We know you probably have a lot of questions regarding Premier Toyota and your next new or used car purchase, financing or service. Below we've tried to answer the questions we receive from customers the most. Feel free to call us anytime if you don't find what you are looking for. Click on the shortcuts in the menu below for quicker, easier access:
Q: What is Premier Toyota's 1-800 number? A: 1-877-388-7422
Q: What is the TMS helpline / customer service? A: 1-800-874-8822
Q: What is the TMS payment number? A: 1-800-874-8822
Q: What is the TMS Roadside Assistance number? A: For a certified vehicle call: 1-800-297-0486 For (TAC) Toyota Auto Care call: 1-800-444-4195
Q: What is the title transfer time on a cash or finance deal? A: You will receive your title by mail within 28 days. It will be in a Premier Toyota envelope stamped with "Import Documents".
Q: What is the process to receive lease tags and what is the timeline? A: Title clerk will contact you when your tags have arrived. They will arrive within 30 days. You can pick them up at the front desk.
Q: What is the car rental process? A: Call Premier Toyota and ask for the car rental department. Our rental department will verify what we have available for you to rent and place on reserve. It is recommended that you reserve your vehicle one week in advance to pick up. At the time of pick up you must have a valid driver's license, major credit card, and be 21 years of age. Click for our rental department web page for more info!
Q: What is the car wash process? A: Bring your car in to Premier Toyota's service department and a service advisor will run it through the car wash for you. Q: Where can I mail my payment to? A: The payment addresses below serve the following states: Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, Tennessee and Wisconsin.
Finance Toyota Financial Services P.O. Box 5855 Carol Stream, IL 60197-5855
Lease Toyota Financial Services P.O. Box 4102 Carol Stream, IL 60197-4102
Q: Can I pay my bill online? A: To use Pay Online, you'll need your full bank account number, including your bank's routing number.
To start using Pay Online, follow these steps: 1. Log in to your TFS Account on the Resource Center Home page. 2. Click "Payments" at the top and then on "Enroll in Online Payments".
Q: Why should I purchase my vehicle from Premier Toyota Scion of Amherst? A:
Our customers, time after time, respond via surveys from the
manufacturer, that they loved the experience here at Premier Toyota
Scion of Amherst. Our philosophy is that we would rather not sell a
car, than have an unsatisfied customer. Our sales staff is made up of
29 individuals that have built respect in the community by being honest
and concerned that their customers get the best value for their money.
Most importantly, we have a dealer who cares about our customers. Bob
Fisher owns only one dealership, is very active in the management of
our store, and is adamant that his employees give you a competitive
price and the best service possible.
Q: What are your hours of operation? A: (see below)
Q: How do I purchase a vehicle using this website? A:
Click on "New Toyotas" from the navigation bar and click the quick
quote option on the drop down menu. From there, complete the
information, and our internet consultant will respond quickly with
price and availability. Upon your agreement of price and terms, we will
prepare the vehicle for delivery and set an appointment with you to
come to our store. Your time at Premier Toyota Scion of Amherst should
be 1 hour or less.
Q: How do I know when I'm getting the Best Price? A:
Everyone has this question and the answer is only when you are
satisfied that the price equals the value! There are 1400 Toyota
dealerships in the USA! We do not want you to pay us more than you
would another dealer! Since 1995 we have tripled our sales volume. Our
nearest competitor has had very little sales volume increase since 1995.
Q: Can Premier Toyota Scion obtain the exact vehicle that I want if they don't have it in stock? A:
We have 150 or more new Toyotas at our dealership and more incoming
units to our store at all times. If possible, we will reserve one of
those vehicles for you. If not we will trade with another Toyota dealer
to meet your color and equipment needs. Our distributor simply does not
order some configurations of color and equipment. You can use our CarFinder page to help find that perfect vehicle!
Q: How do I get to your dealership? A:
Click on the "Information" tab on the navigation bar, then click the
directions option from the drop down menu. Both a map and the option to
input your starting address are available for you to use to find
Premier Toyota Scion of Amherst.
Q: Why is credit information required before an interest rate will be quoted to me? A: Most lenders have instituted tiered rates, based on the credit rating of the purchaser.
Q: Can I have all my paperwork completed via fax/internet before I come in to pick up the vehicle from the dealership? A: Most of it. Some documents must be signed in person.
