Automobile Insurance - Frequently Asked Questions

Will an accident cause my insurance premium to go up?

This depends on whether you are found at fault for the accident. If you were found at fault and the damages or bodily injury are in excess of the threshold ($400 - $500 - varies from company to company)  yes, you will see a surcharge added to your policy upon policy renewal.

What is the meaning of Accident - Forgiveness ?

Many automobile insurance companies now offer their policy holders an added benefit in the form of Accident - Forgiveness. Meaning that the policyholder's insurance premium will not increase, nor will there be a surcharge to the policy in the event of at at-fault accident. The policyholder must meet certain qualifications, such as, being accident free for a predetermined amount of time (normally three years) and has been insured for the specified amount of time with the same automobile insurance company.

When is an insured considered an adult?

An insured is considered an adult when the policyholder reaches his or her 25th birthday. At this point, the insured will see a considerable decrease in his or her auto premiums.

Can an insurance company cancel my auto insurance for filing too many claims?

The insurance company cannot cancel your auto insurance for filing too many claims. Although, you can be considered a high risk. At this point, the company will place the policyholder into a high risk company. This type of insurance is referred to as sub-standard. Sub-standard automobile insurance is made available for those people who are regarded as a high risk. Among those are ones with excessive at fault accidents, excessive moving violations and or those with driving under the influence (DUI) or driving while intoxicated (DWI) violations.

Note: Those found guilty of DUI or DWI violations are required to file an SR-22 form. The purpose of the SR-22 is to provide the Motor Vehicle Department with proof of insurability meeting that states requirements.

What should I do in case of an accident?

• First, never move the vehicle from the scene of the accident. Immediately call the local police or sheriff's department. This allows the responding law officer to better evaluate the cause of the accident.
• If you should happen to have a camera, it is a good idea to take as many pictures of the vehicles involved and damages to the vehicle(s) involved.
• Make sure that you ask for the names, addresses, phone number(s) and the name of the insurance company of any driver involved in the accident.
• Also contact your automobile insurance providers claims department with the details of the accident and the names of all parties involved, including each persons insurance carrier. It is a good idea to do this regardless of who was at fault in the accident.

How do I file a claim?

All insurance companies offer a toll-free clams hotline, 24 hours a day, seven days a week. Your claims toll-free number can be found on your proof of insurance card. You will be greeted by a claims customer support representative(CSR). He or she will gather your information regarding the accident. This process will usually take approximately twenty minutes. The CSR will then assign your claim to a claims adjuster in your area. Normally the claims adjuster will contact you  the same day or within twenty-four to forty-eight hours to make arrangements to meet with you and evaluate the loss.

I had an accident, how do I get a rental car?

If you were at fault for the accident, you will need to have purchased the rental car option on your automobile policy in order to be eligible to receive a rental car. Otherwise, if the accident is the fault of the other person involved, their insurance company will provide you with a rental car.

How can a senior citizen qualify for a discount on auto insurance?

Most all automobile insurance companies offer a discount (normally 10%) if the policyholder has taken and passed a defensive-driver safety course. The course can be taken at a local drivers license department or individuals can take a Defensive Driver Safety course online at AARP. Not available in all states.