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Car Insurance Terms Explained

Car Insurance Terms Explained

Planning on buying car insurance but you’re not sure about all of the terms that accompany a car insurance policy? You’re not alone! Thankfully, in this article we will break down some of the most common car insurance terms that you might find when purchasing a new car insurance policy or researching car insurance online.

Car Insurance Terms Explained

  • Collision: If you’re in an automobile accident, regardless of who is at fault, collision insurance provides protection to replace or repair your vehicle, subject to a deductible.

  • Comprehensive: In the event of hail damage or a tree limb falling on your car (risks not involving an automobile collision), this coverage insures you. Comprehensive coverage pays to repair your vehicle, subject to a separate deductible.

  • Personal injury protection: This type of insurance coverage is for medical and other expenses resulting from an automobile accident for the people specified in the policy, regardless of who is at fault in the accident.

  • Medical payments: This feature provides a limited amount of coverage for you and your passengers’ medical expenses as a result of an accident. The coverage pays regardless of who is at fault.

  • Bodily injury and property damage liability coverage: The insurer agrees to pay damages if you injure someone or his property in an auto accident.

  • Uninsured and underinsured motorists liability coverage: If you’re in an accident with another driver who doesn’t carry any or enough liability coverage, uninsured or underinsured motorists liability coverage allows you to collect damages that you personally experience from the accident.

Get Car Insurance Here

For affordable Central Oregon Car Insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online.

 

Car Insurance Cancelled vs. Non-renewal

Car Insurance Cancelled vs. Non-renewal

If your insurance company doesn’t want to insure you any longer, there are two different ways they can legally go about extricating themselves from the policy. Cancellation is the most extreme of the two. In the first few months of a policy, insurance companies can cancel the policy for any reason, although this is uncommon.

The most common reasons an insurance carrier will cancel a policy include:

  • Late payment
  • The loss of your license (because of a DUI or other offense)
  • Or a determination that you provided inaccurate personal information when the policy was created

Cancellation

However, because cancellation is a strike against your insurance record, it’s important to do everything you can to avoid it. Making payments on time is crucial, as is avoiding driving under the influence and being as forthright as possible when providing information to prospective insurers. It might be tempting to lie about recent traffic offenses or tickets, but in the long run, this will harm the health of your credit and driving record.

When your insurer cancels your policy, it stays on your insurance record for five years. However, if a driver accumulates three cancellations in one year, it will be almost impossible to find another carrier willing to take you on as you are now a “high-risk” insured. You’d have to go to a high-risk carrier and pay up to five times the normal car insurance rates you once paid at a standard insurance carrier.

Non-renewal

Non-renewal is a different story, and doesn’t carry the severe consequences that cancellation does. When your car insurance policy has run its course, your insurer may decide that they no longer want to insure you. Generally, an insurer will issue a non-renewal notice if:

  • You have filed multiple claims in a short period of time
  • Your credit rating has declined sharply, and your current insurer sees you as a liability
  • The carrier is restructuring its insurance lines of business or pulling out of a certain line and is discontinuing your policy through no fault of your own

While you searching for a new policy, it’s not nearly as difficult to bounce back from a non-renewal as it’s a cancellation.

When it comes to non-renewals and cancellations, many states have different laws on how and when an insurance company can non-renew you or cancel your insurance policy. There are protections in place, so insurance companies do not just leave insureds high and dry. Below is an example of the different ranges of non-renewal and cancellation required notice period.

Get Central Oregon Car Insurance Here

For affordable Central Oregon Car Insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online. 

Is Cheap Car Insurance Really Worth It?

Is Cheap Car Insurance Really Worth It?

Cheap-car-insurance

Since the recent economic recession, more people than ever before are interested in saving money on Central Oregon Car Insurance and the sad thing is that with their desire to save money, the average person is actually getting less car insurance coverage and putting their financial future in jeopardy by driving around with car insurance that does not provide them with enough financial protection.

If you’re thinking about choosing cheap car insurance, here are the top consequences that come from cheap car insurance, so you don’t make the mistake of getting coverage that won’t cover all your financial needs, if you are involved in a car accident.

Lack of Liability Insurance to Cover All of Your Assets

In 2013, one most common mistakes that driver’s make when buying Central Oregon car insurance is choosing liability insurance with limits that will pay $15,000 per individual for their bodily injuries, $30,000 per individual, per accident, and then $5,000 if there are any property damages that are incurred in the car accident.

