Auto Insurance: What's The Deal With 'Die Ssii'?

Auto insurance is a contract between you and an insurance company that provides financial protection in the event of an accident, theft, or damage. It covers damage to your vehicle and protects you financially if you're liable for someone else's injuries or property damage. Most states require drivers to have a minimum amount of auto insurance, and failing to obtain this can result in fines, license suspension, or even jail time for repeat offenses. Auto insurance policies are typically issued for six-month or one-year periods and are renewable.

What to do if a policyholder dies

Dealing with the death of a loved one is an emotionally challenging time, and the last thing you want to think about is insurance. However, it is important to notify the insurance company as soon as possible to avoid any issues with claims or coverage. Here is a step-by-step guide on what to do if a policyholder dies:

Notify the Insurer

It is crucial to inform the insurance company about the policyholder's death as soon as possible. Most insurance companies give at least 30 days to notify them of the death, and they will remove the late spouse from the policy one day after the reported date of passing. If some time has passed since the policyholder's death, their name can be removed, and reimbursement may be possible.

Provide Documentation

When contacting the insurance company, you will need to provide certain documentation. This typically includes a death certificate and proof of executorship or a probate form/executor of the estate documents. If you have access to a recent statement or a copy of the policy, this may also be helpful.

Wait for Confirmation

The insurance company will process the cancellation of the policy, which typically takes one day. If the policy was paid in advance, you may receive a refund for the remaining period.

Handle Open Claims

If the policyholder had any open claims before their death, you can still notify the insurance company of the death and proceed with the policy cancellation. The claim can still be processed and settled, and any deductible or out-of-pocket costs will be paid through the deceased's estate.

Transfer Vehicle Ownership

If you are taking possession of the deceased's vehicle, you will need to change the title at the local DMV and purchase a new insurance policy in your name.

Review Health and Life Insurance

If you were a dependent on the deceased's health insurance policy, you will need to take action to continue coverage. You can extend benefits through COBRA by notifying the employer within 30 days or enrol in a new plan through the Affordable Care Act (ACA) within 60 days. For life insurance, contact the insurance provider to inquire about the conditions for receiving the death benefit and file a benefit request.

Handling insurance policies after a loved one's death can be tricky, but it is important to take care of these matters to avoid any financial issues and ensure a smooth transition.

Discounts for auto insurance

Driver Safety Car Insurance Discounts:

These are some of the most common discounts offered by insurance companies. They reward drivers for their good driving habits and can include:

• Defensive driving course discount: For drivers who take certified defensive driving lessons, resulting in a discount of around 10% to 15% on liability, collision, and personal injury or medical payments coverages.
• Accident-free or 'good driver' discount: For drivers with no accidents or traffic violations in the past three to five years, resulting in savings of up to 26% with companies like Geico.
• Safe driver discount: Rewarding motorists for conservative habits such as seat belt use, low driving speeds, and gentle braking, with savings of around 10% on liability and collision insurance rates.

Driver Status Car Insurance Discounts:

These discounts are based on the driver's characteristics rather than their driving habits. They can include:

• Student away from home discount: For students who leave their cars at home while attending college, resulting in savings of up to 25% on liability coverage.
• Good student discount: For full-time students with good grades (usually a B average), resulting in savings of up to 25% on their insurance premiums.
• Military and federal employee discount: For those who have served in the military or worked for the federal government, with Geico offering discounts of 8% to 15% on the entire policy.

Policy Car Insurance Discounts:

These discounts are based on the insurance policy and can often be combined with other discounts. They include:

• Home and auto ownership discounts: For customers who bundle their home and auto insurance policies, resulting in average savings of around 18%.
• Multi-car discount: For insuring multiple vehicles with the same company, resulting in savings of up to 25%.
• Bundling/multi-policy discount: For customers who purchase multiple policies from the same insurer, such as home and auto insurance, resulting in savings of 5% to 25% on the total auto insurance rate.
• Paid-in-full discount: For paying the entire six-month or annual insurance rate upfront, resulting in savings of around 5% to 10%.

Vehicle Feature Car Insurance Discounts:

These discounts are offered for vehicles with certain features, such as anti-theft devices, anti-lock brakes, or passive restraints. They can include:

• Anti-theft car insurance discount: For vehicles equipped with anti-theft devices, resulting in savings of 5% to 15% on comprehensive coverage.
• Anti-lock brakes discount: For vehicles with factory-installed anti-lock braking systems, resulting in savings of 5% to 10% on collision coverage.
• Passive restraint discount: For vehicles with front airbags and seat belts, resulting in savings of 25% to 30% on personal injury protection or medical payments coverage.

