FAQs

What Auto Safety Features Can Save Me Money?

Regardless of your driving ability, you can’t always prevent an accident. There are simply too many other drivers out there. However, safe driving can greatly reduce your chances of ending up in a fender bender.

What Are My State’s Minimum Requirements?

How much auto insurance do you have to carry? The answer depends on which state you live in. The specific types and amounts of required coverage vary from one state to another.

What If I’m Unhappy With My Current Insurer?

If you feel you have been wronged by an insurance company, you may be able to file a grievance against them. The insurance regulatory agencies of most states have established procedures whereby consumers who believe they have been subjected to unfair claims handling can file a complaint against the offending insurance company.

What Are My Personal Auto Policy Options?

There are many ways to tailor your auto insurance policy coverage to your specific needs. Your state may require minimum coverage’s levels, but aside from that, you can select the coverage’s and amounts you’d like. In addition to the various coverage options, there are also general policy options.

What Information Do I Need To Supply?

It is in your best interest to give full disclosure of your personal information to an insurance company. Failure to reveal pertinent information to an insurance company is grounds for cancellation of the policy and severe misrepresentation may be grounds for prosecution.

Q: What Auto Safety Features Can Save Me Money?

A: Regardless of your driving ability, you can’t always prevent an accident. There are simply too many other drivers out there. However, safe driving can greatly reduce your chances of ending up in a fender bender. Because of this, insurance companies often allow discounts if your vehicle has certain safety features. To increase your driving safety and reduce your insurance premiums, you should consider the following accident-prevention features:

• Anti-lock brakes: 

When you slam on your brakes with a conventional brake system, the wheels can lock and cause skidding, which may cause you to lose control. Anti-lock brakes, however, automatically pump many times a second to prevent lockup, enabling you to maintain control. The overall effectiveness of anti-lock brakes is currently being debated, and the National Highway Safety Council has even noted a higher incidence of fatal crashes in cars with anti-lock brake systems. However, most experts still believe that anti-lock brakes are a good safety option and that the higher crash rate is due to people being unfamiliar with using them. The correct way to use anti-lock brakes is to apply steady pressure to the brake pedal. It is dangerous to pump anti-lock brakes. If the brake pedal starts pulsating as you hold it down, that means the brakes are working. Continue to apply the same level of pressure.

• Daytime running lights:

These lights function during daytime hours and are typically high-beam headlights at a reduced intensity. Daytime running lights make the vehicle stand out from their background making it more visible to oncoming drivers. This feature is now required in Canada and several European countries, where it’s been found to reduce daylight car-to-car crashes. If your car doesn’t have this feature, consider keeping your low-beam headlights on during the day.

• Airbags:

Upon impact, sensors trigger airbags to instantly inflate, creating a cushion between the occupant’s upper body and the steering wheel, instrument panel or windshield. Full inflation takes about 1/20 of a second, and deaths are less common in accidents where airbags have been used (20% less in frontal collisions, 15% in all crashes). Because airbags inflate with such quick force, vehicle occupants should avoid sitting with their faces or chests close to the steering wheel or dashboard. In particular, children under age 13 should always be kept in the back seat, where they won’t suffer injury or death from the forceful inflation. And remember, airbags are only effective when used along with safety belts.

• Side-impact protection:

Many auto deaths occur due to side-impact collisions. So, newer vehicles are beginning to feature side guard beams and side padding to protect passengers from side impacts. Some vehicle manufacturers offer side airbags as well.

• Head restraints:

To prevent an individual’s head from snapping back in rear-end crashes, all new passenger vehicles feature head restraints. Rear-seat head restraints are also becoming more common. A head restraint should be high enough so that it rests directly behind the back of an individual’s head.

Q: What Are My State’s Minimum Requirements?

A: Some insurance companies offer discounted rates if your vehicle has some/all of these safety features. Be sure to ask them about discounts!

How much auto insurance do you have to carry? The answer depends on which state you live in. The specific types and amounts of required coverage vary from one state to another. The table that follows provides up-to-date information on each state’s minimum requirements.

