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Do you have car insurance questions about rates, rentals, and how much coverage you need? We have answers!
There’s no time like the present. Let’s jump right into it! Here are answers to the 10 most asked car insurance questions.
How Much Auto Insurance Do I Need?
Your state sets legal requirements for car insurance minimums. This includes liability for bodily injury and property damage. This coverage kicks in when you’re found legally responsible for an accident.
You take on higher financial risks when you lower your liability limits. This means you pay for damages with your own money when you don’t have enough coverage.
Take a look at these stats and think about why you should consider protection above state minimums:
- A low property damage limit probably won’t pay for another driver’s totaled, new vehicle if you’re at fault because the average new vehicle costs $36,843.
- The National Highway Traffic Safety Administration (NHTSA) estimates that the average auto fatality costs an average of $1.4 million over a lifetime.
- The NHTSA says a critical injury from a car accident costs an average of $1 million over a lifetime.
- Prices for medical services have increased 12% since 2012.
Think about having enough insurance to cover your property if you’re sued for causing an accident. Your personal financial situation will determine if you’re able to do this.
We have more to say about this: “Why You Shouldn’t Lower Your Car Insurance Liability Limits.”
Why Do My Auto Rates Go Up?
Auto rates mainly go up because of:
- Catastrophic weather
- The increasing number of drivers on the road
- Distracted driving
- The number of uninsured drivers in your area
How Do I Lower My Rates?
Though you can’t control every factor, the following steps could help you lower your rates:
- Avoid speeding tickets.
- Ask for a higher deductible, but keep in mind that this will increases the amount you pay when you file a claim.
- See how much it costs to insure your next vehicle before you buy it.
- Ask about discounts.
We have a lot more to say about this topic: “Why Your Car Insurance Rates Go Up – and What You Can Do About It.”
What Discounts Do You Have?
Pekin Insurance offers auto discounts for:
- Insuring multiple cars.
- Bundling auto and home coverage.
- Making recurring EFT payments.
- Paying your premium on an annual or semi-annual basis.
- Being a good student (under age 25 with a GPA of 3.0 or better).
Go here to learn all about our auto discounts.
Can I Use My Personal Car for a Business?
Yes, but you should talk to your insurance agent first.
A straightforward personal auto policy won’t cover your vehicle if it’s used for business purposes like:
- Ridesharing for Uber and Lyft
- Plowing snow
- Hauling heavy tools or equipment
- Towing trailers
- Delivering goods or services
- Towing trailers
You might need commercial auto insurance.
What Is Comprehensive Coverage?
Contrary to popular belief, comprehensive coverage doesn’t pay for every kind of damage under the sun.
Instead, it offers protection against things you can’t control, such as:
- Falling objects like tree limbs
- Glass damage
- Animal-related accidents
Should I Buy Rental Vehicle Coverage?
Let’s say you’re on vacation, and the rental car agent asks you to buy coverage. It’s kind of expensive. Should you say "yes" to the purchase?
You’ll be relieved to know that most insurance policies transfer to rental cars.
If you have liability-only coverage for your own car, you have liability-only coverage for the vehicle you rent. When you choose your own insurance instead of the rental car coverage, you file a claim with your insurance company when the rental vehicle is damaged under your care.
Talk to your insurance agent if you aren’t sure about your coverage.
Need more info? Turn to, “Know These 6 Rental Car Rules Before You Drive Away.”
How Do I File a Claim?
Do you have auto coverage through Pekin Insurance? Your first step is to call our P&C Claim Department at 888-735-4611.
Dealing with vehicle damage is the last thing on your to-do list, but you could qualify for FlashFix. It’s a web app designed for low-impact, low-damage claims such as minor fender benders.
FlashFix is free to use for all Pekin Insurance auto policyholders, and it can take days off the normal auto claim process.
Is My New Vehicle Covered if I Can’t Contact My Agent?
It’s a Saturday, and you’re at a car dealership buying an SUV.
You call your insurance agent before you drive your new ride home. The office is closed.
Before you panic, you should know that most insurance companies extend coverage to newly purchased vehicles for up to four days. In this situation, you should call back on Monday.
Does My Policy Cover My Kids While They’re Away at College and Home for the Summer?
Students in your household are insured when they’re away at college and when they come home. They’re also covered for their own personal liability when they have permission to drive someone else’s vehicle.
We welcome every car insurance question you have! Your local Pekin Insurance agent has more answers than you can dream of.