It's important to note that the availability and specifics of these discounts may vary by state and insurance company. Additionally, some discounts may be automatically applied, while others may require customers to inquire about their eligibility.

Required auto insurance coverages

Auto insurance requirements vary by state, but there are some common types of coverage that are mandated across the US. These include liability insurance, which covers damage and injuries you cause to others in an accident, and is required in nearly every state. The minimum liability insurance coverage mandated by states is usually split into three categories: bodily injury per person, bodily injury per accident, and property damage per accident. For example, in California, the minimum liability insurance requirement is $15,000 for bodily injury to one person, $30,000 for bodily injury to multiple people in a single accident, and $5,000 for property damage.

In addition to liability insurance, some states also require drivers to carry other types of auto insurance, such as uninsured motorist coverage, personal injury protection (PIP), and medical payments coverage. Uninsured motorist coverage protects you if you are in an accident with a driver who does not have insurance or does not have enough insurance to cover the costs of the accident. Personal injury protection covers medical bills, lost wages, and other expenses for you and your passengers, regardless of who is at fault in the accident. Medical payments coverage is similar to PIP but is typically offered with lower coverage limits and a higher premium.

While these are the most common types of required auto insurance coverage, it is important to check the specific requirements for your state, as they can vary significantly.

Additional auto insurance coverages

There are several additional auto insurance coverages that you can choose to add to your policy for greater financial protection. Here are some of the most common ones:

• Emergency Road Service or Roadside Assistance: This coverage provides 24/7 roadside assistance if your car breaks down. It can help with towing, tire changes, locksmith services, jump starts, and fuel delivery. Some companies also include limited coverage for rideshares.
• Rental Reimbursement or Rental Car Reimbursement: This coverage pays for a rental car if your vehicle is stolen or being repaired after an accident. It can cover the cost of a rental car for a specified number of days, and some policies also include taxis or ride-hailing services.
• Mechanical Breakdown Insurance: This coverage helps pay for repairs to your vehicle due to mechanical issues, rather than accidents.
• Towing and Labor Coverage: This coverage pays for towing your car if it can't be driven and for labor costs, such as changing a flat tire or jump-starting a battery.
• Collision Coverage: This coverage pays to repair or replace your car if it's damaged in a collision with another vehicle or object. While legally mandated insurance covers damage to other vehicles, collision coverage is optional and reimburses you for damage to your own car when you're at fault.
• Comprehensive Coverage: This coverage protects your vehicle from events beyond your control, such as fire, theft, vandalism, and natural disasters. It also covers damage caused by animals or falling objects.
• Medical Payments Coverage or Med Pay: This coverage pays for medical and funeral expenses for you, your family members, or passengers, regardless of who is at fault in the accident.
• Personal Injury Protection (PIP): This coverage is similar to Med Pay but offers additional benefits, such as lost wages and other non-medical costs. PIP is offered in some states and is included in all auto policies in Texas.
• Uninsured/Underinsured Motorist Coverage: This coverage protects you if you're in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover the damages. It also applies in hit-and-run accidents.
• Glass Coverage: This coverage includes no-deductible glass coverage for your windshield, side windows, rear windows, and glass sunroofs.
• Gap Insurance: If you lease or finance your vehicle, gap insurance covers the difference between the amount you owe and the actual cash value of your vehicle if it's totaled or stolen.
• Rideshare Coverage: If you drive for rideshare or delivery service apps, this coverage protects you during periods when you're logged into the app but not covered by the company or your personal insurance.

How to get a car insurance quote

To get a car insurance quote, you will need to provide some personal and vehicle information. This includes:

• Your name and date of birth
• Your driver's license number and state of issue
• Your driving history, including any tickets or accidents
• The make, model, and year of your car
• Your vehicle identification number (VIN)
• The physical address where your vehicle is stored
• The name of the registered owner of the vehicle
• Your prior insurance carrier and expiration date (if applicable)

You can get a car insurance quote online, over the phone, or by visiting an agent in person. It is important to compare quotes from multiple companies to find the best rate and policy for your needs. When comparing quotes, be sure to select the same coverages, policy limits, and deductible amounts for each.

Some companies offer additional discounts for things like good student grades, being a federal employee, safe driving history, or having safety features like airbags and anti-lock brakes in your car. Be sure to ask about any available discounts when getting a quote.

Overall, getting a car insurance quote is a straightforward process that can help you find the best coverage and rates for your needs.

Frequently asked questions