Auto Insurance

Most states require you to carry a minimum amount of liability insurance and also provide proof of insurance to register a vehicle or renew your license. In the case of an accident, the minimum liability insurance required by the state may not be enough coverage to pay for the damages that result after an accident. In this case, the driver responsible for the accident may have to pay additional expenses out of pocket. To determine how much auto insurance you need, consider:

• The value of your assets
• How and when you drive
• What you drive
• Who is in the car with you

To ensure everyone on the road is covered in case of an accident, most states require drivers to carry a minimum amount of liability insurance, or establish financial responsibility in some other way. Drivers must also have the ability to provide proof of insurance to register or renew a driver’s license. This is the case for cars, trucks, motorcycles and commercial vehicles.

Insurance companies assess your risk by using a Risk Assessment Indicator, which is a numerical score based on credit report information. These Risk Assessment Indicators are highly predictive of future claim activities, helping insurance companies charge a rate that is appropriate for the risk of the insured individual.

While certain behaviors, like reckless driving or multiple traffic violations, have more potential to increase your insurance premiums, the method used to calculate your risk is based on a comprehensive, proprietary formula.

We compile information from a variety of sources to determine the probability you’ll get into an accident, as well as the level of your individual potential risk. Talking with your insurance agent is the best way to determine whether you may, or may not, be considered a risk for auto insurance.

While there are a number of factors that contribute to the cost of your premium, there are some things you can do to help reduce it. The car you drive will greatly affect your premium. To lower your auto insurance costs, you may consider switching automobiles and driving a safer, slightly older or less valuable vehicle. The more your vehicle is worth, the more it can cost to insure it. If you don’t want to change cars, you can modify your vehicle to make it safer or lower-risk by adding anti-theft devices or features like anti-lock brakes. In addition, selecting a higher deductible and ensuring that your coverage doesn’t lapse may help you keep your auto insurance costs down.

If you don’t want to change or modify your car, you can also consider changing your driving habits. Your driving record is one of the most important factors considered when determining your premium. You can also try cutting down on the miles you drive and getting other insurance policies to save you money.

If you’re renting or borrowing a car through a personal car sharing service like Turo, your policy is designed to provide coverage in the same way as if you rent from a commercial car rental company, like Hertz. However, your car will not be covered by your policy if you make it available for rental through a personal car sharing service.

The term full coverage generally means that the insurance policy has both liability coverage and coverage for damage to your vehicle. The term full coverage does not mean that "everything" is covered no matter what happens. Your auto insurance Policy Declaration page lists the coverage you have selected. An insurace agent can help you select auto insurance coverage that fits your needs and budget.

Generally speaking, the insurance goes with the car. For example, if you have an accident while driving someone else's car, the owner's insurance would apply toward damages first. Your auto insurance would generally apply in the event the owner of the vehicle had no auto insurance or did not have enough auto insurance to pay the damages. For specific information and guidance on your coverage in this situation, contact your local insurance agent.

Car rental companies charge daily fees for "CDW" coverage (which means their insurance will pay for all damages covered in your rental agreement). Rental car coverage under a private passenger policy varies state by state.

Generally, being in an accident will not cause your policy to be canceled. However, after the facts of the situation are reviewed, you may be required to pay a higher premium for your policy upon renewal. Your personal insurance agent will help you understand the potential increases if an accident does occur.