100 Most Frequently Asked Questions for Car Insurance Shoppers
Most drivers shopping for a new auto insurance policy aren't experts. They only know limited facts about car insurance. It may help them buy a policy; however, it may not be an affordable one or provide them enough coverage. In this article, you'll learn about several common questions that Americans have.
Table of Contents
- General Auto Insurance Questions
- Liability insurance
- Full Coverage Auto Insurance Basics
- Collision and Comprehensive
- Situations Covered by Collision and Comprehensive
- Medical Payments/Personal Injury Protection
- Gap Coverage
- Shopping for Auto Insurance
- Canceling and Reinstating a Policy
- Age and Marriage-Related Auto Questions
- Accidents and Claims
- Rental Insurance
- Legal Questions
- Miscellaneous Questions
I. General Insurance Questions
1. What Is Auto Insurance?
Auto insurance is a contract between the insured and an insurance company. If the insured suffers a covered loss, the insurance company will help pay for expenses. Carriers bill for coverage using monthly premiums.
Customers can also pay using semi-annual and annual lump sums. If you get into an accident that is your fault, you first pay a deductible, or set amount of your choosing, before your insurance covers most if not all that remains on the balance owed.
Every person pays a different rate to be insured. For a detailed article on what auto coverage is, visit here.
2. How Does Auto Insurance Work?
To drive legally, you must carry your state's minimum required coverage. Nearly every state requires liability property and casualty insurance, and many require more.
In no-fault states, like Michigan, you must have additional coverage, usually PIP insurance, which covers damages and injuries regardless of who is at fault.
Most states require liability insurance at a minimum, but liability coverage only protects you against the other party if the accident is your fault.
You need to buy additional insurance to cover damages to your own car in case you have an accident that is your fault.
You also need more insurance if you owe extra money on your car loan than what your car is worth. Otherwise, you'll still carry a remaining balance if your car is declared a total loss and you're paid out by your carrier.
3. What Do Auto Insurance Policies Cover?
The answer to this question depends largely on which coverages you buy.
If you only have the state minimum, you're only protecting the other party if you're at fault. In that case, the expense of repairing the other driver's car and taking care of medical costs will be your insurer's responsibility.
Some carriers will also cover death benefits. If you buy collision coverage, your car will be repaired at no cost to you. If you buy comprehensive and your car is stolen, you will be paid the value of the car. If you do not have collision and comprehensive, you'd be on your own to pay for your own losses.
If you're searching for an affordable policy to fit your needs, SmartFinancial can help. Our insurance comparison service will help you find one that's best for you. Just enter your zip code on this page to get started.
4. How Does Car Insurance Help Me?
For one thing, you won't get into legal trouble. If you're uninsured and get pulled over or, worse yet, find yourself involved in an accident, you'll pay a hefty fine on top of the legal troubles you'll need to sort out.
Also, without insurance, you're on your own to pay for very expensive damages to another person's car if you're at fault. You'll also have to pay for your own repairs. Car insurance was designed to help with the financial impact of an accident.
5. How Many Types of Auto Insurance Are There?
The Insurance Information Institute states there are several different coverages:
- Bodily Injury Liability Coverage (BI) – This coverage pays for the medical payments of another person when they suffer injuries in an accident you caused.
- Property Damage Liability Coverage (PD) – These pay for damages that you cause to other people and their property.
- Personal Injury Protection (PIP) – It covers medical expenses and lost wages regardless of fault. PIP only pays up for healthcare care up to the policy limit.
- Medical Payments (MedPay) – This coverage pays for medical expenses, lost wages and funeral expenses.
- Collision – It pays for damages to your car during a collision.
- Comprehensive – It pays for damage done to your car in a non-collision event (theft, vandalism)
- Uninsured and Underinsured Motorist (UM/UIM) Coverage – It protects you during an accident with an at-fault driver that doesn't have enough insurance. This coverage only pays up to the policy limit.
- Gap Insurance – it pays the difference between what your car is worth and what your insurance company will pay you when your car is totaled or stolen. It will cover what you still owe on it.
