Q: Is anyone who drives my car covered?
A: As long as they have permission, in most cases the answer is yes. It’s important to look at your particular insurance policy as there are some exclusions. Everyone in your household must be listed on your insurance policy in order to be covered.
Q: What happens if I still drive my car after choosing not to buy car insurance?
A: Varies by state. All states have laws regarding car insurance requirements, and driving without car insurance will result in fines and penalties in most states.
Q: What are the minimum car insurance requirements?
A: Liability coverage is required in every state unless proof of financial responsibility is otherwise shown. The dollar amount required for liability coverage varies from state to state. Some states require other forms of coverage such as Personal Injury Protection or Uninsured/Underinsured Motorist coverage.
Q: What is the difference in coverage between comprehensive and collision?
A: Collision coverage takes effect in the event of having a collision with something, like another car. Comprehensive coverage takes effect when the damage is caused by anything other than a collision, such as theft or fire.
Q: What effect does my driving record have on my insurance premium?
A: The cost associated with your premium is determined by your driving record. Your premium is a direct reflection of the past three to five years of your driving record.
Q: What is no-fault insurance?
A: A no-fault insurance system means that your insurance covers expenses in an accident regardless of who was at fault, as long as the event is covered. Many states have implemented No Fault Coverage, which is a hybrid policy that is only applicable to injuries sustained in an auto accident for first party medical coverage.
Q: What are the “no-fault” states?
A: These include 12 states, as well as Puerto Rico. States with verbal thresholds: Florida, Pennsylvania, Michigan, New York, and New Jersey. States with monetary thresholds: Hawaii, Utah, Kansas, North Dakota, Kentucky, Minnesota, and Massachusetts.
Q: Why does insurance cost more for red cars?
A: This is actually a myth. Red cars do not cost more to insure.
Q: What is a deductible?
A: The portion of a claim that a policyholder must pay before the insurance company pays is called the deductible. Higher deductibles result in lower coverage costs.
Q: What is a restricted policy?
A: This means that coverage on your policy is restricted to the individuals who are specifically listed on your policy.
Q: What is full coverage?
A: This term describes the amount of auto insurance coverage on someone’s policy. The term generally means that there is more than just Liability coverage on the policy and usually includes collision and comprehensive coverage.
Q: What is property coverage?
A: This coverage pays for damage to your vehicle or theft of your vehicle.
Q: What is liability coverage?
A: This coverage pays for the legal responsibility you have to others in the event of causing property damage or bodily injury.
Q: What is medical coverage?
A: This coverage pays for medical costs such as treating injuries, rehabilitation, and possibly lost wages and funeral expenses.
Q: Can an insurer cancel or refuse to renew my auto insurance policy?
A: The insurer has the right to cancel your policy for any reason within 60 days of the policy taking effect. After 60 days, the cancellation can only take effect after failure to pay your deductible or if you lied on your application/committed fraud. As far as policy renewal, the insurer can make the decision to not renew your auto insurance once the term has expired.