FAQ

What types of auto insurance are available? Common types of auto insurance include:

• • Liability coverage (bodily injury and property damage)

• • Collision coverage

• • Comprehensive coverage

• • Uninsured/underinsured motorist coverage

• • Personal Injury Protection (PIP)

• • Medical payments coverage

• • Roadside assistance

• • Rental reimbursement

Is auto insurance required by law? Yes, in most places, auto insurance is required by law to drive legally. Each state in the U.S. has its own minimum coverage requirements.

What is the minimum coverage required for auto insurance? 

• • The minimum required coverage varies by state. In Florida it’s
    
    • • Personal Injury Protection (PIP):
        
        • • Minimum of $10,000 in coverage. PIP covers medical expenses for you and your passengers in the event of an accident, regardless of who is at fault.

    • • Property Damage Liability (PDL):
        
        • • Minimum of $10,000 in coverage. PDL covers the cost of damage you cause to another person’s property in an accident.

How much auto insurance do I need? The amount of coverage you need depends on state requirements and your personal situation. Generally, it’s recommended to have enough coverage to protect your assets in case of an accident. For instance, you may want higher liability limits if you have significant savings or valuable property.

Can I drive without auto insurance? In most states, driving without auto insurance is illegal and could result in fines, license suspension, or vehicle impoundment.

What is a deductible in auto insurance? A deductible is the amount you pay out-of-pocket before your insurance kicks in to cover a claim. For example, if you have a $500 deductible and your repair costs $2,000, you would pay $500, and the insurance would cover the remaining $1,500.

What is liability coverage? Liability coverage pays for damage you cause to others in an accident, including bodily injuries and property damage. It doesn’t cover your own damages.

What is collision coverage? Collision coverage pays for damage to your vehicle from a collision, regardless of fault, typically after you pay your deductible.

What is comprehensive coverage? Comprehensive coverage pays for non-collision-related damage to your car, like theft, vandalism, natural disasters, or hitting an animal.

What is uninsured/underinsured motorist coverage? This covers your expenses if you’re in an accident where the at-fault driver has no insurance or insufficient insurance to cover the damages.

What does personal injury protection (PIP) cover? PIP, often called no-fault insurance, covers medical expenses, lost wages, and other costs if you’re injured in an accident, regardless of who is at fault.

What is medical payments coverage? Medical payments coverage (MedPay) helps pay for medical expenses for you and your passengers if injured in an accident, regardless of fault.

What is roadside assistance in auto insurance? Roadside assistance provides services like towing, tire changes, jump-starts, and lockout assistance when your car breaks down.

Does auto insurance cover rental cars? Auto insurance often extends to rental cars, but it’s important to confirm with your insurer. Rental car companies may also offer additional insurance.

Is auto insurance the same across all states? No, auto insurance requirements, coverage options, and premiums can vary by state due to different laws and regulations.

Can I use my insurance to repair another person’s car? Typically, no. Your insurance generally only covers damage to your own car or liability for damage you cause to someone else’s car. You can only use your policy to repair someone else’s car if you have liability insurance that covers their damage.

How do I file an auto insurance claim? To file a claim, contact your insurance company, provide details about the incident (accident, theft, etc.), and submit documentation (photos, police reports). The insurer will guide you through the process.

Will my insurance rates go up after an accident? Your rates may increase after an accident, especially if you are found to be at fault. However, this depends on your insurer and accident history.

What is an SR-22, and when do I need it? An SR-22 is a form that proves you have car insurance. It’s typically required after certain violations (e.g., DUI, driving without insurance) and is usually a requirement for getting your license reinstated.

---

Car Insurance Coverage

What does comprehensive coverage include? Comprehensive coverage includes protection against theft, vandalism, natural disasters, falling objects, fire, and hitting an animal.

Does auto insurance cover theft? Yes, comprehensive insurance covers theft of your car or its contents.

Does auto insurance cover vandalism? Yes, if you have comprehensive coverage, vandalism is typically covered.

Does auto insurance cover natural disasters? Yes, comprehensive coverage typically covers damage due to natural disasters, such as floods, hurricanes, or earthquakes.

What’s the difference between full coverage and minimum coverage?

• • Full coverage includes liability, collision, and comprehensive coverage.

• • Minimum coverage only includes the required liability coverage, and may not cover your vehicle’s damage in an accident.

Does auto insurance cover hitting an animal? Yes, comprehensive coverage typically covers damage caused by hitting an animal.

Does auto insurance cover damage to my own car in an accident? If you have collision coverage, it will cover damage to your car in an accident, regardless of fault.

