FAQ's - 4 Car Insurance - Find insurance 4 your car!

FAQ's - Frequently Asked Questions

What is auto insurance?
Drivers purchase auto insurance for vehicles such as trucks or cars to protect them from losses that may occur when they are driving them.

Am I required to purchase auto insurance if I own a vehicle?
If you drive a vehicle in the USA or Canada, you are legally required to purchase auto insurance.

What is the main reason for requiring auto insurance?
Auto insurance provides drivers with peace of mind, as well as financial security if they are ever involved in an accident.

What does actual cash value mean?
Because there are so many used vehicles on the road, every auto policy is written for actual cash value or ACV. This means that the values of your auto settlement are determined by similar vehicles currently on the market. ACV is based on the cost to replace your vehicle with similar new one, minus the depreciation based on the age of your vehicle.

Will other people be covered if they drive my car?
Any person who has permission to drive your car is generally covered. This is why you should list any individuals who regularly drive your vehicle on your policy.

How do companies determine auto insurance rates?
They compile statistical history to determine the current rates for auto insurance. The rates are based on the amount of money necessary to pay for all company business expenses and claims.

Can my insurance company cancel my auto policy?
Yes, if you fail to pay your premium or if your license has been revoked or suspended during the term of the policy, your company can cancel your policy.

What happens if I am involved in an accident in another state?
Your insurance provider will usually be able to handle your claim in the state where the accident occurred. If it is not convenient to have your vehicle inspected in that state, your insurance provider can arrange for a local inspection.

Will my auto insurance cover my relatives who have international driver’s permits?
Your insurance policy will cover them if you choose to add them to your auto insurance policy when they visit and drive your car.

What is a declarations page?
A declarations page is a report issued by your insurance provider that indicates your coverage, limits, drivers insured, cost of coverage and vehicles covered.

What is the main reason for requiring auto insurance?
Auto insurance provides drivers with peace of mind, as well as financial security if they are ever involved in an accident.

Will I receive a refund if my policy is cancelled?
You will be entitled to a refund of the unused portion of your premium if your auto insurance policy is cancelled before expiration of the time you have paid premiums.

Which household members don’t need to be included on my policy?
You don’t need to list any roommates who are not family members and don’t drive your vehicle or any non-family household residents who don’t drive your vehicle.