See What Our Customers Have Asked about Auto Insurance

Frequently Asked Questions (FAQs) about Auto Insurance

Take a look at some of the most Frequently Asked Questions (FAQs) we receive from our customers as they shop with us for auto insurance online.

Note: The responses and quick tips provided are basic information for auto insurance. Specific procedures, policies, protocols, and requirements may vary.

• What Is Auto Insurance And Why Do I Need It?

• What Are The Most Important Things To Consider When Purchasing Auto Insurance?

• How Are Auto Insurance Rates Determined?

• Why Do Auto Insurance Rates Vary So Much?

• What Affects My Individual Auto Insurance Rates?

• How Can I Lower My Rates?

• What Is A Deductible?

• Why Do I Need To Give So Much Personal Information? Will Everyone Have Access To My Personal Information?

• Why Does My Credit History Affect My Rates?

• How Is My Credit Score Used?

• Does The Use Of My Credit Information Unfairly Discriminate In Any Way?

• What If I Forget To List Something On My Driving Record?

• Can Other People Drive My Car and Still Be Covered?

• Why Should I List All Household Members Even When They Don't Drive My Car?

• Who Is Considered To Be A Family Member?

• Which Household Members Do Not Require Coverage?

• Does My Policy Cover Me When I Rent A Car?

• What Is The Definition Of An "Accident?"

• What is a deductible?

• What Should I Do If I Am Involved In An Accident?

• How Do I Shop For The Best Rates For Auto Insurance?

• Why Can't I Get A Quote On The Internet?

What Is Auto Insurance And Why Do I Need It?

An auto insurance policy is a contract between you and an insurance company. You pay the premium, and in return, the insurer agrees to pay for any car-related losses detailed in the policy. Most states require that all drivers have an auto insurance policy, or the ability to provide evidence that you have the financial resources to pay for injuries or damages. Severe civil and criminal penalties may be incurred if you do not have auto insurance, including:

• Vehicle impoundment

• Revocation or suspension of driver's license

• Lawsuits

• Fines

• Imprisonment

What Are The Most Important Things To Consider When Purchasing Auto Insurance?

There are important factors to consider when buying auto insurance, for example:

• Liability Coverage
  Choose the amount of liability coverage that meets your needs. For example, in California, the minimum requirements are $15,000 per person, $30,000 per accident, and $5,000 in property damage. Check with your local Department of Motor Vehicles for more information.

• Additional Coverage - Optional
  Decide if you need optional coverage. Other types of coverage include collision, comprehensive, uninsured or underinsured motorist, and towing and rental reimbursement.

Once you have decided on the coverage you want to include in your policy, you need to select an insurance carrier. We will help you choose a company with the services and rates that best meet your needs by presenting a number of carriers, where available.

How Are Auto Insurance Rates Determined?

Insurance companies use statistical history to determine current rates. Rates are based on the amount needed to pay all claims and company business expenses.

Why Do Auto Insurance Rates Vary So Much?

You might think that your auto insurance rate would be pretty much the same no matter which company you choose. But auto insurance rates can vary widely for a number of reasons:

• Varying claims experience
  Auto insurance is priced to cover the costs of accidents that may happen in the future. Since companies cannot see into the future, they use information about their past claims experience. Since each company has had different claims experiences with the consumers they insure, rates can vary.

• Varying costs of doing business
  Each company's cost of doing business (how much they pay to sell and service policies), along with their financial goals, is different, resulting in different prices being charged to consumers.

What Affects My Individual Auto Insurance Rates?

A number of factors can affect the cost of your automobile insurance. Age, make and model of car, driving record, purpose the car serves, where you keep and drive your car, and your credit rating all affect insurance rates.

How can I lower my rates?

There are a number of ways you can lower your rates. Here are some basic tips:

• Shop around.
  You can often find policies that vary hundreds of dollars for the same coverage on the same car. IntelliQuote partners with ComparisonMarket allowing you to compare, save, and apply online with one easy online application.

  Note: By selecting the ComparisonMarket link, you are leaving IntelliQuote Insurance Services and will be transferred to ComparisonMarket.com. The Terms of Use and Privacy Policy of that web site are governed by ComparisonMarket.com.

• Before You Buy a Car, Check on Insurance Costs
  Auto insurance premiums take into account "sticker price," repair costs, overall safety record for the automobile, and the likelihood of theft for a particular car.

• Inquire about discounts.
  Ask your insurer if they offer any discount plans. Most insurance companies have both vehicle and operator discounts.

• Ask for higher deductibles.
  Raising your deductible can lower your premiums. Make sure you can afford a higher deductible.

• Drive defensively.
  Be an alert driver, abiding by the rules of the road, and watching for other autos and/or obstacles on the road while driving.