What is gap insurance, and do I need it? Gap insurance covers the difference between what you owe on your car loan and the car’s current value if it’s totaled in an accident.

What is rental reimbursement coverage? Rental reimbursement covers the cost of renting a vehicle if your car is being repaired after a covered accident.

What is glass coverage in auto insurance? Glass coverage provides coverage for repair or replacement of broken windows or windshields.

How much liability insurance should I have? It depends on your assets and state requirements, but most financial experts recommend having at least $100,000 in bodily injury liability per person and $300,000 per accident, and $100,000 for property damage.

What is uninsured motorist bodily injury coverage? This covers medical expenses if you are injured by a driver who does not have insurance or insufficient insurance.

What is the difference between liability and collision insurance?

• • Liability covers damage or injury you cause to others.

• • Collision covers damage to your car in an accident, regardless of fault.

Does auto insurance cover car repairs if it’s my fault? If you have collision coverage, it will cover repairs to your car if the accident is your fault.

Will my auto insurance cover me when I drive out of state? Yes, your auto insurance typically covers you nationwide, but it’s always a good idea to check with your insurer.

Is windshield repair covered by auto insurance? Windshield repair is often covered under comprehensive coverage, and some states even require insurers to offer free windshield repairs.

Does my auto insurance cover me in other countries? Coverage in other countries depends on your insurer and the specific policy, so it’s best to check if you plan to travel abroad.

What is collision coverage, and when do I need it? Collision coverage pays for damages to your car in an accident, regardless of fault. It’s recommended for those with a car loan or lease, or if your car has significant value.

Does auto insurance cover personal items stolen from my car? No, auto insurance typically doesn’t cover personal items in the car. You may need renters or homeowners insurance for this.

---

Premiums, Costs & Discounts

How is my auto insurance premium determined? Your premium is based on factors like your driving history, the type of car you drive, where you live, your age, your credit score, and the amount of coverage you select. Insurers use these to assess your risk level.

How can I lower my auto insurance premium? To lower your premium, consider:

• • Increasing your deductible

• • Bundling policies (e.g., home and auto insurance)

• • Installing anti-theft devices

• • Maintaining a good driving record

• • Taking a defensive driving course

• • Shopping around for better rates

What factors affect my auto insurance rate? Key factors include:

• • Age and driving experience

• • Type of vehicle

• • Driving record

• • Location

• • Credit score

• • Coverage type and limits

• • Deductible amount

• • Annual mileage

Do driving violations affect my insurance premium? Yes, traffic violations (like speeding tickets, DUIs, or accidents) typically result in higher premiums, as they indicate a higher risk for the insurer.

Does a clean driving record lower my premiums? Yes, having a clean driving record (no accidents or violations) generally results in lower insurance premiums because it signals to insurers that you’re a lower-risk driver.

What is a no-claim discount? A no-claim discount (or claim-free discount) is a reduction in your premium if you haven’t made any claims in a certain period, typically one to five years.

Are there discounts for safe drivers? Yes, many insurers offer discounts to drivers with a history of safe driving, which can be determined by your accident history and driving habits.

How can I qualify for a good student discount on auto insurance? To qualify, the student typically needs to:

• • Be under 25

• • Have good grades (usually a B average or higher)

• • Be a full-time student

Will my credit score affect my car insurance rates? Yes, in most states, your credit score can influence your auto insurance premium. A higher credit score usually results in a lower premium because insurers consider you a less risky driver.

Do I get a discount for bundling my auto insurance with other policies? Yes, many insurers offer discounts if you bundle auto insurance with other policies like homeowners, renters, or life insurance.

Can I get a discount for installing an anti-theft device in my car? Yes, many insurers offer discounts for cars equipped with anti-theft devices like alarms, GPS tracking, or steering wheel locks, as these reduce the risk of theft.

How often should I shop around for car insurance quotes? It’s a good idea to shop around every 6-12 months to ensure you’re getting the best rate, as rates can change based on your driving record, the market, and other factors.

How do I find out if I’m getting the best auto insurance rate? To ensure you’re getting the best rate, compare quotes from multiple insurers, check for discounts, and review your coverage limits to see if they match your needs.

Can I get a refund on my car insurance if I cancel early? Yes, many insurers offer a refund for the unused portion of your premium if you cancel your policy early, but this depends on the insurer’s terms and conditions.

What happens if I don’t pay my insurance premium on time? If you don’t pay your premium on time, your policy may lapse, which means you’ll no longer be covered. Some insurers offer a grace period, but it’s important to pay on time to avoid penalties and loss of coverage.

