Car Insurance Questions

When buying automobile insurance there are certain things you should know in order to get the kind of insurance you want to have. We will try to cover some of the questions here and their answers.

If you have been in a traffic accident and convicted and you could not show that you were financially responsible, or if a Judge ordered that you have an SR22, and you do not know what an SR22 is then here is the answer to your question. As SR22 is not insurance but a form that is proof that you have a certain type of insurance. The insurance company fills out the form on your behalf to state that you have the necessary insurance and it is in effect, which varies from state to state, to the Department of Motor Vehicles. That necessary insurance is most often auto liability insurance.

If your car has been damaged totally by an accident, a theft, vandalism or harsh weather than if you have GAP insurance the company will often pay the cash value of the car or in some instances it would be less than the cash value. GAP insurance protects your automobile loan or lease by paying the difference between the balance you hold currently on your automobile loan or lease and the cash value of the automobile. It is called GAP insurance because it is the amount of your deductible and the loss the balance of which you may have to pay is called the “gap.”

The question is: what is subrogation? If you have been in accident that you did not cause, and you made a claim for damages or injury, and your insurance company compensated you for it, they now have the right to get their money back. Your insurance company can now file a subrogation claim against the other insurance company for the money paid to you plus any expenses. Any amount that they receive has to be divided between you and the insurance company to cover any deductible that you may have been responsible for.

You are ready to buy a car for your sixteen year old and want to know what car is cheapest to insure. Keep in mind the more expensive the car the more the insurance will cost you. Here is a list of cars that are least expensive to insure

• Chrysler PT Cruiser four door wagon
• GMC Safari SLE AWD three door minivan
• Dodge Caravan SE four door minivan
• Saturn ION 1 four door sedan
• Pontiac Sunfire two door coupe
• Jeep Liberty Sport four wheel drive four door SUV
• Saturn L 300 1 four door sedan
• Volvo S40 four door sedan
• Saab 38600 Linear 2 3t four door sport wagon

However, it is suggested that you do not get a teenager an SUV. When a teen is confronted with a tight situation they have a tendency to over compensate and cause the SUV to turn over.