Auto Insurance FAQs

Get answers to your most common insurance questions

Coverage Questions

What is the minimum car insurance required by law?

Minimum requirements vary by state, but most require liability insurance covering bodily injury and property damage. Common minimums are 25/50/25 or 15/30/10 (in thousands). Some states also require uninsured motorist coverage or personal injury protection (PIP). Check your state's specific requirements.

What's the difference between comprehensive and collision coverage?

Collision: Covers damage to your car from collisions with other vehicles or objects, regardless of fault.

Comprehensive: Covers damage from non-collision events like theft, vandalism, weather, fire, and animal strikes.

Both are optional but required by lenders for financed vehicles.

Do I need full coverage insurance?

"Full coverage" typically means liability + comprehensive + collision. You need it if you:

  • Have a car loan or lease (lender requirement)
  • Own a newer or valuable vehicle
  • Cannot afford to replace your car out-of-pocket

For older vehicles worth less than $3,000-$4,000, liability-only may make sense.

What is uninsured motorist coverage and do I need it?

Uninsured motorist (UM) coverage protects you when hit by a driver with no insurance or insufficient coverage. With approximately 1 in 8 drivers uninsured nationwide, UM coverage is highly recommended. It's required in many states and typically costs very little to add.

Pricing & Discounts

How much does car insurance cost?

Average annual premiums in the U.S. range from $1,200 to $2,400, but costs vary significantly based on:

  • Your age, driving record, and credit score
  • Vehicle make, model, and year
  • Coverage levels and deductibles
  • Where you live (state and ZIP code)
  • Annual mileage

The best way to find accurate pricing is to compare quotes.

Why is my car insurance so expensive?

High premiums usually result from:

  • Young age (under 25) or senior age (over 70)
  • Recent accidents or traffic violations
  • Poor credit score
  • High-performance or luxury vehicle
  • Living in high-risk area
  • Limited driving history

Shop around and ask about discounts to lower your rate.

How can I lower my insurance premium?

Try these strategies:

  • Compare quotes from multiple insurers
  • Increase your deductible
  • Ask about all available discounts
  • Bundle policies (auto + home)
  • Maintain a clean driving record
  • Improve your credit score
  • Consider usage-based insurance
  • Take a defensive driving course

Does my credit score affect my car insurance rate?

In most states, yes. Insurers use credit-based insurance scores to help predict risk. Better credit typically means lower rates. However, California, Hawaii, Massachusetts, and Michigan prohibit or limit the use of credit scores for auto insurance pricing.

Claims & Coverage Use

What should I do after a car accident?

  1. Check for injuries and call 911 if needed
  2. Move to safety if vehicles are drivable
  3. Call police to file a report
  4. Exchange information with other driver(s)
  5. Document the scene with photos
  6. Notify your insurer as soon as possible
  7. Get medical attention even if you feel fine

Will my insurance go up if I file a claim?

It depends on the type and circumstances:

  • At-fault accident: Usually increases rates (avg. 20-40%)
  • Comprehensive claim: May cause small increase or none
  • Not-at-fault accident: Shouldn't increase in theory, but varies by insurer
  • Small claims: Sometimes better to pay out-of-pocket if close to deductible

Accident forgiveness programs can prevent rate increases for first accident.

Does car insurance cover rental cars?

Your auto insurance may extend to rentals, but coverage varies:

  • Liability usually transfers to rental cars
  • Comprehensive and collision may cover rentals (check your policy)
  • Credit cards may offer rental coverage
  • Rental companies offer their own insurance (often expensive)

Call your insurer before renting to confirm coverage.

Am I covered if someone else drives my car?

Generally, yes. Auto insurance typically follows the car, not the driver. If someone drives your car with your permission:

  • Your insurance is primary coverage
  • Driver's insurance may provide secondary coverage
  • You're responsible for any claim
  • Your rates could increase if they have an accident

Regular use by another person should be disclosed to your insurer.

Policy Management

How often should I shop for car insurance?

Compare quotes at least once a year, and especially when:

  • Your policy is up for renewal
  • You've had a major life change (moved, married, new car)
  • Your rate increased significantly
  • You've maintained a clean record for 3+ years
  • Your vehicle is paid off

Insurance rates change frequently - shopping around can save hundreds.

Can I cancel my car insurance anytime?

Yes, you can cancel at any time, but consider:

  • You'll get a pro-rated refund for unused premiums
  • Some insurers charge cancellation fees
  • Never cancel before new policy starts (creates coverage gap)
  • Coverage gaps can increase future rates
  • Provide proper notice (typically 30 days)

What happens if I let my car insurance lapse?

A lapse in coverage can cause serious problems:

  • Significantly higher rates when you reinsure
  • License suspension in many states
  • Vehicle registration suspension
  • SR-22 requirement in some states
  • Difficulty getting coverage later

Always maintain continuous coverage, even if you don't drive regularly.

Do I need insurance if I don't drive my car?

It depends:

  • Stored vehicle: You can drop liability/collision but keep comprehensive
  • Financed vehicle: Lender requires full coverage
  • Registered vehicle: Most states require insurance regardless
  • Suspension option: Some insurers offer storage/layup policies

Letting insurance lapse can increase future rates, so consider minimal coverage.

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