Shopping for auto insurance can feel complicated. Understanding a few basic concepts can make it easier to choose coverage and recognize what you are paying for. Here are answers to 15 common auto insurance questions.
1. What Does Auto Insurance Cover?
An auto policy can include liability, uninsured/underinsured motorist, collision, comprehensive, medical-related coverages, rental reimbursement, roadside assistance, and other options. Coverage varies by policy and state.
2. What Is the Difference Between Liability, Comprehensive and Collision?
Liability generally addresses covered injuries or property damage you cause to others. Collision generally covers covered damage to your vehicle from a collision. Comprehensive generally addresses covered losses such as theft, vandalism, fire, falling objects, animal strikes, and certain weather events.
3. How Much Liability Insurance Do I Need?
State minimum limits are a starting point, not necessarily the right amount for you. Consider income, savings, assets, household exposures, and the potential financial impact of a serious accident. Higher limits and a personal umbrella may be worth considering.
4. What Is an Auto Insurance Deductible?
A deductible is generally the amount you pay toward a covered physical-damage claim. A higher deductible may lower the premium but increases your out-of-pocket cost after a covered loss.
5. Do I Need Comprehensive and Collision?
A lender or leasing company will generally require physical-damage coverage. If the vehicle is paid off, consider its value, coverage cost, deductible, and whether you could afford to repair or replace it yourself.
6. Will My Auto Insurance Cover a Rental Car?
Certain personal auto coverage may extend to a temporary rental, but limitations and exceptions apply. Check your policy and any credit-card benefits before declining rental-company options.
7. Does Auto Insurance Cover Someone Else Driving My Car?
Sometimes. Coverage can depend on permission, frequency of use, household residency, purpose of use, driver status, and policy terms. Regular drivers should be disclosed.
8. Does My Teenager Need to Be Added?
A newly licensed youthful household driver generally needs to be disclosed. Ask about available good-student, training, telematics, or other discounts.
9. Why Did My Premium Increase Without an Accident?
Rates can change because of repair costs, parts, medical expenses, theft trends, weather losses, location, insurer rate changes, and personal rating factors.
10. Will an Accident or Ticket Increase My Premium?
It may. The effect depends on severity, fault, driving history, insurer guidelines, discounts, state rules, and other factors.
11. What Is Uninsured/Underinsured Motorist Coverage?
This coverage can help protect you in certain covered losses involving a driver with no insurance or insufficient insurance, subject to state law and policy terms.
12. Are Personal Belongings Stolen From My Car Covered?
The vehicle may be covered for theft under comprehensive coverage, but personal belongings are generally handled separately and may fall under home, condo, or renters insurance.
13. What Should I Do After an Accident?
Check for injuries, call emergency services when appropriate, move to safety if possible, exchange information, take photos, obtain witness information, and report the accident promptly.
14. Should I Choose Auto Insurance Based Only on Price?
No. Compare liability limits, deductibles, optional coverages, exclusions, service, and premium. Similar-looking quotes can provide different protection.
15. How Often Should I Review My Auto Insurance?
Review it at least annually and after major changes such as adding a vehicle or driver, moving, changing your commute, paying off a vehicle, or changing household circumstances.
Have More Questions?
Call Oberryman Insurance Agency at 703-986-0468 to request an auto insurance review, discuss your current coverage, or request a quote.
Insurance coverage, eligibility, rates, limits, deductibles, exclusions, endorsements, underwriting, and availability vary by insurance company, policy, state, and individual circumstances. This article is provided for general informational purposes and does not modify or replace the terms of an insurance policy.
