Auto FAQs

1) What does auto insurance cover?

Auto insurance can include:
Liability coverage (injury or damage to others)
Collision coverage (damage to your vehicle)
Comprehensive coverage (non-collision damage)
Personal Injury Protection (PIP)
Uninsured/Underinsured Motorist coverage
Coverage depends on the options you select.

2) What is liability coverage?
Liability pays for:
Injuries you cause to others
Damage you cause to another person’s vehicle or property
It does NOT cover damage to your own car.

3) What is collision coverage?
Collision covers damage to your vehicle if you:
Hit another vehicle
Hit an object (pole, fence, guardrail)
Are involved in a single-car accident

4) What is comprehensive coverage?
Comprehensive covers non-collision damage such as:
Theft
Vandalism
Fire
Flood
Falling objects
Hitting an animal

5) What is Personal Injury Protection (PIP)?
In no-fault states like Florida, PIP covers:
Your medical expenses
Lost wages
Certain essential services
It applies regardless of who caused the accident.

6) What is Uninsured/Underinsured Motorist (UM/UIM)?
This protects you if:
The at-fault driver has no insurance
The at-fault driver doesn’t have enough insurance
It helps cover your medical bills and sometimes pain and suffering.

7) What is a deductible?
A deductible is the amount you pay before insurance pays on certain coverages.Example:
If you have a $500 collision deductible and $3,000 in damage:
Insurance pays $2,500.

8) Why is my auto insurance premium high?
Rates are based on:
Driving history
Age
Location
Type of vehicle
Credit (in some states)
Claims history
Coverage limits selected

9) Does insurance follow the car or the driver?
Generally, insurance follows the vehicle first.
If someone drives your car with permission, your policy is usually primary.

10) What happens if someone hits me?
If the other driver is at fault:
Their liability coverage should pay
Your collision coverage can pay first (you may recover deductible later)
If they are uninsured, UM coverage may apply.

11) Does auto insurance cover rental cars?
Often yes, if you carry collision and comprehensive.
Coverage usually extends to personal-use rentals within the U.S.
Always verify before renting.

12) What happens if my car is totaled?
If the repair cost exceeds a certain percentage of the vehicle’s value:
The insurer declares it a total loss
You are paid the Actual Cash Value (market value minus deductible)

13) What is gap insurance?
Gap insurance covers the difference between:
What you owe on your loanThe actual cash value of your vehicle
It’s helpful if you financed with little money down.

14) How can I lower my auto insurance premium?
You may:
Increase deductibles
Bundle home and auto
Maintain a clean driving record
Take a defensive driving course
Install anti-theft devices
Review coverage annually

15) What should I do immediately after an accident?
Check for injuries.
Call 911 if necessary.
Exchange information.
Take photos.
Notify your insurance company as soon as possible.