Q: Do I need to schedule an appointment with my sales consultant? A:
An appointment is recommended, but not required. Our sales staff would
like ensure that we are able to serve promptly by anticipating your
arrival.
Q: Do you have a College Graduate purchase or lease program? A:
Yes. This program is designed to help soon to be and recent college
graduates purchase their first new vehicle. The degree is considered in
lieu of credit history. Eligibility starts as early as 90 days before
graduation, if the applicant has a letter of intent for employment in
his or her field of study. Eligibility continues until 12 months after
graduation.
Q: Do you have a first time buyer program? A:
Yes, for the all new Yaris and Scion. This program targets the youth
market, and does not require previous car credit. One low limit credit
card is usually all that is required for credit history.
Q: Do we take trade-ins? A: Yes. We sell over 1,000 pre-owned cars every year. Most of these vehicles were traded by our new car customers.
Q: How much money are you going to give me for my trade? A:
Fair trade-in value. We always are in need of pre-owned vehicles for
our pre-owned department. Use the Value Your Trade option under the
?New Toyota? button on the navigation bar to evaluate your trade and
get an idea of the value of your car.
Q: Why is a deposit required to locate a vehicle for me? A: As we already have over 150 vehicles in stock, we would like a firm commitment from you before we purchase another one!
Q: Is my deposit refundable after the dealership has obtained a special vehicle for me? A:
If the vehicle is not in perfect condition, we wouldn?t expect you to
want to own it. If it is exactly what you ordered, we would expect you
to take delivery. However, situations occasionally arise that dictate
exceptions.
Q: What is a Destination Charge? A: It is the
cost to ship the vehicle from the factory to the dealership. The
Destination Charge is the same nationally for all dealers. Destination
charge is synonymous with freight.
Q: Why do I have to pay a Processing Fee? A:
This fee recovers some of the expenses a dealer incurs in getting the
vehicle from his lot to your driveway. Prior to delivery, each vehicle
has to have the contact paper removed, a state inspection, thorough
cleaning and polishing, pre-delivery inspection, and a full tank of
fuel.
Q: If I pay cash, can I get a better price? A: No. At Premier Toyota of Amherst we aren?t concerned with your method of payment until we have sold the vehicle.
Q: What is an Out The Door Price Quote? A:
A quote that includes all your costs including tax and tag. This is the
only valid way to comparison shop, as charges in addition to the price
of the car will vary from dealer to dealer.
Q: How often is your website updated? A: Daily! Our inventories are downloaded each evening. Other information is kept current as programs and specials change.
Q: Why trade-in? A: Trading
in your current vehicle towards a new Premier Toyota can partially
offset the cost of the new vehicle. The trade-in's net value goes
towards the purchase or lease of a new Toyota. Conditions of a trade-in
vary depending on who owns the vehicle.
If you own the vehicle,
trading-in means that you're selling the car to the dealer for some
determined price. As a result, the price of the new car goes down, only.
If
you are leasing a vehicle and do not own it, trading-in means that the
seller of the new car agrees to pay the outstanding costs associated
with the lease. Depending on the financing of the new vehicle and the
outstanding balance on the old one, trading-in can either raise or
lower the new car's price.
Q: Why is it beneficial to trade-in? A: When
you trade-in you don't have to worry about selling the vehicle yourself
or any of the associated costs (advertising, showing the car, etc).
Premier Toyota may offer a price you could not get yourself as an
incentive to purchase a new vehicle. If the trade-in has known problems
that could plague you later (when the buyer returns complaining),
selling the car to Premier Toyota eliminates the bother. Trading-in a
lease car may relieve you of, in the long run, monthly costs you cannot
afford. Sometimes people trade in lease vehicles because of poor gas
mileage or lack of practicality.
Q: Why decide against trading-in? A: If
you think you can get a better price selling privately, and it's worth
the time, money and effort, do not sell to Premier Toyota. Some cars
are of special interest and dealers will not always recognize those
interests.
Q: What happens to a trade-in? A: Premier Toyota
keeps some and resells as used cars. Many are sent to auction and
purchased by other dealers for resale. Dealers know that auction prices
often will not match the sum credited toward a new vehicle, but they
absorb the losses as sales incentives.