How can I make my car insurance more affordable? You can make your insurance more affordable by:

• • Increasing your deductible

• • Reducing unnecessary coverage (e.g., on an old car)

• • Maintaining a good driving record

• • Taking advantage of discounts

• • Shopping around for better rates

---

Filing Claims and Accidents

How do I file an auto insurance claim? To file a claim, contact your insurer as soon as possible after the incident. Provide necessary details, such as accident reports, photos, and any other documentation. The insurer will guide you through the process.

What should I do immediately after a car accident?

• • Ensure safety (move to a safe spot, if possible)

• • Call emergency services if needed

• • Exchange information with the other driver (license, registration, insurance)

• • Take photos of the scene, damage, and any injuries

• • Report the incident to your insurer

How long do I have to file a claim after an accident? Most insurers require you to report the accident within a certain time frame, typically 24 to 72 hours. Check your policy for specific details.

What happens if I’m at fault in an accident? If you’re at fault, your liability coverage will pay for the other driver’s damages and injuries. Your collision coverage may cover your own damages, minus your deductible.

What happens if the other driver is at fault and doesn’t have insurance? If the other driver is uninsured, your uninsured motorist coverage will pay for your medical bills and property damage, depending on your policy.

How can I tell if my claim is covered under my policy? Review your policy details to see what’s covered. Contact your insurer for clarification. They’ll assess your claim and let you know if it’s eligible for coverage.

What is the claims process like with an insurance company? The process typically involves reporting the claim, providing necessary documentation, an adjuster reviewing the damage, and the insurer determining how much to pay. You may be responsible for paying your deductible.

Does my car insurance cover a hit-and-run accident? If you have uninsured motorist coverage, it may cover your damages from a hit-and-run accident, depending on the specifics of the policy.

What should I do if the other driver in the accident doesn’t have insurance? If the other driver doesn’t have insurance, you can file a claim with your own uninsured motorist coverage. If you don’t have it, you may need to pursue the driver personally or pay out of pocket.

How does my deductible affect my claim payout? Your deductible is the amount you pay before the insurer covers the rest of the claim. For example, if your car damage costs $2,000 and you have a $500 deductible, the insurer will pay $1,500.

How long does it take to settle an insurance claim? The time to settle a claim varies, but most claims are resolved within a few weeks. More complex claims may take longer due to investigation or negotiations.

What happens if my car is totaled in an accident? If your car is totaled, your insurance will typically pay you its current market value, minus your deductible. If you have gap insurance, it will cover the difference between what you owe and the car’s value.

Will my insurance company cover my car’s repair costs if I’m at fault? If you have collision coverage, your insurer will cover your repair costs, minus your deductible, even if you’re at fault in the accident.

Do I need to report an accident to my insurer even if it’s minor? Yes, it’s best to report even minor accidents to your insurer to ensure you’re covered, especially if damage is discovered later.

What is the role of an adjuster in an insurance claim? An adjuster evaluates the damage to your car, investigates the accident details, and determines how much your insurer should pay for repairs or replacement.

---

Types of Insurance & Policies

What is “full coverage” insurance? Full coverage insurance generally refers to a policy that includes liability, collision, and comprehensive coverage, providing broader protection than the minimum required by law.

What is the difference between personal and commercial auto insurance? Personal auto insurance covers private vehicles for personal use. Commercial auto insurance covers vehicles used for business purposes, such as delivery vans or company cars.

Do I need separate insurance for a second car? Yes, you need separate insurance for each vehicle unless they’re both covered under a multi-car policy with the same insurer.

What is a non-owner car insurance policy? A non-owner car insurance policy provides liability coverage for drivers who don’t own a car but occasionally drive someone else’s vehicle.

What is the difference between third-party insurance and first-party insurance?

• • Third-party insurance covers damages you cause to others (the third party).

• • First-party insurance covers damages to your own vehicle or injuries.

What is high-risk auto insurance? High-risk auto insurance is for drivers considered to be higher risk due to factors like a poor driving record or limited driving history.

What is liability-only car insurance? Liability-only insurance covers damages and injuries you cause to others but does not cover damages to your own vehicle.

What is umbrella insurance, and do I need it with auto insurance? Umbrella insurance provides additional liability coverage beyond the limits of your auto (and other) insurance policies, offering extra protection for serious accidents.

Do I need insurance if I only drive occasionally? Yes, even occasional drivers need insurance, as driving without it is illegal in most places. You can adjust your coverage based on usage.

