When it comes to auto insurance, you may be asking yourself, “How do these specific coverages work?” and “How do I know what specific coverage is right for me?” In order to be sure what coverage is right for you, you should contact a local agent you can trust. 

In the following segment, we will go over key factors that help to rate your specific auto policy, frequently asked auto insurance coverage questions, and the benefits of standard auto insurance coverage vs non-standard auto insurance coverage.

 What Affects Auto Rates?

Auto rates can be affected by factors such as age, gender, driving experience, credit history, your car’s garaging location etc. These key factors help us rate a unique policy for you based on their basic characteristics.

Types of Auto Coverages 

The main difference between Standard and Non-Standard auto coverage is the level of risk that is associated with those who are covered. Standard insurance is for those who present a standard risk. For example, if you are financing, leasing, or have a loan on a car you need full coverage. 

Non-standard insurance is for drivers who have a history of traffic violations, or a DWI or DUI record. This type of insurance is much more expensive and usually does not have as much coverage as standard coverage.

Standard Insurance is a type of auto coverage for persons who have, for example, an insurance limit one one or a few of the following coverages:

Bodily Injury Coverage

$10,000, per person and up to $20,000, per accident. Bodily injury liability is car insurance coverage that pays for injuries a driver causes to other people, including other drivers, passengers and pedestrians. The policy covers medical expenses and lost wages, as well as legal and funeral expenses in some cases.

Property Damage Coverage

$10,000, per accident. Property damage coverage is car insurance that will cover any financial liability that occurs should you get in an accident and cause damage to someone else’s property. For example, backing into a mailbox or hitting someone’s fence.

Uninsured Motorist Coverage

$10,000, per person or $20,000, per accident. This coverage protects you if you’re involved in an accident with someone who does not have liability insurance or does not have enough insurance to pay for the damages.

Car accidents can be very expensive. That’s why you will want to protect yourself with the right coverage. For example, if you are in an accident with someone who is considered an uninsured or underinsured driver, this coverage can help pay for your medical bills and car repairs.

Comprehensive Coverage

This type of coverage has a deductible. Your deductible may be anywhere from $100-to-$2,000 depending on what you choose and your insurance provider. Coverage pays out after the deductible chosen is paid to the insurance company in the case of fire, theft or vandalism or other damage that was caused to your car and which is out of your control. For example a cracked windshield, accidents with animals, or weather or other acts of nature. 

Collision Coverage

This type of coverage also has a deductible. Typically, this deductible can be anywhere from $250-to-$2,000, depending on your choice and your insurance provider. This type of coverage is required if you are leasing or financing your vehicle, and will pay out in the event you damage your vehicle in an accident on another vehicle or object, such as a fence or tree.

Non-Standard Insurance

This is a term used to describe drivers who are very risky for auto insurance companies to cover at a normal rate. For example, persons who have traffic violations, speeding tickets, DUI and DWI history. This type of insurance is generally a lot more expensive than standard auto insurance.

What if someone borrows my car and gets in an accident?

If someone borrows your car and they get in an accident, you automatically assume liability and will have to file the claim through your insurance company.

How do I make changes to my policy?

You can make changes to your policy by calling your insurance agent and signing a change request. They will process the change for you and you will see the changes reflected on the next declaration page you receive.

How do I file a claim? 

You can file a claim by calling your agent and having them assist you in the process. They will collect information, contact your insurance provider for you, and provide you with a claim number and further instructions.

Is auto insurance required by law?

In the State of Florida, insurance is required if you are financing or leasing a vehicle. The bare minimum car insurance requirement for Florida drivers is $10,000 in property damage, and personal injury protection, comprehensive and collision coverage.

How do I know who is allowed to be listed as a driver on my insurance policy?

Someone can be a listed driver on your auto insurance policy if they are a licensed family member living in the household, or anyone driving your vehicle that is not insured under another auto policy.

What information do I need to give the insurance company so that I can obtain an accurate auto insurance proposal?

For an accurate auto insurance quote, you should give the following information:

  • Your Full name, address, and date of birth
  • Your current auto insurance provider
  • The current insurance limits on an existing policy
  • The year, make and model of your car 
  • Your car’s vehicle identification number or VIN
  • Your claims history in the past five years
  • If you have had any traffic violations, tickets

 How do I know whose insurance company to file my claim with after an accident?

After the police make a decision about who is liable for the accident, that person assumes liability and files the claim through their insurance.

What happens if I lie about my driving history?

When we finish filling out an auto insurance application and we go to rate your policy, we order reports and your motor vehicle record to assess the risk. This allows us to see any past history of traffic tickets, accidents, or violations. If you lie, most likely an insurance agent will catch it prior to binding your new insurance policy with their company. This is due to underwriting that is necessary on each policy we write, so that we can evaluate your specific risk category and place you accordingly with a company that insures said type of risk.

What happens if I don’t purchase and continually have insurance?

If you do not carry continuous coverage on your car, if it is financed or leased, your lender may start charging you for force placed insurance to cover the vehicle, which typically is even more expensive than standard insurance. Your license may also be suspended for not keeping continuous coverage, and you can be charged a hefty fee to reinstate it.

What are deductibles and how do they work?