Some carriers create their own coverage terms as well, such as New Car Replacement.
6. Do All States Require Auto Insurance?
Most if not all states require that drivers carry the minimum liability coverage. Some areas require higher levels than others. In no-fault states, you are required to carry Personal Injury Protection (PIP) insurance.
7. When Do I Need to Get Auto Insurance?
It's illegal to drive a car that is uninsured no matter what. If you have a car that is not insured, it's important to buy coverage now.
8. What Auto Insurance Do I Need?
In most cases, if you're still paying off a car, you'll be required by the lien holder to carry full coverage. If you own your car, you have the option of buying more than the state-required minimum liability coverage (and PIP if you live in a no-fault state).
How much auto coverage you need depends on the value of your car and whether or not you're able to cover your own losses if you're in an accident. There is also such a thing as carrying too much car insurance.
You can learn how to determine how much insurance you need. Remember that liability only covers the other party if you're responsible. It's a good idea to compare insurance rates after you decide how much insurance you need. You can also speak with one of your local agents to find out how much coverage to buy.
9. Who Is Covered Under My Auto Insurance?
A car insurance policy usually follows the car, not the driver. This means that if you allow someone to use your car, they are covered unless they are excluded from the policy.
10. What Is an Auto Insurance Premium?
Your auto insurance premium is the amount you pay each month to keep your insurance active.
11. What Is an Auto Insurance Card?
An auto insurance card is the same thing as an insurance ID card. You must always carry this card with you when you are driving. This card shows:
- The policy number
- Policy effective dates
You can also show proof using a digital auto insurance card if your provider has an app.
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II. Liability Insurance
12. What Is Standard Auto Insurance?
Standard auto insurance usually refers to the state minimum. In most locations, liability insurance is standard coverage. Note that liability insurance only covers the other party if you caused an accident.
13. What Is Bodily Injury Liability Coverage on Auto Insurance?
Bodily injury liability covers the cost of the other driver and all pedestrians and passengers' injuries in an accident for which you are found to be responsible. It is one of two types of liability auto insurance. The other covers damages to your property.
14. What Does Property Damage Liability Auto Insurance Cover?
Property damage helps pay to repair the damage you cause to another person's vehicle or property if you are responsible for an accident. It will also cover repairs to public property.
15. How Much Auto Liability Insurance Do I Need?
Minimum auto liability insurance limits vary by state. However, most minimums are not enough if there is a bad accident with lots of damage and medical expenses. A general rule of thumb in determining how much liability insurance you need is to cover your assets, like a home and other valuable things you own. Compare car insurance rates to get the best deal.
III. Full Coverage Auto Insurance Basics
16. What Is Considered Full Coverage Auto Insurance
You have full coverage if you have collision and comprehensive to protect your own losses, not just the other driver's.
17. How Much Is Full Coverage Auto Insurance?
The average full-coverage car insurance rate is about $1400 a year. However, your rate will vary from this amount according to many factors, which include the value of your car, your marital status, the garaging address and others.
18. When Should I Drop Full Coverage Auto Insurance?
You have the option of shedding your current coverages down to standard insurance coverage after you pay off a car and the title belongs to you. However, if you have the state minimum, you will not be covered for damages to your car if you are responsible for an accident.
You are only covered for that if you have collision coverage. You will also not be covered for theft or vandalism without comprehensive. To see if you can keep full coverage but pay less, compare auto insurance rates.
IV. Collision and Comprehensive
19. What Is Collision Insurance?
Collision insurance pays for damages and loss caused by impact with another automobile, object or person. It is subject to a deductible of your choosing.
Like comprehensive coverage, the higher the deductible, the lower your premiums and vice versa. It, too, is not required by law but is usually required if you lease or finance a vehicle.
If you have a collision with another moving vehicle and it was your fault, your liability insurance covers the other party, that driver's vehicle and passengers while your collision coverage will cover you, your vehicle and your passengers.
The same goes for hitting a parked car, utility pole or street sign. Your collision takes care of you. Liability insurance will never take care of damages to you or your vehicle and passengers.