Q: How much can I expect to get? A:
Check used car values in guides issued by organizations such as
Edmunds.com or the National Automobile Dealers Association (NADA).
Often both trade-in and private sale values are listed. Factors such as
mileage, overall condition, damage and known mechanical problems
heavily influence the trade-in value.
Q: How do I schedule a service visit? A: You can schedule an appointment at Premier Toyota by calling our Service Department directly at 888-501-2755 or online simply by clicking the Schedule Service button within our drop down navigation.
Q: Does Premier have a body shop? A: No. However, we can make recommendations to reputable shops.
Q: What is the oil change coupon process? A: Call
and schedule your service appointment. Bring the coupon in at the time
of your service appointment and present it to the service advisor.
Q:Why won't my key turn in the ignition? A: Your steering wheel may be in the locked position. Try turning or jiggling your steering wheel about an inch in either direction while simultaneously turning your key.
Q: How do I reset my maintenance light? A: Push and hold the odometer reset button and turn the key to the "on" position until the maintenance light goes out.
Q: Do you have wireless Internet available in your waiting area? A: Yes, Premier Toyota offers free wireless Internet to customers waiting for service.
Q: Why is my tire pressure warning light on? A: Any time the tires are rotated or the tire pressures change this warning light come on. Simply follow the instructions in your owner?s manual to easily reset this light.
Q: What does it mean when the yellow check engine light comes on? A: This means that the computer in the vehicle is unable to accomplish something. It can be as simple as a loose fuel cap; however, in order to be sure, it does need to be checked by a Toyota dealer (preferably Premier Toyota!) in case the vehicle is in need of repairs.
Q: Can I make an appointment to have a state inspection performed on my vehicle? A: No. Unfortunately the state will not allow us to take appointments for this service. We must perform inspections on a first-come first-served basis. Premier Toyota offers this service Monday through Friday between the hours of 8am and 4pm as well as Saturdays from 7am to 1pm
Q: How long do you expect my service to take while I'm in the waiting room? A: This clearly depends on the type of service you are having performed. For simple maintenance, it is generally safe to estimate the following wait times: 1 Hour - Basic Service (5K, 10K, 20K, 25K, 35K, 40K, .etc) 2 Hours - Intermediate Service (15K, 45K, 75K, 105K, etc) 4 Hours - Major Service (30K, 60K, 90K, etc)
Q: Do you offer supplementary transportation to service customers? A: Yes, our local courtesy shuttle will drop you off at home or work. We also have a full fleet of rental vehicles which can be utilized for as little as $28 per day.
Understand the Conditions of Your Warranty
All new and many used vehicles arrive with a warranty covering unexpected repairs. Be sure to understand the duration and covered components of the warranty. A typical warranty might be written "48/50,000" meaning that coverage lasts either 48 months from the initial purchase or until the vehicle has 50,000 miles, whichever comes first.
Q: Why are multiple warranty periods listed? A: Depending on what is being repaired, the length of a factory warranty varies. Often a comprehensive "bumper-to-bumper" warranty covers everything outside of scheduled maintenance. This is generally the shortest warranty period. A usually longer powertrain warranty covers engine and transmission defects. Anti-corrosion protection often lasts even longer. Finally, some manufacturers offer roadside assistance for a limited time.
Q: Are used vehicles still covered under factory warranty? A: Warranties are often transferable, meaning that a vehicle inside its mileage and duration caps will maintain its factory warranty.
Q: How does one maintain the warranty? A: By performing required service at the proper intervals and responding if something clearly goes wrong. Your owner's manual explicitly lists service intervals, although cars are often equipped with "check engine" dashboard lights that signal needed maintenance.
Q: What is the driver's job? A: You just need to take the vehicle in for service when the time arrives. Factory-authorized technicians must perform service and any other outside maintenance can potentially void a warranty.
Q: Will a warranty pay for all expenses? A: Many warranties cover the parts and labor costs involved in fixing unexpected repairs but place the burden of expected maintenance on the customer. Certain repairs may be covered by some manufacturers and not by others.
Engine oil Changing your engine's oil and filter is one of the most vital maintenance procedures possible. Oil keeps friction down in the engine and prevents the motor from seizing up. Typical intervals for new cars are between 5,000 to 15,000 miles.
