentally? Can you pay for the legal expenses if you get sued due to an accident? With car insurance, the policy can cover these incidents provided that you include them in your coverage and you pay the premium rates regularly. Most car insurance policies have liability coverage, property coverage and medical coverage should accidents happen to you while driving your car. Property coverage usually compensates you should your car gets damaged or stolen. If you hit a person or another object or property, the expenses for those will be paid through the liability coverage in your policy. Most car insurance policies can also cover medical expenses for hospitalization or treatment or even funeral expenses caused by an accident.

Another important reason why you should buy car insurance is that most states, including Iowa, implement certain requirements regarding car insurance coverages. And every time you drive, you need to have with you proof that your car is insured because some states consider driving without insurance a felony and your license may be revoked.

Try checking out online car insurance quotes for free to help you find a good deal regarding car insurance rates. Or get in touch with a local agent there in Iowa to better understand the significance of having car insurance.

Tags: auto insurance coverage, car insurance, car insurance rate, First-Time Buyer

Reader’s Question:

I have a teenager son who just got his driver’s license. Does getting car insurance for him mean that I would be having more expenses?

Wyatt

Cedar Rapids, IA

It must be pretty exciting for your son to have his new car. But you should not be too excited about it because getting teen car insurance means an increase in your expenses. In case you do not know, car insurance companies view those that belong to the age bracket of below 25 years as the greatest risk to them compared to their older counterparts. This is because statistics has proven that in all the accidents that have occurred in the country, the largest percentage involves teen drivers who are at-fault.

So, how does this translate to what you are going to pay for your teenage boy’s car insurance?

Your teenage boy being considered a high-risk driver is tantamount to you paying more because car insurance companies there in Iowa will not offer you lower premiums. High-risk drivers get themselves to more accidents, thus making more claims. The car insurance company in turn loses money because of this. Just remember that the industry is still about making money.

In any case, you should not lose hope because you can still do something in order to lower what you are going to pay for your teenage son’s car insurance. The only way to avail of the cheapest car insurance for your teen is to strategize and plan well on how you are going to reduce the price. Because like I have said, there are ways to lower your expenses.

Tags: auto insurance premium, cheap auto insurance, teen, teen insurance

Reader’s Question:

My car was parked on a street in Des Moines, Iowa and got flooded. Will this be covered by my insurance company?

Jeremy

Des Moines, IA

Hey, Jeremy! Most car insurance companies have coverage for incidents like this. If you had “comprehensive” coverage at the time of the flood in your area in Des Moines, IA, then your insurance company will and must cover your claim.

“Comprehensive” insurance coverage means that your insurance covers your automobile, and sometimes other automobiles that you may be driving, for losses resulting from incidents aside from collision. The coverage generally includes loss caused by any of the following: fire, theft explosion, falling objects, hail, windstorm, water, earthquake, flood, malicious mischief, colliding with a bird or animal, breakage of glass, and riots or civil commotions.

Also, your insurance company will pay the lesser of one: either fixing your vehicle or “totaling” it. And if your insurance company decides to “total” your vehicle, you or your lien holder will be paid the vehicle’s “actual cash value” or ACV. The depreciation of the vehicle would also be taken into consideration in determining its value, as well as the deductibles that you choose to include. I would also like to suggest that you contact your insurance agent there on Des Moines to inquire about your insurance coverage. It’s better to be safe than sorry, I always say!

Tags: auto insurance, Car Insurance Company, comprehensive insurance coverage