It's intended to cover your liability for harming the other party in terms of losses. Just as with comprehensive insurance, you can choose a deductible for your collision coverage.
The deductible usually ranges between $250 and $1,000 for each accident. Keep in mind that your collision insurance will not pay out for damages until you have paid the deductible amount towards your losses first. Choose a deductible that you'll be able to afford.
20. What Does Comprehensive Car Insurance Cover?
Many people wrongly assume that having comprehensive insurance means you are covered for "everything" after you have an accident.
Comprehensive insurance covers you if your vehicle is stolen or vandalized or if it is damaged as a result of anything other than a collision.
Other perils that are covered by comprehensive insurance include storms and other natural disasters, broken windows and windshield and damage caused by animals and falling objects.
21. When Should You Drop Comprehensive and Collision Auto Insurance?
You should remember that comprehensive and collision will pay out the value of the car at most. Are you paying hundreds of dollars for these coverages every year? If your car is worth a thousand dollars, it makes no sense to pay dozens of dollars a month on comprehensive and collision. You'd still have to pay a deductible to get that amount paid out if you total the car or if it gets stolen. Deductibles can cost $500 or $1000. The math makes no sense.
V. Situations Covered by Collision and Comprehensive Insurance
22. Does Auto Insurance Cover Scratches?
If you have comprehensive insurance, scratches are covered if they resulted from vandalism. Collision coverage would cover the scratches when you have car receives scratches resulting from an accident.
23. What Type of Auto Insurance Covers Hitting a Deer?
In almost all cases comprehensive insurance would cover hitting a deer; however, there have been instances where collision insurance covered it.
24. Does Auto Insurance Cover Lightning Strikes?
If your car is damaged as a result of lightning strikes you are covered when your policy has comprehensive insurance.
25. Does Auto Insurance Cover Theft?
Comprehensive insurance covers car theft.
26. Is Hail Damage Covered Under Auto Insurance?
If you have comprehensive coverage on your insurance policy, you are covered for hail damage.
27. Does Comprehensive Auto Insurance Cover Rodent Damage?
If a rodent damages your car, you are covered if you have comprehensive coverage.
28. Will An Auto Policy Cover Storm Damage?
Comprehensive coverage usually covers storm damage, so you may be in luck if you have this optional coverage. If not, compare rates with comprehensive coverage.
29. Does Homeowners Insurance Cover Auto Theft?
No. Your homeowners insurance policy does not cover auto theft. If a thief steals your car, you are only covered by comprehensive insurance, and you need to file a report with the police to submit a comprehensive insurance claim. If your possessions are stolen out of your car, homeowners insurance or renters insurance would cover those items. For details about homeowners insurance, read this article.
30. Does it Provide Coverage for Broken Windows?
If you have comprehensive coverage, you may be covered for a broken windshield and/or broken windows. Only comprehensive insurance covers vandalism. Some policies will cover windows but not the windshield. Also, if the windows broke as a result of an accident, you will only be covered by collision coverage.
31. Does Auto Insurance Pay for Mechanical Repairs?
Most repairs due to wear-and-tear are not covered by auto insurance; however, repairs resulting from vandalism or a car accident may be covered. If you're at fault in the accident, you will only be covered if you have collision coverage. For vandalism, you need comprehensive coverage.
VI. Medical Payments/Personal Injury Protection
32. What Is Medpay?
MedPay is short for Medical Payments, usually an optional auto coverage, which pays for medical costs in a covered claim.
33. What Is Personal Injury Protection?
Personal Injury Protection (PIP) is known as a "no-fault insurance" and covers accident-related healthcare expenses. It pays for medical expenses for both injured policyholders and their passengers, regardless if they have health insurance. This policy will pay for medical expenses up to the policy limit.
34. What Does Medical Coverage on a Policy Cover?
Medical Coverage on an auto policy may help pay your or your passengers' medical expenses if you're injured in an auto accident, regardless of who caused it. Also called MedPay, this insurance is required in some states but is optional in others.
35. Does Auto Insurance Pay Off Medical Bills?
If you caused an accident, your liability insurance will begin to cover medical bills for the other driver and his/her passengers. Policy limits are sometimes insufficient, so it's a good idea to buy liability at higher limits. Compare car insurance rates to pay the least amount for the coverage and policy limits you need to protect yourself.
