Auto Repairs and Insurance Georgia GA

Reader’s Question:

How does my auto insurance company here in Georgia determine the value of my car if it gets totaled? What would happen next?

Stephanie

Atlanta, GA

Well, I hope nobody ever gets in an accident wherein the car gets totaled. That’s not right. Now, if somebody does get in an accident and the car is declared totaled by the auto insurance company in Georgia, it means that the repair cost is actually higher than the actual value of the car. Some auto insurance companies declare a car totaled if the repair cost exceeds eighty percent of the car’s actual price. You might have to check the exact figure with your auto insurance agent.

After your car is declared totaled, the auto insurance company will now proceed to find out how much the car costs. To find out the actual cash value of your car, they will look for the same model of your car and check its price tag. They will not check the original price of the car, no use hoping for that. The car price will be the actual cash value. Meaning, after they get the original price of the car, depreciation will be deducted from its value. The auto insurance company will consult with local auto dealers and part dealers. They’d check if they sell the same make and model as your wrecked car and see its present value.

Tags: auto insurance, car insurance, car insurance agent, Car Insurance Company

Car Insurance Premium Increase Georgia GA

Reader’s Question:

My car was rear-ended while driving in downtown Columbus. The other driver was issued a ticket. Will my car insurance premiums increase because of this?

Julia

Columbus, GA

Determining who is at fault in a rear-end accident is up to the authorities, and various factors are considered in their decisions. But in most rear-end accidents, the one who drove into another car is declared at fault. In your situation, since the other motorist was cited, it means that the police declared him or her as the one responsible for the mishap.

If you have a clean driving record, it is highly improbable that your premiums will increase following an accident that was not your fault. However, if you got into a related traffic accident before this no-fault one, you can expect an increase in your rates. The car insurer may consider you accident-prone if the two related incidents happened within two or three years.

Risk factor is the primary basis for insurance premiums, and car insurance companies calculate the possibility of a policyholder filing a claim. Citations can translate to higher premiums. The good news is that insurers only take note of moving violations. So, having parking tickets or any other non-moving violation would not be counted.

If you have a spotless record and have not been a liability to the car insurance company, then your premiums may not increase. If you are looking at lowering your premiums, consider taking a defensive driving course. Most insurers in Georgia offer discounts to drivers who have successfully finished the course. One ticket dismissal is also granted to drivers who complete the course. But this course can only be done once in a twelve-month period and cannot be repeated more than five times.Drivers need to pay, I think, less than $30 to take the course.

Tags: auto insurance premium, Car insurance discounts, traffic school

Motor Vehicle Insurance for Housemates Georgia GA

Reader’s Question:

I live in Georgia and share a flat with friends. Some of them borrow my car once in a while for out of town trips. They are not in my insurance policy. Do I need to get them listed under my coverage even if they are not my relatives?

Tim

Atlanta, GA

Having others use your car without them in your motor vehicle insurance coverage may be a big problem for you in the future. It’s not that you don’t trust your friends to drive safely or that you have a poor opinion of their driving skills, but you never really know when a car accident can take place. And if such unfortunate incidents ever do occur, and one of your friends happens to be the one driving your car, you may have a hard time processing your claims. A worse headache could be that this may lead to denial of your motor vehicle insurance coverage.

It is always smart to ensure everyone in the household who uses your car, even if they just drive it occasionally. Anyone who has a driver’s license or learner’s permit in your household could be listed under your motor vehicle insurance policy. This may actually cost you a little extra. But it shouldn’t be inconvenient as it would seem only fair to ask your friends to contribute to the cost of having their names listed in your motor vehicle insurance policy. Check with your insurance agent on how to actually go about this and don’t forget to inquire about multi-driver discount. A lot of motor vehicle insurance providers in Georgia offer this to motorists to make their insurance coverage affordable.

Tags: affordable car insurance, auto insurance, auto insurance coverage, car insurance agent, car insurance law