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Frequently Asked Questions About Car Insurance in Philadelphia

There is a saying- it is better to be safe than to be sorry. Most of the times we make huge blunders which cost us heavily because we are not as well informed or updated about certain things that we should be. Matters of money are to be handled very carefully and with prior planning. To avoid major mistakes that might prove to be harmful in the end, one must be very well aware of a few things. Philadelphia DMV strictly recommends every car owners to have car insurance.

Car owners must have car insurance in Philadelphia for their own benefit as well as to abide by the law. Many residents have to plan and apply for car insurance. Before jumping into the decision of choosing a car insurance company, there are a few questions that one must understand. Here is a compilation of a few frequently asked questions regarding car insurances in Philadelphia, which have been answered as well:

Q1. – Largely, there are two kinds of coverage that one can opt for; collision coverage and comprehensive coverage. What is the difference between the two?

Ans. 1- Whenever you will approach a company for auto insurance in Philadelphia, your agent or the insurance company is bound to ask you as to which kind of the two coverage do you want. Since most of us novices are clueless regarding these two terms, here is an elaborate explanation.

•             Collision coverage– This coverage will be provided to you if, and only if you have an accident or collision with another vehicle. If you sign up for this insurance plan then in lieu of the premium given to the bank, when an accident happens the repair work expenses will be funded via the insurance plan. This particular type of coverage will come into play only when the car is damaged due to an accident.

•             Comprehensive coverage – Suppose due to a small spark in the engine your car catches fire or suppose it is subjected to theft! What would you do then? Your comprehensive car insurance in Philadelphia will look into these matters and will provide financial support in such cases.

Tip – Now that you understand fairly the basic difference between the two kinds of coverage, depending on your usage of the car you will have to decide whether to either go for one of the two or opt for both. Usually cars plying on a daily basis have both the comprehensive and collision coverage insurance.

Q2. – Supposedly, I have a few tickets to my name in my driving record. Will this directly influence the amount of premium that I will have to pay?

Ans. 1- This is indeed one of the many pertinent questions, which people ask about a lot. Whenever an application for insurance is submitted after going through the various auto insurance quotes in Philadelphia, the insurance company that you have selected will check with the Philadelphia DMV and will confirm your details and see to it whether they are in order or not. Usually it depends on the insurance company as to how much effect your driving record will have on your premium amount. It is but natural that drivers who have histories of rash driving are likely to encounter many more accidents on the road. Just for this reason, most of the insurance companies increase the premium amount by a certain percentage if there is a history of rash driving in the recent by gone years.

Q3. – Will being a member of the motor club provide me with the services of a rental car in cases of emergency?

Ans. – To understand the need of a rental car service one needs to understand first its necessity. Nothing is planned on the road and it might so happen that you meet with an accident! Your car is badly damaged and it has to be sent to repair the cost of which will be borne by the car insurance in Philadelphia. Now, your one and only car is off to servicing and you know that it will take few days before it can be used again, so what should you do? This is when your rental car services coverage comes into play. If you sign up for this coverage then when the time demands you will get a rental car at your disposal provided by your insurance company until your car comes back from servicing. When you are applying for auto insurance in Philadelphia, if you are a member of the motor club, then it will take care of the services like towing, providing batteries in case there is an emergency but it certainly does not guarantee a rental car at your disposal. Therefore, if you know that you will need a car during the interim period then do sign up for rental car coverage plan.

Q4. – I have not received a full coverage that I think I should have received after a serious accident to my car. Why is that so?

Ans. – This complain has been heard typically by many insurance agents and companies from their customers. When it comes to paying money to the client in case of an accident, what the insurance company does is that they pay to a certain actual value of cash. This value is determined by the market price of the car not at the time that it was bought but at the time just prior to the accident. Now, there are times when one client feels that they have not received a suitable amount, which the damaged car deserves. If anyone feels that the company providing car insurance in Philadelphia is by any chance not paying the due amount, one can always negotiate with them.

Therefore, now that you are armed with the answers to some of the most commonly asked questions; do plan carefully before you deal with any companies of auto insurance in Philadelphia.