To drive on American roads, you need to gather information concerning your auto insurance. The more knowledge you have, the more you are likely to save and avoid denials.

Here are some questions and answers you may find helpful.

What happens to my auto insurance if I replace my vehicle?

Notify your insurer immediately within a set time. Most policies provide automatic 30 days for a vehicle that replaces another. If it requires additional coverage, your insurer will do that.

Does my auto insurance cover my car outside America?

Most policies cover in other states, U.S territories and Canada but exclude Mexico. If you want to drive your car in Mexico, you need a separate coverage. However, if you want to travel, check out your state coverage before embarking on that journey.

You need to cross-check the amount of coverage you need to carry in the state where you wish to travel to. If your coverage is lower than what is required, get your insurance company to raise your coverage.

What is subrogation?

This is the right the insurance company has to recover from a third party the amount of damages it paid to you in claims. If another driver is at fault in an accident involving you and you have a collision claim, your insurer will require the other driver to reimburse the money they paid to you in claim.

In such situation, you should cooperate with your insurance company and avoid anything that will jeopardize the company’s right to get the refund. For this reason, you are advised not to enter into agreement with the other driver as regards the payment of your deductible. Allow your agent or insurer to handle every accident case without interfering. Continue reading »