• Keep your credit in good standing.
  Maintain your credit history to help cut your auto insurance costs. Insurers look at credit information to price auto insurance policies.

What Is A Deductible?

A deductible is the amount of each claim you agree to pay on collision or comprehensive coverage. Your insurer will pay the difference between the claim amount and the deductible. For example, if your claim is $2000 and your deductible is $500, your insurer will pay $1500 and you will pay $500.

Why Do I Need To Give So Much Personal Information? Will Everyone Have Access To My Personal Information?

Auto insurance companies typically collect only the information necessary to provide accurate insurance quotes. This may include your age, gender, marital status, and driving history. This information is not generally made available to others for any other purpose. All our carriers feature a "Privacy Policy" on their web sites to provide more detailed information on how your personal information is used and protected.

Why Does My Credit History Affect My Rates?

Along with rating information such as gender, age, and location, insurance companies use credit history information to determine rates because it is a reliable indicator of overall insurance risk.

Having a good credit history can work to your advantage. Customers with good credit history generally can get lower rates than those without.

Typically, auto insurance companies will not use your credit history to deny coverage or to cancel your existing policy.

How Is My Credit Score Used?

Auto Insurance carriers review your credit history to estimate the likelihood or filing a claim. Auto Insurance carriers may consider the following in your credit record to determine your auto insurance rate:

• Number and history of late payments.

• Derogatory public records (bankruptcies, judgements, liens).

• Outstanding balances on credit accounts, how long you have had a credit history.

• The number of non-insurance inquiries.

• The number and age of auto loans.

Does The Use Of My Credit Information Unfairly Discriminate In Any Way?

Your credit history is based on your bill-paying behavior and how you use available credit. It is not based upon income, race, or religion. Those who pay their bills on time may receive the benefit of lower auto insurance rates.

What If I Forget To List Something On My Driving Record?

Your quotes are based on information you provide. All driving and claims records are verified before a policy is issued. Any omitted information would be noted at that time and the insurance premium would be adjusted to reflect your actual driving record.

Can Other People Drive My Car And Still Be Covered?

Generally, anyone who has permission to drive your vehicle is covered. All people who regularly use your car should be listed on your policy. You should check with your insurance company for specific details.

Why Should I List All Household Members Even When They Don't Drive My Car?

All family residents of your household of driving age must be listed to protect both you and your insurance carrier. Exclusions are available in some states for family members who do not require coverage.

Who Is Considered To Be A Family Member?"

Typically, family members include any immediate or extended family members of driving age. This includes parents, children, siblings, grandparents, aunts, uncles, cousins, foster children, in-laws & step family members. There may be some variations in this list among different carriers.

Which Household Members Do Not Require Coverage?

Household residents that do not need to be listed include:

• Non-family household residents who do not drive the vehicle.

• Immediate dormitory roommates who are non-family and do not drive the vehicle.

• Additional residents of a military barracks need not be listed as drivers.

Does My Policy Provide Coverage When I Rent A Car?

Today, most companies will provide rental car coverage only if you are renting a car on vacation. Call your insurance company to find out what rental coverage you have under your policy.

What Is The Definition Of An "Accident?"

For most carriers, an "accident" includes the following:

• "At Fault," where you were negligent.

• "Not at Fault," where the other party was negligent.

• Reported and unreported collisions where you were involved as a driver.

• "Not at Fault" occurrences where your parked vehicle was damaged in a collision.

What Should I Do If I Am Involved In An Accident?

Follow these simple steps:

• Ensure Safety First
  Make sure everyone is safe, call for medical assistance if needed, and notify the police.

• Exchange Driver Information
  

  • Do not discuss the accident with anyone except for your insurer or the police.

  • Give the other driver(s) your name, address, phone number, and the name of your insurance company.

  • Get the same information from the other drivers(s). If the other driver is uninsured, report the loss under your uninsured motorist coverage with your company.

  • Gather as many details about the accident as you can (time, place, road conditions, etc.)

• Notify Your Insurance Agent
  Call your insurance agent as soon as possible. Your insurance agent will walk you through the rest.

How Do I Shop For The Best Rates For Auto Insurance?

We make it easy for you to compare rates for your state of residence. Get a Quote for auto insurance from our partner, ComparisonMarket, to compare and save on auto insurance from some of the nation's highly rated insurance companies.

Why Can't I Get A Quote On The Internet?

Some of our carriers may not be able to provide a quote online for one or more reasons:

• You live in a state where our carriers are not allowed to offer insurance quotes or applications online.

• You own an older vehicle.

• You own an out of state vehicle.

• You have several drivers and/or vehicles.

• You (or another family member) are a student, or in the military and reside out of state with the vehicle.

You may need to contact the insurance carrier by telephone to apply. Otherwise, contact a local auto insurance agent who may be able to help you.