Engine coolant Water and antifreeze keep your engine from overheating and freezing during extreme temperatures. Intervals for flushing the system and replacing coolant vary, as some manufacturers promise long lasting antifreeze good past 100,000 miles. A general timeframe would be every few years or 30,000 to 40,000 miles.
Spark plugs Older vehicles required the replacement or adjustment of spark plugs much more often than new vehicles do. Manufacturers today promise over 100,000 miles before a tune-up that includes changing the plugs. Still, checking the plugs at 50,000 to 60,000 miles is not a bad idea.
Air filter The interval for changing the filter depends on the quality of filter, type of vehicle and environment in which most driving occurs. Traveling on dirt roads will surely clog a filter faster than paved highways. Also, local pollution can determine filter life.
Battery Again, the interval of changing a battery depends on the type of battery, type of vehicle and local climate. Super cold regions may require a more powerful battery for cold starting. Also, rechargeable batteries that have completely lost their charge at some point often never reach full potential again.
Hoses/belts/general pathways During scheduled maintenance it's a good idea to inspect all hoses, belts and other connections under the hood to be sure everything is in good shape and properly attached.
Windshield wipers Wipers need to be replaced, especially in climates with ice and snow. Sometimes just the blade needs replacing, while other times the entire wiper unit should go. Some customers may choose different types of wipers for better performance.
Tires The type of vehicle, specific tire and driving style determine the life of a tire. Many are rated to last 30,000 to 70,000 miles, but an aggressive style can wear out tires in 15,000 miles. Customers may deviate from OEM specification in the interest of better looks or performance.
Brakes Like tires, brake life depends heavily on driving style. Lots of stressful braking will significantly shorten the life. Replacement requires new rotors and sometimes, new pads.
Other issues Anything required for an annual inspection can also need replacing. Light bulbs, exhaust components and emission controls may require fixing.
Appropriate tires Different seasons require different types of tires. Many manufacturers sell vehicles with all-season tires that are suitable for most conditions. However, if your vehicle arrived with performance summer tires you should invest in a set of snow tires for safety in the bad weather. Some drivers with all-season rubber may also fit snows for added security.
Q: How does one find correct snow tires? A: No tire is perfect, as extra competence in one category often means compromise in another. For example, a tire that is great in snow may be so-so on dry pavement and average in the rain. Try to find reviews on a tire to determine if it meets your criteria.
Other Advice:
Always be sure to maintain the proper inflation for safety, performance and longevity.
Buy four matching tires, for the most part. Some rear-wheel-drive cars can get by with just rear snows, but front-wheel-drive cars should never have snows up front and non-snows out back. The inconsistency in grip during braking can cause the tail end to slide out of the driver's control. All-wheel-drive vehicles require four tires as well.
When purchasing a set of snow tires try to pick up an extra set of wheels on which the rubber can be mounted. Not having to mount/dismount tires each season saves time and maximizes tire life. Often your dealer will sell a reasonably priced set of steel wheel to match the snow tires.
More Seasonal Precautions
Be sure your engine oil is the correct viscosity. Colder climates can cause oil to thicken, demanding a thinner oil to start.
Check your antifreeze and be certain the proper water-to-antifreeze mixture is maintained. Antifreeze testers are available at many auto parts stores.
Verify that your windshield wipers are operable and keep the washer fluid reservoir full.
Double-check hoses and belts. Cold temperatures can cause rubber to shrink and crack, so be sure your hoses and belts have some flexibility left.
If a part on your Premier Toyota needs replacing there are three options for replacement:
First,
you can find a Toyota factory OEM part by either going through Premier
Toyota or contacting the manufacturer directly. Factory parts are built
by the OEM manufacturer to the exact same specifications as the
existing parts. New OEM components are generally the most expensive
option but often yield the best fit, durability and overall quality. If
you own your Toyota and are thinking of reselling, documenting repairs
using factory parts can increase the resale value of the vehicle.
Second,
you can find a new Toyota aftermarket part from a variety of parts
dealers online and at shops around the country. Aftermarket parts are
often exact replicas of OEM parts but are built by companies not
associated with the primary auto manufacturer. While aftermarket pieces
are less expensive than their OEM counterparts, they also may suffer in
terms of quality, fit and finish. Aftermarket parts are great to get a
car back up to speed if the budget is an issue and fit/quality do not
matter. However, some aftermarket companies produce pieces that are of
exceptional quality.
