10 Most Frequently Asked Questions about Auto Insurance

10 Most Frequently Asked Questions about Auto Insurance

(Responses are for State of Colorado Only)

1.       Question:  Will my policy cover me if I rent a car or borrow one from a friend?

Answer:  Typically, all coverage that you currently car on your personal auto policy, will extend    to rental car and any car you drive if you have permission to drive it from the owner. But policies can vary, so check with your agent or insurance carrier before renting or borrowing a car.

2.       Question: Why do I have to add my youthful driver when my policy will cover any driver who has my permission to drive my car?

Answer: It is unlawful (insurance fraud) in the State of Colorado to not list a driver who resides in the household.  All carriers know that when people reside together, at some point, they drive each other’s cars.  Therefore, the insurance carriers need to be able to charge for the risk.  Most carriers will allow you to ‘exclude’ a driver from your policy if they never drive a certain car and you don’t want to pay additional premium for that driver.  But make sure to have this discussion with your agent regarding all the drivers in your household, as carriers can deny coverage if all drivers aren’t disclosed.

3.       Question:  What is the difference between Comprehensive and Collision coverage?

Answer:  In the State of Colorado – Collision pays for repairs to your vehicle if damaged in an ‘at fault’ accident or if you are hit by an uninsured motorist.  Comprehensive pays for repairs to your car when the damage was not caused a fault of your own such as hail, theft, vandalism if you hit an animal.

4.        Question:  What accident should I take immediately after an accident?

Answer:  Immediately check for injuries (render immediate aid if needed) and call 911.  In Colorado this is a duty to render aid to injured parties and  report an accident .    Only if you can  safely do so …..take pictures of the angles of cars and their relationship to each other and lane  before removing them from the flow of traffic.  Only if you can safely do so…. approach other drivers and exchange insurance information, driver’s licenses, license plate numbers and write down the description of the other vehicles involved.  Once you’ve moved your car to safe place and are waiting for the police to arrive, check your car for drivability. Make sure it’s not leaking fluids of any kind and that the wheels and tires are all in tack and the steering mechanism is functioning.  If not, call a tow truck.  While waiting for the police and the tow truck to arrive, write down notes on how the accident occurred. Once you are able call your agent for assistance in getting insurance coverage questions answered regarding the accident.

5.       Question:  What exactly does the term ‘full coverage’ mean?

Answer:  Full coverage is a very ambiguous term and most insurance agents avoid using it because it confuses clients.  In general it usually refers to the vehicle carrying comprehensive and collision coverage…..  as well as liability coverage.

6.       Question:   How are auto insurance rates determined?

Answer:  Many factors are used to calculate premiums; age, sex, zip code, value of car, type of car, driving record, credit score are the major components of the rate.

7.       Question:  Will my auto policy cover while my child is a new driver with a learners permit?

 Answer:  In the State of Colorado, your auto insurance carrier must cover a driver with just a             learner’s permit.  But that driver must be physically added to the policy once the driver obtains their driver’s license.

8.        Question:  Will my auto insurance policy cover me while driving in another state?

Answer:  Yes, all states have reciprocity.  Meaning your policy will cover you even if that state has higher coverage requirements than your policy carries. The policy will pay to meet the state laws where the accident occurred.

9.       Question: Will my auto insurance policy cover me if I drive in another country?

Answer:  Almost never.  Some carriers will provide coverage if driving in Canada and some will add an endorsement to extend coverage will driving in Mexico, but always make sure to call your agent to find out how your carrier address’ this issue. 

10.    Question: Which deductible should I choose?

Answer:  We advise our clients to carry the ‘highest deductible’ you can scrap together at a moments notice as you will need to pay that amount to repair your car before the carrier will pay.  Studies have shown that clients will save money over time by carrying higher deductibles, which they may never have to use.

These are the most common questions we get from our clients there are many others we are happy to answer.  We pride ourselves on customer service.  Click here to Request a Call Back, we are happy to answer any questions you might have!