Buying First Car Insurance
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In order to register a car in Massachusetts, you must have automobile insurance. By law, you must purchase four coverages called Compulsory (or Mandatory) Coverages in, at least, minimum amounts required by law, and in higher amounts if you choose to do so. You may also buy a variety of Optional Coverages to suit your needs.
The losses that a person injured in an automobile accident incurs and the damage to property from an accident sometimes may be much greater that the insurance provided by the mandatory coverages. For most drivers, the minimum levels of insurance will not give them enough protection and they may want to insure themselves for other types of losses that may result from automobile accidents. For those reasons, people choose to purchase higher limits of property damage and bodily injury coverage, to purchase collision and comprehensive coverage, or to purchase other types of coverage. An insurance agent or other insurance professional can help you determine what types and levels of coverage you need. Agents and companies must inform you in simple language of your coverage options when you apply for an automobile insurance policy, or if you have questions at any time.
Some of these coverages may be subject to important limitations and exclusions. For example, if you are insuring a used private passenger automobile, an insurer may require it to be inspected before providing comprehensive insurance. The inspection may be deferred for ten calendar days - not including legal holidays and Sundays. If your auto is not inspected within the required time, these coverages will be automatically suspended. You may also be required to buy collision and comprehensive coverage if you have a loan on the car.
Remember, your premium will increase if you choose to purchase higher limits of coverage or optional coverages. You should consult with your agent or insurance company about the coverages and amounts that best fit your financial needs while ensuring that you have the coverage you want should an accident occur.
Because insurance companies are not identical, it is important to obtain information from more than one company. Insurance companies market automobile insurance in two principal ways: through insurance agents or directly online with their sales staff. Agents may represent one or two or many insurers. When you contact an agency about buying auto insurance, start by finding out how many and what companies they represent. You may be able to get cost quotes from several insurers from one or two agencies. Be sure that each cost quote is for the same coverage, and reflects any discounts for which you may be eligible.
Insurers are not identical, and changing companies might reduce the cost of your insurance, but no reliable comparison is possible without a careful review of the products to ensure that they provide identical coverage, offer discounts of equal value, and include policy benefits that are of value to you.
Insurance companies group you with other people who share your general risk characteristics - such as the number of years driving experience. To calculate your individual premium (how much they will charge you), the company uses a base rate for your group, then adjusts it to reflect your individual risk factors and any discounts for which you are eligible. In figuring out your actual premium, insurance companies may consider factors such as your years of driving experience, the number and type of your accidents, the number and type of your traffic violations, and the vehicle you drive. Insurance companies may also consider other risk factors if those factors are relevant to risk and approved by the Commissioner.
Remember, if you or someone on your behalf gives your insurance company false, deceptive, misleading, or incomplete information concerning the description and place of garaging of your car, or the names of those people who drive your car, your insurer may refuse to pay your claims under any or all of the Optional Insurance Parts of your policy.
If your rates increase, it's smart to contact your agent or your insurance company for an explanation. You should also keep in mind that you have every right to shop around for the coverage that works best for you.
If you have a car of low dollar value, you may not want to buy the Collision or Comprehensive coverage unless your lender requires it. But, without this coverage, the insurance company may not pay for a claim arising from an accident.
Your driving record will always be a big factor in determining how much you pay. Driving safely and keeping a clean driving record will reduce your automobile insurance premium regardless of what company you choose.
If your company determines that you are at fault for an accident, it will send you a Notice of At-Fault Accident Determination. If you receive a Notice of At-Fault Accident Determination naming the wrong operator, call your insurance company. Your insurer will take back the incorrect notice and issue a new notice to the right operator.
If your insurance company increases your auto insurance premium because of an accident, you must pay the additional premium while your appeal is pending or your policy will be cancelled. If you win your appeal, you will receive a refund or credit from your insurer for any increased premium you paid.
If you were planning to renew your policy, once you receive an invoice reflecting your new (not estimated) premium and any applicable new deviations or discounts, you have 30 days to change insurance companies without paying a penalty. If you make a change within this 30 day period, you will pay your former insurance company on a pro-rata basis of the new premium until the date coverage with your new insurance company begins. If you choose to switch insurance companies after the 30 day period, you may be subject to a penalty which decreases as your policy year progresses depending on the insurance company to which you transferred your coverage. You should ask your new insurance company whether it will reimburse you for these penalties.
Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
Even if you are buying from a dealership that does not require you to have insurance, it is still a good idea to get it. Cheap auto insurance is sometimes hard to obtain and even harder to keep. This often tempts people into wondering if they can get by without it.
If you want to protect your assets and your future income, you still should consider buying more than just the low third-party limits the state says that you need. Compare different limits and premiums so that you can decide what you need and what you can afford.
As an authorized party that is able to process DMV paperwork, the dealer is obligated to collect certain paperwork to complete the application. Most of the time, the motor vehicle agency wants to see that you have insurance before the tags will be issued.
Having insurance helps you fix the serious repairs, but if your deductible is too high, you might not be able to file a claim. This is why most companies only accept physical damage deductibles of $500 or less.
If you intend to keep your vehicle in storage and not drive it for several months, perhaps due to being in the military, taking an extended vacation, or even going to college, you may be tempted to cancel or not renew your insurance policy.
However, prior to taking this step, you should do some research. Some states, such as Pennsylvania and South Carolina, require that you turn over your car registration and license plate if you give up your auto insurance.
According to the Insurance Information Institute, nearly every state in our nation requires drivers to have at least some type of insurance coverage. This is a legal and financial responsibility of every driver on the road.
So, you have a new car but no insurance. Well, if you do have an insurance agent, it is relatively easy to get coverage for your new vehicle with an auto insurance policy from your dealership but be careful: You will likely pay higher rates.
This provision keeps your new car covered for a few days until you can officially add it to your policy. This gives you time to call your insurance company and tell them to remove your old vehicle from your policy, add the new one, or both.
In some cases, you can even drive off the lot before the new car is added to the policy, but it is a still good idea for new drivers to always have insurance before purchasing a car. If you are a new driver, here are some tips for securing your first policy:
This will be helpful when getting insurance quotes because one car might be cheaper insurance-wise. When it comes to insurance rates, no car will have the same price. Keep in mind that a more expensive car will cost more to insure.
If your car has indeed depreciated in value, you would be forced to pay for the rest of the damages out of pocket in the event of an accident. However, you can buy supplementary insurance to combat this.
If you own your new car, another good option is new car replacement insurance, which will pay for the cost of a brand new car of the same make and model. Just be aware that this coverage will cost quite a bit extra.
Wondering why you need auto insurance Driving without insurance affects everyone around you. According to state legislatures, you pose a huge threat to drivers and pedestrians when you do not follow the law and carry car insurance. 59ce067264
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