Third, you can find a used Toyota factory
(or maybe even a used aftermarket) part at a salvage yard or from a
private seller. Good used factory parts are a great way to save money
and get an OEM specified piece at the same time. Obviously, used parts
are subject to wear and are highly variable in their quality and
usability. Researching parts
To determine the best method of
replacing a part, check with Premier Toyota, owners of similar vehicles
and on the Internet to determine what option makes sense. You know the
new OEM part will work, so read online testimonials to see if
aftermarket replacements are worth the cost. You can also gain insight
that's helpful in a used search, learning the common defects/attributes
of a part before buying it yourself. Locating parts
Many
suppliers offer both Toyota OEM and aftermarket parts for a broad
range of vehicles. Some specialty parts may not be produced in the
aftermarket if demand does not warrant investment. Tracking down these
obscure pieces may require consulting a parts specialist. Some dealers
have caches of unused factory parts, often called New Old Stock (NOS)
or New Old Replacement Stock (NORS). These command high prices
especially when out of production. Add-on accessories
Like
replacement parts, some add-on Toyota accessories are factory
authorized while others are produced in the aftermarket. Depending on
the popularity of a vehicle, a variety of special components exist to
modify it. Engine enhancements, body kits, interior pieces,
electronics, exhaust systems, wheels and tires are among the many
elements that contribute to customization.
Feel free to call our Parts Department with any other questions at 888-571-0835 Go to Premier Toyota's Parts Center
Q. Can all Toyotas be Certified? A. No. First, the Toyota must have less than 85,000 miles on the odometer, and can only be the current model or five model years back. Additionally, the vehicle must have a Vehicle History Report run on it, and it must pass a comprehensive 160-point mechanical and appearance inspection. These requirements ensure that only the best of the best are used for Toyota Certification.
Q. Where can I purchase a Toyota Certified Used Vehicle? A. Toyota Certified Used Vehicles are available exclusively from your Toyota dealers. Premier Toyota of Amherst has a great selection of Toyota Certified Used Vehicles at affordable prices.
Q. What is a Vehicle History Report and how does it work? A. Currently, Vehicle History Reports (VHR) are available to auto auctions, dealers, and the general public, and are highly recommended for anyone in the market to purchase a used vehicle. At Toyota, we go a step further by requiring a VHR be run on each Toyota before it can become a Certified Used Vehicle. With a VHR we can tell if a vehicle has had a major structural damage, been previously declared a total loss, or has any odometer discrepancies. The VHR also helps to protect the integrity of the Toyota Certified process by disqualifying any vehicle that does not meet our high standards.
Q. What is Roadside Assistance? A. Roadside Assistance is a complimentary 7-year (from the original date of first use when sold as new), 24-hour roadside service that comes with each Toyota Certified Used Vehicle.
Services provided include:
* Towing up to $100 for mechanical breakdown or collision recover to the nearest Toyota dealership or repair facility * Flat tire changes * Jump starts * Lockout service * Gas deliveries (does not include payment for the gas) * Travel protection * Substitute transportation * Toll-free service calls 24 hours a day
Q. Is the Toyota Certified Used Vehicle Limited Powertrain Warranty transferable to a new owner? A. Yes. The Limited Powertrain Warranty is transferable to a subsequent owner at no charge.
Q. How long is the Toyota Certified Used Vehicle Warranty in effect? A. Your Certified Warranty expires at the earlier of six years (from original date of first use when purchase as new) or when your odometer reaches 100,000 miles.
Q. Is there special financing available for Toyota Certified Used Vehicles? A. Yes. There are special financing rates available.
Q. Can I lease a Toyota Certified Used Vehicle? A. Lease rates are available. Please visit the Toyota Financial Services section of Toyota.com.
Q: Are monthly payments necessary? A:
Unless you're in the position to pay cash for a new or pre-owned
Premier Toyota, you'll need to establish a payment plan to obtain that
vehicle. Two options exist - taking out a loan or leasing.
