Car insurance has often confused a few people and is not that easy to understand as it looks. Most people have been misinformed about car insurance and policies. When it comes to insurance, a proper research should be done; information should be acquired by the agents in order to make the best decision depending on their individual circumstances. We will try to answer all your questions related to car insurance and clarify all the misunderstanding to avoid any mishap.
Some common questions we usually come around related to car insurance are
Q. How much coverage should I get when getting a car insurance?
A. Well, the coverage totally depends upon the customer and it is solely your decision. It involves factors as how much you can pay for the premium? Or how much do you drive usually.
Q. Are the insurance providers regulated?
A. Yes, they are, depending upon the state and insurance company. These regulations are then counter checked by state regulators whose job is to determine if the insurance company is not charging higher than the usual rates.
Q. What is Risk Assessment?
A. It is the probability of getting into an accident. This is calculated by driving and financial history of the policy holder. Insurance company does the risk assessment before providing the policy; the premiums are also decided on the basis of Risk assessment.
Q. What do we mean by deductibles?
A. The amount policy holders pay in case of an accident, so that insurance company can cover the rest of the cost. It directly influences the premium cost, the larger the deductible, the lower the premium.
Q. Do the insurance companies deny the claim?
A. Sometimes, they do. The reason is they receive a large numbers of fraudulent cases every now and then, so you have to be sure about the claim and should have a proof.
Q. Does not having a car insurance costs me more?
A. Yes, it does in the long run. Rates will go up if you might end up not having it. You have to pay all expenses by yourself in case of any mishap or an accident.

Q. If I have a cheaper car, does it mean I have to pay fewer premiums?
A. No, that’s just a misunderstanding, the insurance rates depends upon the cost to fix he car in case of an accident that causes damage to the vehicle, not on the current market value of the car. So usually, for cheaper a car which has expensive parts, auto insurance rates Texas go high.
Q. Can I insure a rented car?
A. No, you can’t. The car insurance policy is only given in the case of ownership. Rental cars are not the responsibility of the insurance providing company. However, the person who owns the rented car can have the insurance.
Q. Does sports car’s owner have to pay higher premium?
A. There is some truth behind it, because sports cars are likely to go high in the speed which increases the risk of an accident as compared to the conventional car. Even if the sports car’s owner doesn’t speed, the premium would be a little more.
We have tried to clarify all your misunderstandings, if you still have a confusion regarding your car insurance for cheap , you can acquire information from the agent.