Common Insurance Questions

Do red cars cost more to insure?
Color is not a factor used to calculate car insurance rates — we don’t even ask you what color your car is when you get a quote from us. Factors that do matter are the year, make, model, body type, engine size and age of your car, as well as drivers on your policy.

Can auto insurance companies can charge what they want?
Each state requires auto insurance companies to file how they calculate customer rates, and insurers cannot deviate from these filed rates. Each state also has regulators who review that information and the rates companies charge.

Do I really need more than the bare minimum amount of car insurance?
Many states have minimum car insurance requirements, but the minimum amount of required insurance may not cover all of your costs. If you cause an accident that results in a lawsuit and your insurance limits don’t cover all of the damages, your assets could be pursued.

If someone driving my car causes an accident, will I be held responsible?
It’s possible you’ll be financially responsible for an accident — even if someone else is driving your car. In most states, the car insurance policy covering the vehicle is considered the primary insurance, which means that the insurance company for the vehicle must pay for damages caused by an accident. Even so, it’s still possible that the driver’s insurance company could be responsible for some of the damages. Why? If the vehicle’s insurance limits are too low and don’t cover all the damages, the driver’s insurance may be next in line to pay for the remainder of the damages.

Since policies and laws differ by state, knowing how your state’s insurance system works could influence who drives your car.

How come my car insurance rates  are higher than my neighbor’s rates?
Car insurance rates are individually determined, so factors such as age, driving record, type of vehicle and marital status are considered. Each person’s situation is unique, and car insurance rates will vary because of this.

Do car insurance rates go down dramatically when a driver turns 25?
Younger and older drivers typically have the most car crashes, and customers of different car insurance companies have different claims experiences. When determining auto insurance rates, insurers generally consider a variety of information about you, including age, vehicle information, claims history and the claims experience of other customers like you.

While it’s generally true that rates will go down when you turn 25 if all information about you and your vehicle remains the same, changes in one or more of the other pieces of information used to calculate a rate could lead to you getting a higher, lower or the same rate when you turn 25.

Does comprehensive coverage protect drivers in all situations?
Comprehensive coverage is one type of protection available on an auto insurance policy (others being Collision, Uninsured Motorist, etc.) Comprehensive coverage pays only for damage caused by an event other than a collision, including the following. Remember, there are also steps you can take to limit your risk.

Fire
Theft
Vandalism
Weather (hail, floods, etc.)
Vehicle collisions with animals

Can I use Rental Reimbursement coverage to rent a car for my vacation?
Unless your insured car is in the shop as the result of an accident, you won’t be able to use Rental Reimbursement to rent a car for vacation. Depending on the limits you selected when you bought your policy, Rental Reimbursement coverage pays for some or all of the cost of a rental car — but only when your insured car is in the repair shop because of a car accident.

Anyone who drives my car with my permission is covered if I have insurance right?
If you allow someone to drive your car, that person is covered by your insurance policy. Keep in mind that if the person who drives your car doesn’t have insurance and causes an accident, you could be held responsible for the damage, which could make your car insurance rate go up.

Is Information from my credit report is used when determining my car insurance rate?
We order your credit report and use information from it to calculate your insurance score — this score is used when determining your car insurance rate. We use credit because numerous studies have shown that credit is a very powerful and independent predictor of the likelihood of future accidents or insurance claims. In fact, data shows that consumers with the worst insurance scores are twice as likely to have an accident or insurance claim as those with the best scores.