Auto Insurance FAQs: Your Questions Answered

Auto insurance is a financial protection policy designed to help cover certain costs related to vehicle accidents, damage, injuries, theft, and liability claims. Policies and coverage options vary by provider and state.

In most states, drivers are legally required to carry at least minimum liability insurance coverage. Some states may require additional coverage types depending on local laws and circumstances.

Liability insurance generally helps cover damages or injuries you may cause to another driver, passenger, or property during an accident.

Liability coverage may include:

• Bodily injury liability 
• Property damage liability 
• Legal expenses related to covered claims

Full coverage insurance usually refers to a combination of:

• Liability coverage 
• Collision coverage 
• Comprehensive coverage 

Full coverage may help protect your vehicle against accidents, theft, weather damage, vandalism, and other covered events.

Collision coverage helps pay for damage to your vehicle after an accident involving another vehicle or object, regardless of fault in many situations.

Comprehensive coverage helps protect your vehicle against non-collision-related events such as:

• Theft 
• Fire 
• Hail damage 
• Falling objects 
• Animal collisions 
• Vandalism

Auto insurance rates vary based on many factors, including:

• Age 
• Driving history 
• Vehicle type 
• ZIP code 
• Coverage level 
• Credit history (in some states) 
• Claims history 

Every driver’s situation is different, which is why comparing insurance options can help identify potential savings opportunities.

Insurance rates may increase for several reasons, including:

• Accidents or claims 
• Traffic violations 
• Adding drivers or vehicles 
• Moving to a new location 
• Changes in state regulations 
• Rising repair or medical costs

Drivers may reduce insurance costs by:

• Comparing quotes regularly 
• Maintaining a clean driving record 
• Bundling policies 
• Increasing deductibles 
• Qualifying for discounts 
• Driving fewer miles annually

In some states, insurance providers may use credit-based insurance scores as one factor when determining rates. Regulations vary by state. 

An SR-22 is not technically an insurance policy. It is a certificate filed by an insurance provider to verify that a driver carries required insurance coverage.

SR-22 filings are often required after:

• DUI or DWI convictions 
• Driving without insurance 
• License suspensions 
• Serious traffic violations

Yes. Many insurance providers offer coverage options for drivers with:

• Speeding tickets 
• At-fault accidents 
• DUI-related violations 
• Coverage lapses 
• Non-standard driving histories

Insurance providers may classify drivers as high-risk based on factors such as:

• Multiple accidents 
• Traffic violations 
• DUI convictions 
• Poor insurance history 
• Young or inexperienced drivers

A deductible is the amount you pay out of pocket before insurance coverage applies to a covered claim.

• Higher deductibles may lower monthly premiums 
• Lower deductibles may reduce upfront costs during claims 

Choosing the right deductible depends on your financial situation and risk tolerance.

Coverage varies by policy. Some policies may include rental reimbursement or extend certain coverage protections to rental vehicles.

Comprehensive coverage may help cover theft-related losses for covered vehicles.

Coverage rules vary depending on the insurance provider, state laws, and policy details. In many cases, insurance primarily follows the vehicle.

Allowing coverage to lapse may result in:

• Higher future insurance rates 
• License suspension in some states 
• SR-22 filing requirements 
• Financial risk if an accident occurs 

Maintaining continuous coverage is often recommended.

Insurance rates and coverage options can vary significantly between providers. Comparing quotes may help drivers:

• Find lower monthly premiums 
• Explore better coverage options 
• Identify discounts 
• Adjust policy features to fit their needs

Many drivers can review insurance opportunities in just a few minutes depending on the information provided.

Teen drivers often pay higher insurance rates because they have less driving experience and statistically higher accident risk.

Some insurance providers offer:

• Good student discounts 
• Safe driving discounts 
• Driver training discounts 
• Multi-vehicle discounts 

In many situations, adding a teen driver to a family policy may be more affordable than purchasing a separate policy. 

Commercial auto insurance helps provide coverage for vehicles used for business purposes.

This may include:

• Company vehicles 
• Contractor trucks 
• Delivery vehicles 
• Service vans

If a vehicle is primarily used for business purposes, personal auto insurance may not provide adequate coverage. Commercial policies may be necessary depending on usage.