There are many questions to ask when it comes to purchasing a car insurance policy. The Accel Group in Eastern Iowa wants to help you make an informed insurance purchase with the right amount of coverage at a great price. Below we provide answers to questions frequently asked by individuals shopping for insurance. For additional questions, contact an Accel Group agent today.
Frequently Asked Auto Insurance Questions
What is the difference between comprehensive and collision coverage?
Collision coverage, the most standard form of car insurance, protects drivers from accidents with other vehicles and objects. Most car crashes and auto accidents fall under this kind of insurance policy. Collision insurance covers the cost of repairs or replacements to only your own car. To take care of the damages of the other driver’s vehicles if it is your fault, liability insurance is needed.
On the other hand, comprehensive car insurance coverage, provides financial protection in the case of fire, theft, flooding, and other physical damages that may cause damage to your car, but not as a result of a collision.
Do I need more than Iowa minimum coverage?
In Iowa, drivers have the choice to not buy car insurance. However, uninsured drivers get into an accident they are required by law to show proof of financial responsibility immediately. In this case, financial responsibility is best represented by auto insurance.
In the state of Iowa, if drivers do not show proof of financial responsibility when required, the DOT will suspend driving and registration privileges.
Do I have to report all accidents to my insurance company?
No. It is up to the policyholder to choose whether or not to pay out of pocket or file a claim in the case of an accident.
Will my rates increase if I am in an accident and file a claim?
Depending on the insurance provider and the type of claim, an accident may or may not cause insurance rates to increase.
To avoid rate increases or unpleasant financial surprises following an accident, research and learn about your insurance policies and industry practices prior to working with an insurance company or filing a claim.
At The Accel Group, we work to keep your rates as low as possible. A variety of factors will determine whether or not rates increase following an accident.
Can I cancel or change my auto insurance policy at anytime?
Most auto insurance companies will allow you the right to cancel your policy at any time with proper notice. If you have paid a year-long premium you should be refunded for the remaining months. However, depending on the insurance company, you could be charged a small fee.
Does my auto insurance cover hit and run accidents?
A hit and run accident, where a driver who caused the accident intentionally leaves the scene of the accident, is typically covered under an uninsured motorist policy.
Uninsured motorist coverage protects drivers and their passengers in the case of a collision with an uninsured driver or in a hit and run accident.
In the case of a hit and run accident, file a police report immediately. If you are present at the time of the accident, collect as much information about the car and driver as possible. If the hit and run takes place in a parking lot or another area while your car is unattended, search for witnesses or surveillance cameras. Always take photos and detailed notes about the accident.
If a tree or pole falls on my car am I covered?
Comprehensive auto coverage is best to protect your assets in this type of situation.
If the fallen tree and the vehicle are owned by the insurance policyholder, comprehensive coverage as part of an auto insurance policy would help pay for repairs or replacement up to the car’s cash value at the time of the loss. Homeowners insurance will not likely cover damages to the car in this situation.
If a neighbor owns the pole or tree, comprehensive auto insurance would cover damages, unless negligence by the owner can be made.
How can I lower my car insurance rates?
There are a variety of ways to decrease the amount you pay for car insurance. The most important and best way to lower insurance rates is to choose a higher deductible. By opting to pay a higher deductible if you are in an accident, you may significantly lower your car insurance premiums.
Other factors that influence car insurance rates include:
- Type of Car Insured
- Credit Score
- Miles Driven/Year
- City/Area of Residence
- Marital Status
The Accel Group works with a number of insurance providers to ensure you receive the best coverage for the best price. Contact an Accel Group agent today to learn more about how you can decrease your car insurance rates in Eastern Iowa.
What is no fault coverage?
No fault insurance is a type of car insurance in which an insurance provider covers damages in an accident, regardless of who’s at fault. No fault insurance eliminates the need for a driver to go after another party’s insurance company in court to collect reimbursement for damages caused by the other person.
Iowa law does not require no fault insurance coverage.
What happens if an uninsured motorist hits me?
A recent study by the Insurance Research Council found that in 2009, one in seven drivers was uninsured. To protect yourself in the case of an accident with the estimated 14% of the nation’s drivers that are uninsured, consider uninsured motorist coverage. Uninsured motorist coverage covers drivers and their passengers in the case of a collision with an uninsured driver or in a hit and run accident.
How do I know what type of insurance coverage is best for me?