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The 30 Most Frequently Asked Questions About Auto Insurance

Unless you’ve had to look up information about auto insurance to get a policy for yourself, you might not know a whole lot about it, and that’s okay, a lot of people don’t. Drivers Ed seems as good a time as any to teach people about auto insurance and how it works, but it’s seldom covered.

If you’re confused or unsure about how to get an auto insurance estimate or how auto insurance works in general, CoverHound can help.

The Top 30

There is no such thing as a stupid question. Here are 30 questions people are constantly asking about auto insurance.

Q: How long does it take to get an insurance quote?
Finding auto insurance online takes as little as 5 minutes when you use CoverHound.

Q: What happens if I lie about my driving history?
A: If you lie about your driving history, the DMV reports that you are committing what is known as “soft fraud.” If you do lie, the insurance company can deny you services and cancel your coverage.

Q: What does auto insurance cover?
A: Auto insurance covers you, your car and others involved in a vehicular accident.

Q: Are there different insurance coverage types?
A: Yes, there are different insurance coverage types and they are as follows: Bodily Liability, Property Damage Liability, Comprehensive, Collision and Uninsured & Underinsured.

Q: Is auto insurance mandatory?
A: Yes, auto insurance is mandatory in every state across the U.S., but insurance carrying laws vary. To make sure you have the right insurance, visit your state government’s transportation website.

Q:  What happens if I don’t get auto insurance?
A: If you get in an accident and you’re uninsured, you face getting sued, losing your life’s savings and getting jail time.

Q:  How expensive is auto insurance?
A: Auto insurance is relatively inexpensive, but this depends on your driving history and credit report.

Q:  What is the cheapest policy?
A:  The most affordable policy is auto liability. Though it is often recommended that you purchase more than this coverage type.

Q:  Can I put anyone on my policy?
A:  You can include members of your household on your policy, but you must all live at the same address.

Q:  Can you pay for auto insurance once a month or annually?
A:  Most insurance companies leave this to your choice. Some will offer you a lower insurance premium rate if you pay your premiums annually.

Q: What happens if I forget to pay my premium?
A: For your first offense, your insurance company will mail you a warning notice. If it happens again, they will issue a late charge or cancel your policy.

Q: What is an insurance deductible?
A: An insurance deductible is the amount of money you pay after an accident before your insurance company pays for the remaining amount.

Q: Can I deduct my auto insurance from my taxes?
A: While it truly depends on your situation, in most cases, car insurance is not tax deductible.

Q: Can I change my coverage whenever I want?
A: Yes, but you will be charged a cancellation fee. If you wait until the end of your policy, then you won’t be charged.

Q: Can an auto insurance company deny you service?
A: Yes, they can. If you have a DUI on your record, have bad credit or have caused a serious accident, you can be denied service.

Q: Will my gender affect my premium rates?
A: Yes, gender does affect premium rates. Using statistical driving data, it has been found that male drivers are generally involved in more accidents. As result, male drivers pay bigger premiums than their female counterparts.

Q: Does my credit score really affect my premiums?
A: Yes. If you have a low credit score, your insurance premiums will be higher.

Q: Will my red car make my insurance bills more expensive?
A: No. This is a myth. Driving a red-colored vehicle does not make your insurance premiums more expensive than other colored vehicles.

Q: How can I get an insurance discount?
A: By being a good student, having a clean driving record, a low credit score and by asking your insurance agent for discounts.

Q: If I’m driving someone else’s car and get in an accident, whose insurance do I use?
A: You will use their auto insurance. For whatever costs that are left over, you will then use your insurance.

Q: Will having a parking ticket on my driving history raise my premium?
A: If you only have one ticket on your driving history, your premium rates will not be affected.

Q: My car is 20 years old. Will insurance still cover it?
A: This depends on the shape of the vehicle. Typically, older cars are provided with less coverage because they are not worth very much money, and would likely be scrapped altogether in the case of an accident.

Q: Does my auto policy cover a rental vehicle?
A: In most cases, yes. If you’re driving a rental car of similar value to the car you own, your auto policy should be enough to cover the rental vehicle. Liability coverage would cover third-party vehicle damages. PIP would cover yours or the other parties’ medical bills, and if you’re worried about your belongings being stolen, well, renters or homeowners insurance should extend to cover that, too. If you don’t have collision or comprehensive coverage on your regular auto policy, then the one rental car add-on worth considering is a loss-damage waiver. This waives your financial responsibility in the event the car is damaged or stolen. It’ll also cover loss-of-use charges while the car’s being repaired. Always double check with your insurer before declining the different rental car coverages if you’re not clear on what coverage your policy provides.

Q: How long does it take to file a claim?
A: Filing a claim with your insurance agent should only take 20 minutes.

Q: When can an auto insurance company deny your accident claims?
A: They can deny your claims if they have proven beyond a reasonable doubt that you were driving recklessly or lied about accident damages.

Q: Will my auto insurance pay to have my stolen car replaced?
A: This depends entirely on the insurance coverage you have. Comprehensive coverage will protect you in this type of event.

Q: Will auto insurance companies share my information with each other?
A: Yes. Auto insurance companies will share your insurance claims history with each other.

Q: How do I know if I’m getting a fair deal?
A: By doing quick auto insurance price comparisons with CoverHound.

Q: Which insurance company is the best?
A: This depends entirely on your area and what type of coverage you are looking for.

Q: What happens if I cancel my policy before the contract expires?
A: You will be charged a cancellation fee.

Now that you have this knowledge, go out and find the right auto insurance protection with CoverHound.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.
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