Auto Insurance FAQs
Auto insurance can be a crucial safeguard for drivers, passengers and vehicles alike. With so many coverage options, terms and policy details, navigating the world of auto insurance can feel overwhelming. Whether you’re buying your first policy or reviewing your current one, understanding the basics can help you make smarter, more confident decisions.
What Does Auto Insurance Cover?
Auto insurance typically includes several types of coverage:
- Liability coverage
- Collision coverage
- Comprehensive coverage
- Uninsured/underinsured motorist coverage
- Medical payments coverage/personal injury protection coverage
Is Auto Insurance Legally Required?
Most states require at least liability insurance. The minimum coverage varies by state, so it’s essential to check your local laws or work with a knowledgeable insurance provider.
How are Premiums Determined?
Insurance providers typically consider factors like your age, driving history, vehicle type, location and credit score. Safe drivers with clean records usually pay less.
Do I Need Insurance if I Don’t Drive Often?
Even if you drive infrequently, you’re still legally required to maintain at least the minimum liability coverage in most states. Additionally, your vehicle can still be damaged while parked, and insurance can help financially protect you from those risks.
Can I Lower My Insurance Costs?
Many insurers offer discounts for:
- Safe driving records
- Bundling auto with home or renters insurance
- Installing anti-theft devices
- Taking defensive driving courses
- Being a good student (for young drivers)
What Should I Do After an Accident?
After an accident, verify that everyone is safe and call emergency services if needed. Exchange information with the other driver, take photos of the scene and notify your insurance company as soon as possible to start the claims process.
Learn More
For auto insurance near you, contact All Your Needs Insurance.