For some unseen event, I was involved in a car accident last week. It was my first ever car accident in my entire life. What’s even worse is that it was a hit and run. It was totally not my fault. I have comprehensive coverage on that vehicle. However, I don’t have collision. Will my GAP coverage be able to pay for the damage on my vehicle? I am from Sioux Falls, South Dakota.

Val

Sioux Falls, SD

This is really a very unfortunate event in your life and I’m really sorry to hear what had happened to you.

I am assuming that the reason why you’re asking that is because your primary auto insurance did not cover for the damages incurred on your vehicle. If that is the case with you, then you GAP insurance would not be able to pay for the damages also.

For a GAP auto insurance to cover you, your primary auto insurance company should pay for the actual cash value (ACV) of your car first. However, since you’ve already mentioned you don’t have collision coverage then, it’s only expected that you insurer would not pay for your claims. Because, this kind of accident falls under the collision coverage.

For more information about auto insurance claims, feel free to ask your auto insurance agent in Sioux Falls, South Dakota.

Do the cheapest car insurance rates differ by state?

Emily

Yes, they absolutely do.

Car insurance follows the same guidelines as does cost of living, as anywhere you move you will have different expenses. One place you might be able to afford comprehensive and collision coverage, and in another you might have to just stick with your basic liability as required by law. Some states are cheaper than others when it comes to the cheapest car insurance rates. Although car insurance rates do change in the same way cost of living does, though, that doesn’t mean that high cost of living corresponds to high car insurance rates. Living in L.A., for example, costs a lot, but the car insurance premiums aren’t so bad.

And while you can get the amount paid by the average car insurance policy holder in each state, you should also keep in mind that in every state there are significant highs and lows which can throw off the balance. Someone living in a rural area and not needing to driver very much may pay way less than the state average, while a dweller in a sprawled out urban area may pay much more, so that it all evens out.

Car insurance rates are always going up. For the entire country of the U.S., the average car insurance rate per year is about $2,500. That’s almost seven percent more than it was last year, and was gotten from a random sample of car insurance quotes.

On the subject of increases, there are certain sates that have more than others. Louisiana car insurance rates have gone up by 22%, probably because of all of the Katrina car insurance claims. State like South Carolina and Nevada are also seeing bigger rising rates. New Hampshire does the best with a decrease of almost fourteen percent, with North Carolina and Rhode Island close with it.

If you want to know who has to pay the most for car insurance, it’s the New Yorkers. This is the only state that you have to pay more than three thousand a year on average, although New Jersey is close. I would say it’s because of the billions of dollars gained by fraud in the state every year, about 70% of which is from car insurance fraud.

Cheers,

Fashun Guadarrama.

• Make sure you maintain a clean driving record. By driving safely and responsibly, you can keep traffic violations and accidents to a minimum, thus helping you maintain cheap car insurance.
• If you are still in school and under 25 years of age, you may be qualified for a Good Student Discount on your car insurance premiums. Ask your local insurance agent if they support such programs.
• If you are 55 years of age, make sure you speak to your insurance agent about special driver refresher course to avoid high premiums.
• You may also drop your comprehensive and collision coverage if your car is old and in bad shape. Your insurance company may not pay for any repairs to your vehicle in any event.

The Internet provides the best solution for getting several insurance quotes in a short time. You can compare prices offered by these insurance companies. Shop around to know who is offering the best rates in Maryland that suits your needs. By taking extra time, you will be saving a lot!

Goodluck!

-MariCAR

I’m getting a new car and they give you the option to pay extra for side impact air bags. If I do this, will I get cheaper rates on my car insurance premium?

Randy

Probably.

Everything depends on the company, but most car insurance companies will give you safe driver insurance discounts when you add safety features to your car, especially when those features are air bags. You don’t necessarily get more of a discount the more safety features you add, but if you make an effort to diminish the possibilities of extreme damage when or if your car gets into a crash and needs collision coverage, then you are going to get rewarded for it by your company with a car insurance discount.

Some people wonder if we even need side air bags. Every car that comes out on the market is so loaded down with safety features that it’s enough to make people wonder if it makes any sense. Can all of that so called safety really save lives, or is it just a gimmick to sell cars? Accidents still happen right? Right, but less do, and the ones that do cause less damage and injury when there are safety features involved, so this trend will probably continue.

At the beginning of the year, crash tests were performed with cars that did not have side impact air bags and then the same type of car that did, to see what the differences were in the results. It came out that they really do work and can save lives. This is especially important for side impacts, which cause most of the fatalities in accidents because they hit at least one passenger or driver head on. Side impact air bags decreases the possibility of both injury and death, and for that reason car insurance companies are rushing to hand out discounts to anybody with these.

Cheers,

Fashun Guadarrama.