Q: How do loans and leases differ? A:
When you take out a loan, all of the money used to pay it off applies
to your eventual ownership of your Toyota. The initial down payment and
principal on the loan cover the total cost of the purchase. Lease
payments, however, apply only to the use of the vehicle. The total sum
of payments covers the vehicle's depreciation over the time you drive
it and is usually less than the outright price of the vehicle.
Q: When is ownership transferred? A:
When paid in full, a loan terminates and you assume ownership. Your
bank sends you the title that had been held while the loan maintained
an outstanding balance. When a lease period ends you forfeit the
vehicle to the lessor, unless the lessor offers to sell the vehicle
afterwards. During the entire lease period the lessor maintains
ownership and simply allows you to use the car. Ownership is only
transferred if you chose to buy the vehicle after the lease terminates.
Q: How are monthly lease rates determined? A:
In formulating a monthly payment structure, a lessor is primarily
concerned with the extent to which the vehicle will depreciate
throughout the lease and the cost of borrowing money to finance the car
during that period.
Three key elements:
First, the
adjusted capitalized cost is determined. This figure represents the
real purchase price after elements such as the down payment, incentive
discount and trade-in credit are deducted from the capitalized (actual)
cost, while any fees or charges (e.g. destination) are added.
Second,
the residual value, or estimated value of the vehicle at the end of the
lease, is determined and then subtracted from the adjusted capitalized
cost to yield a depreciation figure. The residual value depends on the
length of the agreement, expected mileage and make/model of the vehicle.
Finally, a lessor assesses the money factor, a number that correlates with the cost of borrowing money during the lease period.
While
these terms may seem unfamiliar, the Federal Reserve Board now requires
dealers to publicize all leases' down payment amounts, lengths,
residual values and interest rates.
Q: What factors determine the purchase price at the end of a lease? A:
Most leases rely exclusively on the residual value in determining the
end of term purchase price. These closed-end deals require you to pay
the fixed residual amount regardless of the actual market price.
Open-end leases work differently in that the actual market value helps
determine the purchase price. As a customer you are responsible for any
difference between the residual and actual value when buying outright.
Q: How are loan rates determined? A:
The size of monthly loan payments depends on the amount borrowed, the
length of the loan, the interest rate and other factors such as your
credit history. Paying more money initially lowers the principal of the
loan, thus reducing individual payments. At any period during the loan
you may opt to pay off the principal in its entirety, at which point
the title of the vehicle is transferred to you.
Q: What are some general load specifications? A:
Down payment amounts may range between 10 to 20 percent of the
vehicle's total cost, although some purchases require no down payment.
A typical loan period is five years with an annual percentage rate
around 8 percent. Some manufacturers offer lower rates, but be sure to
investigate any associated conditions or clauses.
Q: Are loans available for used vehicles? A:
Yes, although they function somewhat differently from new car loans. A
down payment of 20 percent or more is often required and the interest
rate can be a point or two higher. Understandably, banks are more
hesitant to loan money for used car purchases, as they would rather own
a newer car if the borrower defaults. However, the market is full of
good used vehicles, many of which are created by short term leasing.
Q: Can extra fees and charges be financed? A: Yes, registration, taxes, extended service plans and other supplemental charges may be included in the financing plan.
Q: Which option makes the most sense? A:
The answer to this question depends on how you plan to use your new or
used Toyota. If you like the idea of driving a more expensive vehicle
for a smaller monthly payment, leasing is a great option. However, if
eventually owning the car is important, financing with a loan is the
way to go.
Q: What are the restrictions of driving a "borrowed" vehicle? A:
Annual mileage restrictions are a major limitation for customers who
choose to lease. Lessors want their vehicles returned in saleable
low-mileage conditions, so they place mileage caps on them. A typical
yearly figure is between 12,000 and 15,000 miles. Beyond the
established limit, fees accrue on a per-mileage basis, usually in the
range of $0.10 to $0.25 per mile. So if most of your driving is local,
leasing makes sense. However, if you consistently tack on 500 or more
miles a week, definitely look into a loan.
Q: What are the other virtues of a loan? A:
Loans are also sensible for those who want to customize their Toyota,
plan on keeping their cars for long periods of time and plan to re-sell
their vehicles to help recoup the costs of ownership or expenses of
additional cars. For those who quickly wear vehicles out, loans may be
safer bets as lessors often add "excessive wear" charges if the car is
returned with wear over the limits established by the contract.
