17/03/2025
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Car Insurance Questions and Answers

Here we’ve compiled answers to the most frequently asked auto insurance questions. If your question has not been covered, feel free to contact us!

1. What auto insurance is mandatory by law?

In most states, liability insurance (Liability Insurance) is mandatory. This coverage protects you from the financial consequences of damage to other people or their property. Also, some states may require Personal Injury Protection (PIP) or Collision coverage.

2. What is the difference between “mandatory” and “voluntary” auto insurance?

  • Mandatory auto insurance is the minimum insurance requirements that are governed by state laws. It typically includes third-party liability coverage.
  • Voluntary insurance is additional options such as comprehensive coverage, theft coverage, damage coverage, etc. It’s not required by law, but gives you more protection.

3. Which insurance to choose for a new car?

For a new car, it is recommended that you choose Full Coverage, which includes both liability insurance and coverage for collision and other damages such as theft or damage from the elements. This will provide maximum protection for your vehicle.

4. How can I reduce the cost of auto insurance?

  • Choose a higher deductible (the amount you pay when an insured event occurs).
  • Apply discounts (for example, for safe driving or combined coverage).
  • Compare offers from different insurance companies.
  • Install a security system (such as an alarm system or GPS system).

5. Do I have to notify my insurance company if I sell or change my car?

Yes, you are required to notify your insurance company if you sell or change your vehicle. Depending on the situation, you may be asked to transfer your insurance to the new car or cancel your policy. This will also help you avoid unnecessary payments.

6. What should I do if I am in an accident and the insurance company refuses to pay?

  • Contact a representative from your insurance company and clarify the reasons for the denial.
  • Make sure you have all the necessary documents (police report, photos from the accident scene, witness statements).
  • If the denial was illegal, you can file a complaint with the state insurance agency or go to court.

7. Can I get car insurance for a month?

Yes, some insurance companies offer short-term insurance policies that can be written for anywhere from one day to several months. This can be useful if you only use your car periodically, such as for rent.

8. How do I choose the right insurance policy?

When choosing a policy, it’s important to consider:

  • Your vehicle (its age, model, mileage).
  • Your driving habits (how often you get into accidents, how many years of experience you have).
  • Budget (how much you’re willing to pay for insurance).
  • State minimum requirements and your coverage preferences.