Frequently Asked Questions
Does my insurance cover friends driving the car?
Yes, in most cases. If they've got your permission, they can drive it once or twice. Check with your insurance company to be sure though.
Anyone in your household must either be listed on the policy or excluded from it, however. If someone will be driving the vehicle regularly, they must also be on the policy.
Additionally, some auto insurance companies also require written permission to use the vehicle. Again, it's best to check with an insurance agent to be sure you do it by the book.
Will normal auto insurance cover my car?
For 99% of vehicles you buy from an auto dealer, yes.
If you have a specialty vehicle, like a classic car, a street rod, a dune buggy, or a work vehicle, you can still probably get coverage through a normal company. However, it might not be the best option for you. It's important to assess your needs, such as the replacement value of the vehicle and what the insurer will cover, repair costs, and more. If you do need specialty insurance for you vehicle, consider these companies:
Hagerty (Classic cars)
Grundy Worldwide (Classic cars)
JC Taylor (Antique and Specialty Automobiles)
Is Getting Minimum Coverage Okay?
This depends on the vehicle you have, the property you own, whether you have good health insurance or not, and where you live.
Consumer advocates recommend that drivers in most states get more coverage than the state minimum. Liability coverage compensates others for their losses in accidents, but it is really protecting you. How? By preventing you from losing what you own to pay for the damages. Without enough liability coverage, you could lose your home, all of your property, your car, and even future income. Get enough insurance to cover your essential property.
If you don't have health insurance, you will also need to get coverage to make sure you get proper treatment after collisions without crippling your financial future with debt. You might also want to get coverage to replace your current vehicle.
People who might be able to get away with minimum insurance:
Do not own a home, property, or stock
Will not be replacing their existing vehicle
Have good health insurance
Are cheap auto insurance quotes accurate?
Quotes are as accurate as the information you enter. Since quotes use many of the same major factors to calculate rates as the actual insurance algorithms, putting in accurate information leads to accurate results. If a quote is different from the actual rate you receive for auto insurance, this is most likely because information was inaccurate or incomplete.
Is accident forgiveness as good as it sounds?
Consumer advocates generally regard accident forgiveness-such as that offered by AllState-to be a marketing gimmick that has no real value for policyholders. The pitch says that, rather than increase you rates after your first accident, you get a free pass and rates continue as normal. According to one advocate, however, "If you can qualify for accident forgiveness, they wouldn't increase your rates after one accident anyhow. People who need it because they are accident-proven do not qualify for it."