36. Who Pays First, Auto Insurance or Health Insurance?
If you have MedPay or Medical Coverage on your policy, it's highly advised that you use this first before using your health insurance. There's no deductible for medical coverage on auto insurance and if you use your health insurance first, they may negotiate to be paid back by MedPay anyway.
37. Will Health Insurance Cover a Car Accident?
If you have Medical Payments, it's the primary form of insurance for injuries related to an auto accident. Health insurance is secondary.
VII. Gap Coverage
38. What Is Auto Gap Insurance?
Often, when people buy a car, they owe more in loans than the car is worth. For instance, your car's Kelley Blue Book value may be $10,000 but you owe $15,000 in loans.
It is a problem if you find yourself in an accident, you are at a $5000 loss, because coverage never exceeds the value of the car. If this is the case, you can buy auto gap insurance, and it will pay the remaining $5,000 of your loss.
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VIII. Shopping for Auto Insurance
39. How to Shop for Auto Insurance
You can use an insurance comparison service to shop for insurance. When you shop auto insurance rates, you fill out a 3-minute survey.
40. How Can I Buy Auto Insurance?
The best way to buy auto insurance is to compare quotes for the best rate for the best coverage.
41. How Much Car Insurance Do I Need?
How much coverage you require depends on a few factors. First, if you're leasing or financing a car you may be required to have full insurance.
Each state has different insurance requirements so it's important to check with your local DMV. However, nearly all states require liability insurance at the very least, if your car is paid off.
Also, you don't want to over-insure a car that is worth very little. For details on how much car insurance to buy, visit here.
42. What Is an Auto Insurance Quote?
An auto insurance quote is a price estimate for what you'd pay to have car insurance coverage based on the information you give to an agent. You can also get a quote by using a free online comparison search engine.
43. How Much Is Auto Insurance?
Everybody's rates are different according to several factors, but it's also important to shop car insurance rates with a trusted source to find out what different carriers are offering you.
People who compare auto insurance quotes save hundreds, if not thousands, of dollars a year. Factors include but are not limited to marital status, garaging address and driving record. Some areas rate you based on credit score.
44. What Auto Insurance Doesn't Credit Check?
Not all states allow credit checks for insurance. In California, Hawaii, and Massachusetts for example, credit checks are not used to determine risk. In most states, it is used and most insurance companies will run a credit check on you.
45. Can You Get Auto Insurance Without a License?
You need a valid driver's license to buy auto insurance. As you can imagine, an insurance company would feel uneasy covering a car for someone who doesn't have a license.
46. How to Choose Different Auto Insurance Coverage Amounts
Different people have different coverage needs and need to buy different car insurance products. If you are still making payments on a car you likely need full insurance. Otherwise, you can pick and choose your car insurance policy.
47. Can You Pay Auto Insurance with a Credit Card?
Yes, you can pay your auto insurance premiums with a credit card.
48. Why Is My Auto Insurance So High?
If you're a new driver, you will be paying the highest rates. If you've had a DUI or an accident or several accidents, your insurance rate will also be higher.
49. Why Do Auto Insurance Rates Increase?
Your auto insurance rate may increase due to many reasons which include car accidents, moving violations, a lapse in coverage, a new job, a change in marital status and others.
50. Who Typically Has the Highest Auto Insurance Premiums?
New drivers have the highest auto insurance premiums. Also people with multiple DUI offenses have incredibly high insurance premiums. Driving without insurance can also drive up your rates. It's important to get car insurance from reputable agents.
51. Who Has the Cheapest Insurance?
It's important to compare car insurance quotes because they are determined by many factors. No two rates are the same because different drivers have different life circumstances. You may also be eligible for certain discounts other drivers are not.
52. What Is the Best and Cheapest Auto Insurance?
Because different insurers rate individuals differently, it's hard to say who is the "best" or "cheapest." To find out which carrier will give you the best and lowest rates, compare auto insurance quotes.
