SOME COMMONLY RAISED QUESTIONS

There are many doubts regarding auto insurance among various people. Here under are some frequently asked auto insurance questions and answers to them.
Will my clean driving record lower my insurance premium?

The premium which is paid is proves that one has a clean driving record for about three to five years, which depends on the insurance company. Average shows that drivers who have clean driving record face fewer accidents than drivers who lack experience and they also face more accidents comparatively. The second question which comes into mind is if the drivers in the household have bad driving record, it is harder to get his insurance? Most of the companies do not insure a person if one stays with a relative, who has a bad driving record. It is a bit tough to get a preferred rate for a person with bad driving record because he or she will called an insured after getting insured under the policy.

In case of claims, does one get the total worth of the car?

Most of the insurance companies pay the actual cash value of the car, which is totalled in an accident. The market value of the auto just before the accident is equal to the actual cash value. The insurers shall use just and equitable ways to find out the value of the car. If one has any doubt about it the insured person can ask him the method used for determining the value of the car.
If the worth of my car determined by the insurance company is lower than the loan taken?

Many times it happens that the balance on the car loan is more than the value of the car. There are several factors behind this which are as follows: The amount of the loan can be increased if the interest rate has increased. The second reason is they may not have deducted end the rebate on the purchase price. The value of the car may be reduced due to the poor maintenance of the car. The insurance company pays on the basis of actual cash value of the car and not the amount of the loan taken. Special type of insurance can be done in some of the states which are called Guaranteed Auto Protection, when a car is purchased.  The difference between the actual cash value and the balance of the loan is termed as Guaranteed Auto Protection. So to conclude these were the most common and frequently asked questions by any individual.

Article Tags: Actual Cash Value, Driving Record, Insurance Company, Actual Cash, Cash Value

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