Almost every state has laws stating that people have auto insurance, but the actual regulations regarding auto insurance vary from state to state - so the type of coverage that you require depends on the state in which you live in.

Even if there are no laws, it is highly recommended that you have some form of cover; otherwise you may end up paying out huge amounts of money in the event of an accident, or even losing your home, in a worst-case scenario.


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Fender Benders and the Cost of Your USA Car Insurance

We have all heard of fender benders and unless we have had one or know someone who has, we think of these as tiny little situations where two cars meet just hard enough so that a little work has to be done. Many people will tell you that you should pay out of pocket so that your insurance won't go up. And, of course, even the smallest claim could send your insurance premiums upwards even if the fender bender was not your fault. So, what's the right thing to do

There is an abundance of misinformation available that will try to convince you that you should pay out of pocket for fender benders. At the scene of the accident, don't be so quick to cut the other person a check; likewise, don't accept any money from the other person as well. You may be looking at a much higher price to get the car fixed than either of you thought about.

Car accidents are expensive and a major inconvenience. One issue is that when you choose the lowest possible deductible your long term costs will be about the same because you will be paying higher premiums each month. You should consider raising your deductibles to lower the overall cost of you car insurance;

In this situation, a collision will be a little more expensive, but you're probably not going to experience enough accidents to justify the forgone savings. If you're a safe and responsible driver, save on your overall premium, not on the out-of-pocket costs in an accident. In addition, your insurance premiums will probably still stay the same since you are paying for some things out o your own pocket.

Always have a pen and paper readily available next to your proof of insurance in your glove box. It is important to collect the names and addresses of all drivers, passengers, witnesses, and law enforcement officials involved; in addition to license plate numbers, the make and model of each car, driver's license numbers, insurance information, and as much scenario detail as possible in USA. The more information you have, the stronger your case will be if your insurance company has to negotiate with the other person's or if the case goes to court;

There are two points of wisdom that strongly support any resolution that most people overlook: 1.) Never admit fault, and 2.) Have a disposable camera handy to take undisputable images of the scene. In any type of auto accident, everything happens in a flash and "hindsight is 20-20".

If a fender bender has bruised your driving record and you are suffering from what seems to be unreasonable car insurance premiums, shop around for a new car insurance policy. There are auto insurance companies that specialize in insuring high risk drivers with reasonable rates. To find them you must shop around and compare multiple quotes from multiple companies. Talk to an insurance agent you know or one that a friend or family member knows to see if .they can keep your rates reasonable. Most of the time - especially if the fender bender is not proven to be your fault, your insurance rates should not go up at all.

Car Insurance Q & A

Question: If someone borrows my car and crashes it, does my insurance apply, or does theirs?
Answer: Generally speaking, the liability follows the car, so your insurance would apply, as it is your car. The liability insurance of the driver often pays the additional amount if the costs payable are above your policy limits.

Question: If a child goes to college with mom or dad’s car, are they covered under the parents’ personal auto policy?
Answer: This can vary from company to company. Check with the insurance provider and make sure that the child is listed as an additional driver. Do this before the child goes to college, and it will avoid unnecessary disputes later on.

Question: Do I need ‘gap’ insurance?
Answer: If your vehicle is on finance, and its value is now less than the amount you owe, then yes you need gap insurance. If you owe less than its value, then no, you do not need gap insurance.