Q: Why lease? A:
Leasing ensures that you'll always drive a late-model Toyota, won't
have to pay for warranty-covered repairs and won't have to bother with
re-selling at the end.
Q: What are the laws regarding automobile insurance? A:
The laws vary by state, but most require basic liability coverage.
States want to be sure that motorists have some financial backing in
the event of a collision or any insurance-related incident. Most states
require insurance to operate a vehicle in any circumstance, but there
are a few exceptions:
Tennessee and Wisconsin do not require
liability but legally expect drivers to prove adequate "financial
responsibility" in the event of a collision. (Source: TN, WI DMV
websites)
New Hampshire initially requires no insurance but does temporarily after a collision. (Source: NH DMV website)
Virginia
is a rare exception, allowing a driver to pay a $500 Uninsured Motor
Vehicle fee to legally operate without insurance at his/her own risk.
However, the fee expires with the registration and must be renewed.
Drivers in Virginia opting for insurance must meet the state's minimum
coverage. (Source: VA DMV website;
http://www.dmv.virginia.gov/webdoc/citizen/vehicles/insurance.asp)
Drivers in these four states often still carry insurance as protection.
Q: How is one protected from uninsured drivers? A:
By purchasing uninsured/underinsured motorist coverage. UM/UIM pays for
medical bills if you and any occupants are hit by an uninsured motorist
or one without enough insurance. Many states require this coverage by
law.
Q: How is a vehicle protected from uninsured drivers? A:
Uninsured/underinsured motorist property damage coverage pays for
damage to your vehicle if hit by a driver without any or enough
insurance. Some states offer this coverage in place of collision
coverage.
Q: Is coverage transferable from state-to-state in the short term? A:
Yes, if you have an insurance policy you're covered throughout the
United States. Moving to a different state temporarily may require
changing coverage, depending on the amount of time a state allows
residency with out-of-state insurance.
Q: What about long-term? A:
Moving for the long-term definitely requires switching insurance,
although the time to do so can be somewhat variable. For example, a
state may technically require changing after 90 days, but if you have
two full months left on your current policy it would seem silly to
switch prematurely. However, the "grey" period in between could prove
problematic in the event of an incident.
Q: What is an SR-22? A:
An SR-22 is a form that proves a driver has insurance or is financially
responsible. High-risk drivers are often required to carry these forms
for periods of 3 to 5 years, depending on their offenses.
Q: What is liability insurance? A:
Liability covers bodily injury (including death) and property damage to
others if you are determined responsible for an accident, even if you
are not driving. Owning the vehicle and lending it to someone else
constitutes responsibility. Liability coverage also pays for legal fees
if you are sued as a result of an accident.
Q: How does one decipher the numbers associated with liability? A:
Insurers will often represent liability coverage with three consecutive
numbers; for example, 50/100/25. The first number stands for maximum
amount payable for an individual bodily injury in an accident, in this
case $50,000. The second number represents the available coverage for
all injuries in an accident, or $100,000. Finally, the last number
denotes maximum property damage liability for one accident, $25,000.
Q: What are the minimum requirements? A:
Amounts of required coverage vary among states. Along the spectrum of
minimum coverage, a low figure is 15/30/5 (California, New Jersey)
while a high set is 50/100/25 (Alaska, Maine).
Q: What is comprehensive insurance? A:
Comprehensive coverage pays for damage to your vehicle that is not
caused by an accident with or without another vehicle. Natural events -
fire, wind and flood - are included, in addition to theft and
vandalism. Damaging encounters with animals are included as well. If a
vehicle is stolen, comprehensive will reimburse you for any related
expenses or losses. Some comp plans pay for the replacement of broken
glass, often known as full-glass coverage.
Q: What is collision insurance? A:
Collision pays for damage to your vehicle in the event of an accident,
regardless of whether or not another vehicle is involved. This
insurance also provides you coverage if you are driving a non-owned or
rental vehicle.
Q: What if the accident is my fault? A:
Several states have enacted "no-fault" policies that mandate your
insurance company pay compensation for injury or damage regardless of
who is to blame. These laws are meant to streamline the liability
process while reducing injury fraud and lowering premiums.
