On the first day of February, I set down with James Stocker from Silver Key Insurance INC.  to discuss some basic questions around insurance. I chose James because he handles insurance for auto, home, along with other types insurance. He is not tied into just one or two insurance companies. James has an offering from quite a selection. Thus giving us the most objective look at the important facts about getting auto insurance.

Drivers, in Idaho are required to carry a minimum liability of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 per accident in property damage coverage. This does vary from state as well as the penalties for not having auto insurance. That is why you need to go to auto insurance requirement, state by state to find out what you need.

In most cases James does not recommend you carry the minimum liability limits.  If you seriously injure someone in an accident $25,000 doesn’t go very far for medical care.  The difference between $25,000 and the actual cost of care will then come from your savings, retirement accounts and even your home.  You could essentially lose everything you have.  Even if you have an old clunker that is more or less a back up vehicle for when you main transportation breaks down. You will not want the minimum amount of coverage. Newer cars, especially those you buy with a loan, will need liability coverage and comprehensive and collision coverage. You can get this coverage for a reduced rate by having a deductible of $100, $250, $500 or $1,000.  The higher the deductible the lower the rate.

I knew that auto insurance rates were determined by the number of accidents and tickets one would would gather over a three year period. James informed me that my credit score has a big factor in how much I pay for insurance.

Idaho laws forbids from charging more for a low credit score, but with a high credit score I can get extra discounts. This holds true for homeowners insurance as well as auto insurance.

Over the years insurance companies have gotten bad reputations because writing in little clauses that are written into the policy. These clauses say you are only covered if you hit a red pick up truck or a redwood tree from northern California falls on your car.

It is good to know the reputation from where you buy your insurance. That is why I recommend you look at J.D. Powers and Associates rating on auto insurance companies.

Now if you have any more question, I recommend you contact James Stocker. If he does not have the answer, he will definitely know where to get the answer for you. Let James know got the facts from The Shopping Nazi.

Tags: Car Insurance, insurance, James Stocker, JD Powers and Assoc., Silver Key Insurance