Deductibles are the amount that you pay out of pocket when you need to file a claim. For example, if you get into an accident and it’s your fault and your car is totaled, you would pay your deductible and then insurance would cover the remainder to either fix your car or pay off your loan. For example, if you carry a deductible of $500 and the damage to your car is equivalent to $1000, you will pay the first $500 out of pocket to have repairs made to your vehicle.

Will getting a speeding ticket affect my rate?

Yes. Getting a speeding ticket will increase your rate. It may not be reflected in your premium right away, however, if your driving record shows a speeding ticket when you go to purchase insurance, or renew your policy, you’ll likely be charged more your next term.

Does my auto policy cover a rental vehicle?

If you have full coverage and carry comprehensive collision and liability coverage on your personal vehicle, coverage typically extends to your rental within the United States.

Can I cancel my auto insurance mid-term?

Yes, if you have acquired insurance somewhere else, or if you have sold the vehicle. You can contact your agent and they will begin the cancellation process for you. Most likely, you will have to sign a standard cancellation form so they can send it into your insurance provider.

How do I receive a refund after I cancel a policy?

While you are speaking with your insurance agent, you should verify they have the correct mailing address so that when your policy cancels, unused premiums will be refunded back to you.

Does car insurance cover towing and roadside assistance?

You are only covered for towing and roadside assistance if you purchase additional coverage. If you are not sure that you carry this coverage in case of emergency, call your agent and ask them to make sure you have purchased this coverage on your auto insurance policy. They will be able to assist you in taking steps in case you need to be towed or your car breaks down.

Does my car affect my car insurance rates?

Yes. Your car does affect your insurance rate. This is due to the year of your vehicle. Newer vehicles can sometimes receive a new car discount, depending on your insurance provider. However, sometimes, with certain insurance providers, insuring a new car can be more expensive due to the insurance company taking into consideration the cost to repair a newer vehicle.

What does car insurance not cover?

Car insurance does not cover repairs that result from regular wear and tear or general maintenance issues. For example, exterior damage such as rust or peeling paint or ripped upholstery and other cosmetic interior damages.

Do I need rideshare insurance if I Lyft or Uber?

Yes. If you drive for Uber or Lyft, rideshare insurance is required by law. Personal auto insurance no longer suffices as the vehicle is being used for business purposes.

Do I need insurance if I don’t own a car?

While you’re not legally required to have auto insurance if you don’t own a car, it is recommended for you to carry a non-owners car insurance policy if you regularly rent or borrow someone’s car. 

Conclusion 

To surmise, auto insurance is essential if you are financing, leasing, or have a loan on a car. If you are not sure what coverages are right for you, you should contact your insurance agent so they can review your coverages with you, discuss any concerns, and answer any questions that you may have. 

The most important coverage is state minimum liability and property damage because, getting into an accident without liability coverage, you could face substantial penalties including but not limited to bills from the damages that you have caused. It is important to remember to uphold continuous auto insurance coverages so that you don’t risk having your license suspended or paying fees for driving without it. 

Auto rates can be affected by factors such as age, gender, driving experience, credit history, your car’s garaging location etc. These genuine key factors help us rate a unique policy for you based on these basic characteristics. It is important to know the difference between standard and non-standard auto coverage when you are shopping for insurance. The main difference is the level of risk associated with those who are covered under standard and non-standard insurance. 

Standard insurance is for those who present a standard risk. For example, if you are financing, leasing, or have a loan on a car, you need full coverage, whereas non-standard auto insurance describes drivers who are risky for auto insurance companies to cover at a normal rate. For example: people who have traffic violations, speeding tickets, DUI and DWI history. This type of insurance is generally a lot more expensive than standard auto insurance. 

When we finish filling out an auto insurance application and we go to rate your policy, we order reports and your motor vehicle record to assess the risk you would present to the company. This allows us to see any past history of traffic tickets, accidents, or violations. If you lie, most likely an insurance agent will catch it prior to binding your new insurance policy with their company. This is due to underwriting that is necessary for each policy we write so that we can evaluate your specific risk category and place you accordingly with a company that insures your specific policy needs. 

In order to provide you with an accurate proposal, an experienced agent will ask you to provide a lot of information such as the following: for an accurate auto insurance quote, you should give the following information: your full name, address, and date of birth, your current auto insurance provider, your current insurance limits on an existing auto policy, the year, make and model of your car, your car’s vehicle identification number or VIN, your claims history in the past five year, if you have had any traffic violations, tickets. 

Any other questions you may have you should contact your agent so that they can answer them according to their knowledge of your policy.

Also Read: Why You Should Invest Into Life Insurance

(Disclaimer): The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.

Mary Elise Marshall
Author

Mary Elise Marshall is a licensed sales/customer service specialist for the First Florida Insurance of Ormond Beach. Her day to day tasks entail answering phone calls, policy questions, writing insurance policies, coverage, and vehicle changes, updating the system with renewals monthly, mortgage clause changes, and following up to make sure endorsements are processed correctly and in a timely manner. With nearly 2 years of experience in insurance Mary’s attention to detail, knowledge of over 30 companies procedures requirements and other policies offered by this office makes her an asset to leading insurance agencies like First Florida Insurance.

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