53. How Can I Get Cheap Auto Insurance?
To find the lowest auto insurance for you fill out a form here to compare auto insurance rates.
54. Who Is the #1 Auto Insurance Company?
The answer to this is also complicated. One insurance company may offer you better rates than another. If by #1 you mean to ask which is the largest car insurance company, the answer is State Farm. You can compare State Farm's rates against other carriers to see which will offer you the best coverage at the best rate.
55. What Is the Best Auto Insurance Company?
Car insurance is not a one-size-fits-all type of product. There are many factors that determine what is best for you and your car. It also helps to speak with a knowledgeable agent, who may be able to tell you how much coverage you need if you feel confused.
56. What Is the Best Insurance Company for Home and Auto?
Several insurance companies offer bundle discounts to cover home and auto. One company will offer you a better rate than another based on several factors. It's always a good idea to compare insurance rates to see which company will offer the most savings.
57. What Is a Good Auto Insurance Score?
Auto insurance scores usually range between 200 and 997. A good score is around 770 and higher.
58. What Is the Best Auto Insurance Score?
The best auto insurance score is 900. It is the highest one you can get.
59. How to Save on Automobile Insurance
When you compare auto insurance quotes, you usually get the best deal. See if you are eligible for discounts and bundle your home and auto or your renters and auto. If you have business insurance, see if you can get a good deal by bundling that too.
60. What Is a Declarations Page?
The declarations page on an auto insurance policy states which coverages and limits you have. The declaration page is usually the front page or one of the first pages of your policy and is located inside the policy jacket.
The declaration page specifies the named insured, address, policy period, location of premises, coverage terms and policy limits.
When you buy car insurance from a new insurer, the most important thing you can do is to look through the coverages listed on the declaration page.
Make sure there are no mistakes with your name and Vehicle Identification Number (VIN). Your declaration page will also list other vital pieces of data so make sure everything is accurate.
61. How Can I Lower My Auto Insurance Costs?
Several factors affect your auto insurance rate. For instance, get married and your rate will drop. Move to a safer neighborhood, find a stable type of job and improve your credit score for additional savings. Even then, it's important to compare insurance rates to get the best one.
62. How to Switch Auto Insurance
The best way to switch auto insurance is to find out when you can cancel without a penalty. Sometimes, the switch can still offset the penalty charge, however, Next, compare car insurance rates. Never drop your current insurance without having a new one instated.
63. How Much Is Commercial Auto Insurance?
Rates for commercial auto insurance vary according to several factors, which include the type of use and the value of the insured car(s). On average businesses spend $900 to $1200 for commercial auto insurance coverage. You can save money on costs if you compare commercial auto insurance rates.
64. Which Insurance Companies Offer 12-month Policies?
Many providers offer 12-month policies. Most, however, renew every six months. After you fill out a brief form, you will be connected with a licensed agent. If you're specifically looking for an insurer for a 12-month policy, let them know. Rates do not necessarily go up more with six-month policies.
IX. Canceling and Reinstating Auto Insurance
65. Can I Cancel My Policy at Any Time?
You should only cancel your auto insurance after finding another auto insurance company. A lapse of insurance can raise your rates dramatically.
66. How Can I Cancel My Auto Insurance?
Each insurer has a different cancellation policy. Contact your local agency to find out if there are any penalties if you cancel outside your coverage term.
67. How Can I Reinstate Canceled Auto Insurance?
When you reinstate canceled auto insurance, you're reactivating the same insurance policy you had previously. To do this, you'll need to contact the insurance company.
If there was no lapse in the coverage, that's better. Otherwise, your policy will show a gap and may likely raise your rate. If your policy has been inactive for 30 days or more, you may have a hard time reinstating your policy.
Regardless of whether or not you can reinstate a previous policy or not, it's a good idea to compare rates to see if you can pay less.
X. Age and Marriage-Related Auto Insurance Questions
66. How Long Can My Child Stay on My Auto Insurance?
There's no cutoff age with auto insurance. As long as your child lives in the same house as you, you can continue to keep your child on your policy.