Can I insure a car that is not registered in my name? It’s possible, but some insurers may require you to be the registered owner to insure the vehicle.

---

Special Situations

Does auto insurance cover damage caused by weather? Yes, comprehensive coverage typically covers weather-related damage, such as hail, floods, and storms. However, if you only have liability coverage, weather-related damage may not be covered.

What happens if I lend my car to someone who gets into an accident? If you lend your car to someone, your insurance is usually the primary coverage. If the person driving causes an accident, your liability insurance should cover the damages. However, if they have their own insurance, it may act as secondary coverage.

Does auto insurance cover driving for work purposes? Personal auto insurance typically doesn’t cover driving for work purposes, such as for business errands or using the car for delivery. If you use your car for work, you may need a commercial auto policy.

Can I insure a car that’s not drivable? You can insure a non-drivable car, but it typically requires comprehensive coverage to protect against damage while it is not being driven (e.g., theft, vandalism). You may need to have the car repaired before it can be insured for collision damage.

Is auto insurance required for leased vehicles? Yes, most leasing companies require you to have auto insurance with comprehensive and collision coverage, in addition to the required liability insurance.

Can I buy auto insurance for a car that I’m not driving? Yes, you can insure a car that you’re not driving, as long as you own it or are legally responsible for it. You may need to have a specific policy, such as a storage policy, if you don’t plan to drive the vehicle.

Can my auto insurance policy be transferred to someone else? Generally, auto insurance policies are not transferable. However, if you’re selling the car to someone else, they would need to get their own policy before taking ownership.

Does auto insurance cover rideshare driving (e.g., Uber, Lyft)? Standard auto insurance usually doesn’t cover rideshare driving. However, some insurers offer specialized rideshare coverage that fills the gap between personal auto insurance and the coverage provided by rideshare companies during the time you’re driving for them.

Does auto insurance cover a car used in racing or other sports? No, auto insurance typically does not cover damage or accidents that happen while using your car in racing, track events, or other high-risk activities. Special insurance for racing or motorsports is usually required.

What if my car is damaged while parked? If your car is damaged while parked, your insurance may cover the repair costs, depending on your coverage. If you have comprehensive coverage, it would cover damage caused by vandalism, weather, or another driver who leaves the scene.

---

Coverage for Specific Vehicles

Does auto insurance cover classic cars or antique vehicles? Yes, but classic and antique cars often require specialized coverage. Classic car insurance is typically based on the car’s value rather than the actual cash value or market value.

Can I insure an electric or hybrid car? Yes, electric and hybrid cars can be insured just like traditional vehicles. Some insurers may even offer discounts for eco-friendly cars or those with advanced safety features.

Is there insurance for motorcycles and scooters? Yes, there is insurance for motorcycles and scooters. It typically includes liability coverage, and you can add collision, comprehensive, and medical payments coverage as well.

Does my insurance cover a trailer or camper attached to my vehicle? Yes, auto insurance can cover a trailer or camper attached to your vehicle, but you’ll need to ensure your policy includes coverage for these items. You may need additional coverage depending on the value and type of trailer or camper.

What kind of insurance is needed for a recreational vehicle (RV)? RV insurance is required for most motorized recreational vehicles, and it provides coverage similar to auto insurance. Coverage typically includes liability, collision, and comprehensive protection. There may also be specialized coverage for personal belongings and equipment inside the RV.

Do I need special insurance for a convertible or sports car? Typically, you don’t need special insurance just because your car is a convertible or sports car. However, because these cars may have higher values or be more prone to accidents, they could have higher premiums.

What is non-standard auto insurance for high-risk drivers? Non-standard auto insurance is designed for high-risk drivers, such as those with poor driving records, multiple accidents, or DUIs. This coverage can be more expensive and may be offered through specialized insurers.

Can I add a teen driver to my auto insurance policy? Yes, you can add a teen driver to your policy. Keep in mind that adding a teen driver may raise your premium, but many insurers offer discounts for good students, safety courses, or if the teen drives safely.

Does auto insurance cover golf carts or ATVs? Standard auto insurance does not cover golf carts or ATVs, but specialized coverage can be purchased for these vehicles. Many states have specific insurance requirements for ATVs, depending on where they are used.

How do I insure a new car? To insure a new car, you can contact your insurer and add the vehicle to your policy. Make sure to review your coverage options, including comprehensive and collision coverage, especially if you have a loan or lease. Your insurer will need details such as the vehicle identification number (VIN), model, and year of the car.