Q: How are insurance rates determined? A: Many different factors contribute to the final insurance rate. Generally, these pieces fall into the following categories:
Personal
information - name, address, date of birth, gender, marital status,
home ownership status, employment, education, credit history,
membership status to various organizations, social security number (in
some cases), age at which a driver's license was first obtained and
very importantly, your driving record.
Family information - other primary drivers, other occasional drivers and their driving histories.
Vehicle
information - year, make, model, primary use (pleasure/work), how often
the vehicle is driven to work or school, business use of the vehicle,
how long you've owned the vehicle, factory safety equipment, presence
of an alarm/immobilizer system, expected annual mileage and zip code at
which the vehicle is normally parked.
Previous insurance
information - name of previous insurer, length of previous insurance,
lapses in insurance, previous liability limits and other coverage.
Previous
insurance claims, accidents and moving violations - essentially an
elaboration on your driving record, including dates and severity of the
events and costs of repair.
Desired coverage - limits on liability and whether or not comprehensive and collision are chosen.
Q: Why is the parking zip code required? A:
Insurance companies want to know where the vehicle is kept most of the
time and if it garaged, driveway parked or street parked. Obviously,
areas with higher crime will contribute to higher comprehensive rates
than those with lower crime.
Q: What is a premium? A: A premium is just another name for a rate.
Q: What is a deductible? A:
A deductible is a fixed amount of money you pay for each insurance
claim. For example, choosing a deductible of $500 per accident means
that for each accident you pay that amount before the insurance pays.
If you chose to add comprehensive or collision you can vary your rate
by adjusting your deductibles. High deductibles correspond to lower
rates, while low deductibles often mean higher rates.
Q: What if the claim is below the deductible? A:
You pay the full cost. If you carry a $1,000 deductible for collision
and a minor accident causes $700 in damage, you're fully responsible
for the cost.
Q: What if a vehicle can be repaired for less than the paid amount? A:
Often a vehicle is repaired without using the entire insurance payment.
Although different insurers maintain different policies, repairs are
generally supposed to be documented to show the money went into the
repair of the car. It's perfectly legal to keep part or all of the
money and not fix the car, but in the event of another accident with
the same vehicle an insurance company may reduce payment in accordance
with the first payment. For example, if an insurance company pays
$2,500 for an accident and only $1,000 is documented in repairs, the
insurer will assume that the remaining $1,500 is still available and
reduce the second payment by that amount.
Q: What is a total loss? A:
Vehicles that are considered totaled are determined not suitable for
repair. Insurers pay the cost of replacing the vehicle with a similar
vintage make and model.
Q: Are only certain shops allowed to perform the repairs? A:
No, most states allow the shop to be chosen at your discretion. Some
body shops may not be approved by the insurer, in which case you might
have to pay a little more.
Q: Are aftermarket or OEM parts used for repair? A:
Depends on the parts' availabilities. You can request that factory
authorized parts be used, although sometimes this costs a bit more.
Q: How long does a policy last before needing renewal? A:
Generally speaking, policies run either six months or one year, at
which point the rates may be adjusted to reflect differences in the
driver's record, number of drivers, covered vehicles, etc.
Q: What is a Declarations Page? A:
A Declarations Page is a report from your insurer stating your coverage
and limits, drivers insured, vehicles covered and the cost of coverage.
These reports usually arrive shortly after renewal or when beginning a
new policy.
Tips for reducing insurance premiums
While
reducing liability coverage and raising deductibles may lower premiums,
there are other ways to lessen your rates without sacrificing any
coverage. Keep a clean record
Some insurers offer a discount
to drivers who consistently prove to be safe drivers by not receiving
moving violations or being involved in accidents. At the least, keeping
a clean record will prevent extra surcharges from being added to your
premium.
Maintain consistent coverage
Customers who do not lapse in their insurance often receive a better premium when applying for new coverage. Take a defensive driving course
Drivers
who participate in official courses in defensive driving may see
reductions in their rates, especially if accidents or moving violations
appear on their driving records. Take a Driver Improvement course
For drivers over 55 years of age, these refresher courses can improve skills while reducing rates. Choose a suitable vehicle
Certain
vehicles are cheaper to insure depending on their characteristics. A
basic Volvo and a powerful Chevrolet Corvette are likely to have very
different rates.