67. What Is the Best Auto Insurance for Teenage Drivers?
The answer to this is not clear-cut because many different factors determine an auto insurance rate. One insurance company may offer you better rates than they would to someone with a similar profile. It's always a good idea to compare several insurance companies' rates. Also, see if your teen qualifies for a good student discount.
68. What Is the Best Auto Insurance for Seniors?
There are many companies that offer lower rates for seniors or big discounts to offset costs. It's important to compare auto insurance options side by side with a reputable agent to see which offers more coverage for less money.
69. Does Automobile Insurance Go Down When You Retire?
No, age 65 and up, rates usually increase.
70. Do Premiums Increase with Age?
When you first start driving you have the highest premiums due to inexperience with driving. Your rates will drop and be at their lowest between ages 30 and 65. You'll then see an increase in premium rates.
71. Does Being Married Driver Affect Insurance?
Yes, marital status affects insurance. Married people are seen as lower-risk drivers. If you haven't gotten a car insurance quote since you got married, it's time to see if you can save on car insurance.
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XI. Accidents and Claims
72. How Can I File an Insurance Claim?
It's important to contact your insurance agent after you file a police report, whether the accident is your fault or not. It's also important to gather information, like the other driver's name, the policy number and the insurance company. Give as much information as you can to your agent.
73. How Many Claims Per Year Are You Allowed?
There is no limit to the number of claims you file, but your insurance company can refuse to renew you. If they do this, you will have a hard time finding another carrier. To save money, find the lowest car insurance rate but don't file unnecessary claims you can take care of on your own.
74. Does Your Rate Go Up After a Claim?
In most cases, your rate will go up after you file a claim and you will have to pay a deductible before you're covered. This is why it's important to fully consider whether or not you should file a claim.
75. How Long Does an Auto Claim Take?
The answer to this varies by state. For instance, in California, the claim must be acknowledged within 15 days and must be determined within 40 days. On average, it takes about 30 days to resolve most claims.
76. What Is a Deductible?
The deductible is the amount you're responsible to pay before the insurance company begins to pay for your losses.
77. Can You Backdate Auto Insurance After an Accident?
Backdating auto insurance is a fraudulent activity. Most insurance companies in good standing will never do it.
78. How Long Does an Auto Accident Stay on Your Insurance?
Insurance companies usually look at driving records for the past three to five years. However, how long the accident stays on record depends on the severity of the accident and your state's policies. Some states, like New York, have lifetime records. But the average range for how long an accident will stay on your record is 3 to 13 years.
79. Can Auto Insurance Refuse to Pay an Insured Driver?
If you file a claim that is denied, you can fight for an appeal. To do this, you'll need to understand why it was denied. You'll also probably need to gather more evidence to back up the legitimacy of your claim.
80. How to Find Someone's Auto Insurance Information
If you are in a car accident, it's essential that you exchange information with each other. The other party needs to surrender their auto insurance details. If they do not, it's important to take down their license plate number. The police will be able to call up all the necessary information based on the license plate number.
81. How to File an Auto Claim Against Someone
If you're in an accident, you should always exchange insurance information with the other driver. There should also be a police report explaining what happened. Call your insurance company as soon as you can, after exchanging information and speaking with the police. If the accident was their responsibility, tell your insurance agent what happened. The insurer will file the claim against the other driver.
82. How to Fight an Insurance Claim
Your insurance carrier will fight a claim on your behalf if one is filed against you by the other party but you were not responsible for the accident. Police reports will also be investigated. However, if your claim is denied, you can fight for an appeal. To do this, you'll need to understand why it was denied. You'll also probably need to gather more evidence to back up the legitimacy of your claim.
83. How to Maximize a Claim
The most important way to maximize an auto insurance claim is to follow the rules. This means staying at the scene of the accident, answering police questions, getting a copy of the accident report, taking the other driver's insurance information, speaking with witnesses and gathering everyone's information. After doing all this, contact your insurance agent for help.
84. When Not to File a Claim
Use your common sense. Know that when you make a claim your rate goes up. So, file one if the expense is one you cannot handle. For one thing, you'll have to pay the deductible before you're covered. Ask yourself if it's worth it. If you have a $200 expense, for example, it'll most likely be less expensive than your deductible, so it's a good idea to just pay out-of-pocket.