The reality with choosing low liability insurance limits is that with any car accident, it’s very easy for the average driver to incur $5,000 in damages to their vehicle, or incur $5,000 in damages from bodily injuries very quickly, and once someone uses up their $5,000 in liability insurance, they will be responsible for paying the remaining balance that’s due for hospital bills, vehicle repairs and any additional pain and suffering that resulted from the car accident.

Really Bad Customer Service

One sad hallmark of cheap car insurance is that many companies that offer cheap car insurance policies typically have very poor to nonexistent customer service and, there’s nothing worse than not being able to get your questions answered or speak to a live person when you need to file your car insurance claim.

Lack of Protection for Passengers

Last of all, but most important, many people who are interested in saving money on Central Oregon Car Insurance typically find out too late that cheap car insurance policies don’t provide them with enough coverage for the passengers in their vehicles should they be involved in a car accident and it’s important for every driver to verify how much car insurance they really have before they step out the door, especially if they are driving with passengers in your vehicle like small children.

To learn more about what to look out for when driving with cheap car insurance, or to get an affordable insurance quote, contact the Farnsworth agency today by calling us at 541-318-8835.

Car Insurance Questions – Do You Need A Title To Get Car Insurance?

Car Insurance Questions – Do You Need A Title To Get Car Insurance?

central oregon car insurance

One of the most common car insurance questions is “do I have to have a title to get car insurance for a vehicle?”

The answer to this questions is no; you don’t need to show the title, for a vehicle, in order to get car insurance for it.

This is especially true for vehicle owners who have financed their vehicles since the titles for their cars or trucks are usually in the hands of their leasing companies until they pay off their vehicles.

Insurable Interest

In order to obtain insurance for a vehicle, the owner or driver is required to show that they have an “insurable interest” in the car or truck, which is requiring them to obtain car insurance in order for them to drive legally on the roads of Oregon or the state that they live.

What does insurable interest mean?

This simple term means that the driver of the vehicle will suffer some economic loss if the vehicle they are driving and it’s damaged in some way.

Someone who has an insurable interest in the vehicle they are leasing is basically a co-signer on the vehicle since the leasing company is the primary owner.

What’s required to Show Insurable Interest?

To show that they have an insurable interest in the vehicle, the owner of the vehicle must show proof that they purchased the vehicle including a title or even a bill of sale.

Thanks to the internet it’s easier than ever before for any driver to find affordable car insurance simply by doing an online search or by contacting their Oregon insurance agent.

To have your common car insurance questions answered or to get an Oregon Car Insurance quote, contact the Farnsworth Agency today by calling us at (541) 318-8835.

Central Oregon Car Insurance – Find Out What Car Insurance Coverage Your Really Need

Central Oregon Car Insurance – Find Out What Car Insurance Coverage Your Really Need

Everyone who is interested in buying the most affordable Central Oregon Car Insurance will at one time or another come across confusing car insurance language that leaves them literally scratching their heads, wondering what the insurance industry terms mean.

To help out Bend Oregon drivers and Oregon car insurance consumers in Central Oregon and across the state, here are the three most important parts of any insurance policy so that any Central Oregon driver who is interested in starting a car insurance premium in Bend, Redmond, Prineville or anywhere else in Oregon the opportunity to make a more knowledgeable car insurance decision.

Comprehensive Insurance

In the car insurance world the word comprehensive can have a variety of meanings but regardless of the meaning this form of insurance protection will protect an insured drivers vehicle if they were to get into a collision or accident with another vehicle.

Comprehensive insurance coverage does not pay out compensation to the driver of the other vehicle if it’s damaged and it does not cover any personal belongings in the insured drivers vehicle if they are damaged.

Bodily Injury Insurance Coverage

One of the most important forms of insurance to have, bodily injury will protect a driver if are driving and get into an accident that causes injuries to their passengers; what’s even better is that this form of insurance will also protect a driver if they are found to not be at fault.

Property Damage Coverage

Drivers in Bend Oregon who want affordable Central Oregon Car Insurance or the best rates for driving anywhere else in Oregon should always have property damage added to their insurance policies because, this coverage will pay for damage to their vehicles especially if the vehicle owner gets into an accident that causes damage to another vehicle or damage to a property.

To learn more about what coverage you should have on your car insurance policy or to get a free Bend Oregon car insurance quote, contact the experienced team of insurance agents at the Tye Farnsworth Allstate Insurance Agency today by calling (541) 318-8835.

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