Many of us in Maryland have so many questions on auto insurance. Here are some of the frequently asked questions that can help you have a better understanding about auto insurance.
Q: If someone borrows my car and crashes it, does my insurance apply, or does theirs?
A: Generally speaking, the liability follows the car, so your insurance would apply, as it is your car. The liability insurance of the driver often pays the additional amount if the costs payable are above your policy limits.
Q: If a child goes to college with mom or dad’s car, are they covered under the parents’ personal auto policy?
A: This can vary from company to company. Check with the insurance provider and make sure that the child is listed as an additional driver. Do this before the child goes to college, and it will avoid unnecessary disputes later on.
Q: Do I need ‘gap’ insurance?
A: If your vehicle is on finance, and its value is now less than the amount you owe, then yes you need gap insurance. If you owe less than its value, then no, you do not need gap insurance.
Q: My teenager will soon be of driving age, how can I cover them without paying a large premium?
A: As young drivers pose greater risks, this will be hard to do. If you only have one, expensive car on the policy, it will be expensive to insure the teenager. Consider buying them a cheaper vehicle that will make it cheaper for them to be insured on.
Q: I have just bought a new vehicle, but have not yet told my insurance company. Am I still insured?
You should always notify your insurance company of any changes of vehicle or new vehicles you purchase. Sometimes the new vehicle will be covered straight away, but there are often stipulations regarding the type of vehicle, and an amount of lapse time can also apply.
Q: Does my auto insurance cover me for the rental car I will be using when I am on vacation?
A: Many auto insurance companies will include rental car coverage within your policy, but again, restrictions can apply, and to be on the safe side you should always check details before you go on your vacation. If you unsure, phone the company direct and get an answer over the telephone. With issues such as this one it is better to be safe than sorry.