85. Can the Insurance Company Deny a Claim?
If you are driving illegally or breaking state or federal law, your claim may be denied. Or, the damages you are claiming may be disputed.
86. Can I Switch Insurance with an Open Claim?
You can switch insurance companies after you file the claim. It's fine to have an open claim. However, you can not file a claim after you've switched insurers.
87. Which Insurers Cover OEM Parts?
Some insurers don't offer OEM parts but that does not mean you have to go with aftermarket parts. If OEM is important to you, you can pay the difference between the price of the two options. Or, you use our free comparison service to learn which carriers and policies cover these parts.
88. Is Auto Insurance Tax Deductible?
Your car insurance premium is tax-exempt only if you use your car for business. If you drive a car for both personal and business uses, you may deduct your insurance costs from your taxes, for the percentage of the time you use your car for business. You are, however, unable to deduct personal losses due to casualty or theft, regardless of whether or not the loss is covered by your policy.
XIV. Rental Insurance
89. Does My Auto Policy Cover Rental Cars?
Depending on your coverage, you may be covered for a rental car if your car is damaged in an accident. If you carry comprehensive, collision and liability coverage on your own vehicle, the coverage will most likely extend to the rental car as well. The same is true when you rent a car for business or travel. For details on what covers rental car damage, visit here.
XV. Legal Questions
90. Does Auto Insurance Cover Negligence?
In most cases, you're determined negligent if you didn't do what a prudent driver would do. For example, if you hit a pole to avert hitting a person, you're not negligent but if you hit a pole because there was a spider in your car, you'd be considered negligent and may have a hard time getting insurance coverage for the accident.
91. Does Auto Insurance Cover Punitive Damages?
Many insurance companies exclude punitive damages or damages caused by bad intentions. Punitive damages can be awarded if the plaintiff can prove that the other person did something that was grossly negligent or intentionally engaged in misconduct.
92. How Do I Get Non-Owners Auto Insurance?
You can get a non-owners policy here. Non-owner car insurance provides liability coverage when you don't have a car and drive one that isn't yours. Liability coverage pays for injuries and damages you cause to others in a car accident. However, it doesn't cover any damage to the car you've borrowed or rented, nor does it pay for any of your own injuries if you cause a crash.
93. What Is Full Tort Auto Insurance?
Some states only have limited tort insurance, some full tort insurance and a few allow you to choose between a full tort or limited tort insurance plan. With a limited tort plan you will only sue the other driver in cases of severe injury. With full tort, a driver can sue for pain and suffering, even inconvenience.
XVI. Miscellaneous Questions
94. How Does Force-Placed Auto Insurance Work?
If you bought or leased a car and do not have full insurance while you still owe money on the car, the lienholder can opt to insure the car and you will be billed for it. You never want this to happen because it's not in the lienholder's best interest to find you a good rate. Shop car insurance rates and buy your own coverage before this happens.
95. Is Good to Go Auto Insurance Legit?
Good2Go sells policies through member companies and several other partners, so you're never sure which company you're getting a quote from. Regulators in several states have found responsible with the business practices of the Good2Go brand. Concerns have also been raised about the companies' financial strength. You're better off comparing car insurance rates from established companies.
96. Where to Buy Mexican Auto Insurance
If you buy Mexican insurance at the kiosks along the way into Mexico you will pay more than you need to. Ask your carrier if they offer Mexican insurance. If not, visit here.
97. Is a Trailer Covered by Auto Insurance?
In some cases, you can add a trailer to your auto policy but you will likely need to pay a little bit more. If you do not add the trailer to your policy, you may not be covered for damages in the event of an accident. You may also not be covered if the other person files a claim against you if you caused the incident. For more on insuring an RV visit here.
Did you know that comparison shopping for car insurance can save you up to 40 percent on your policy? SmartFinancial has free online tools that can help you find insurance that fits your budget. Just enter your zip code and we'll provide you with quotes from local agents in your area.
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