State-by-state requirements

State	Type(s) of Coverage Required	Minimum Liability Limits*
AL	Bodily Injury and Property Damage Liability (effective 6/2000)	20/40/10
AK	Bodily Injury and Property Damage Liability	50/100/25
AZ	Bodily Injury and Property Damage Liability	15/30/10
CA	Bodily Injury and Property Damage Liability, Personal Injury Protection	15/30/5
CO	Bodily Injury and Property Damage Liability, Personal Injury Protection	25/50/15
CT	Bodily Injury and Property Damage Liability, Uninsured and Underinsured Motorist	20/40/10
DE	Bodily Injury and Property Damage Liability, Personal Injury Protection	15/30/5
DC	Bodily Injury and Property Damage Liability, Uninsured Motorist	25/50/10
FL	Property Damage Liability, Personal Injury Protection	10/20/10
GA	Bodily Injury and Property Damage Liability	15/30/10
HI	Bodily Injury and Property Damage Liability, Personal Injury Protection	20/40/10
ID	Bodily Injury and Property Damage Liability	25/50/15
IL	Bodily Injury and Property Damage Liability, Uninsured Motorist	20/40/15
IN	Bodily Injury and Property Damage Liability	25/50/10
IA	Bodily Injury and Property Damage Liability	20/40/15
KS	Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist	25/50/10
KY	Bodily Injury and Property Damage Liability, Personal Injury Protection	25/50/10
LA	Bodily Injury and Property Damage Liability	10/20/10
ME	Bodily Injury and Property Damage Liability, Uninsured Motorist	50/100/25
MD	Bodily Injury and Property Damage Liability, Personal Injury Protection (may be waived for policyholder but compulsory for passengers), Uninsured Motorist	20/40/10
MA	Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist	20/40/5
MI	Bodily Injury and Property Damage Liability, Personal Injury Protection	20/40/10
MN	Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured and Underinsured Motorist	30/60/10
MS	Financial Responsibility Only	10/20/5
MO	Bodily Injury and Property Damage Liability, Underinsured Motorist	25/50/10
MT	Bodily Injury and Property Damage Liability	25/50/10
NE	Bodily Injury and Property Damage Liability	25/50/25
NV	Bodily Injury and Property Damage Liability	15/30/10
NH	Financial Responsibility Only	25/50/25
NJ	Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist	15/30/5
NM	Bodily Injury and Property Damage Liability	25/50/10
NY	Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist	25/50/10
NC	Bodily Injury and Property Damage Liability	25/50/15
ND	Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist	25/50/25
OH	Bodily Injury and Property Damage Liability	12.5/25/7.5
OK	Bodily Injury and Property Damage Liability	10/20/10
OR	Bodily Injury and Property Damage Liability, Personal Injury Protection, Uninsured Motorist	25/50/10
PA	Bodily Injury and Property Damage Liability, Medical Payments	15/30/5
RI	Bodily Injury and Property Damage Liability, Uninsured Motorist	25/50/25
SC	Bodily Injury and Property Damage Liability, Uninsured Motorist	15/30/10
SD	Bodily Injury and Property Damage Liability, Uninsured Motorist	25/50/25
TN	Financial Responsibility Only	25/50/10
TX	Bodily Injury and Property Damage Liability	20/40/15
UT	Bodily Injury and Property Damage Liability, Personal Injury Protection	25/50/15
VT	Bodily Injury and Property Damage Liability, Uninsured and Underinsured Motorist	25/50/10
VA	Bodily Injury and Property Damage Liability, Uninsured Motorist	25/50/20
WA	Bodily Injury and Property Damage Liability	25/50/10
WV	Bodily Injury and Property Damage Liability, Uninsured Motorist	20/40/10
WI	Financial Responsibility Only, Uninsured Motorist	25/50/10
WY	Bodily Injury and Property Damage Liability	25/50/20

* The first two figures refer to bodily injury liability limits and the third figure refers to the property damage liability limit. For example, 20/40/10 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 for the entire accident, and $10,000 worth of coverage for property damage. The state minimums are based on the most current information available. You should check your specific state requirements to verify these figures.

Q:What If I’m Unhappy With My Current Insurer?

A: If you feel you have been wronged by an insurance company, you may be able to file a grievance against them. The insurance regulatory agencies of most states have established procedures whereby consumers who believe they have been subjected to unfair claims handling can file a complaint against the offending insurance company.

Insurance companies in the United States are primarily regulated by individual states. There is no federal regulatory agency overseeing insurance companies. Most states regulate the conduct of insurance companies to ensure fairness in the way companies deal with applicants for insurance and policyholders. The name of the insurance regulatory agency is called something like: “Department of Insurance”, “Division of Insurance,” “Insurance Bureau.” One of the functions of a Department of Insurance is to enforce these so-called “unfair trade practices” and “unfair claims practices” laws by investigating complaints by consumers and taking action, when appropriate, to get companies to stop conduct that violates the laws and impose penalties for violations. Other duties of a Department of Insurance include reviewing and approving the policy forms used by insurance companies and approving rates charged for various types of insurance to assure compliance with state laws that regulate insurance rates.

If you file a complaint, the complaint will be investigated by the Department of Insurance to determine if the company acted properly and in a manner consistent with the state’s insurance laws, including the “unfair claims practices” laws. In some cases, the investigation may cause an insurance company to reevaluate its handling and disposition of a claim. If a company is found to be in violation of the law, this process also may result in a fine or other penalty being imposed on the company by the Department of Insurance.

State insurance laws impose many requirements and limitations on the way insurance companies conduct their marketing, underwriting (determining which policyholders or risks to accept or reject for coverage) and rate making activities. These laws may also restrict an insurance company’s ability to cancel or discontinue coverage once a policy has been issued. In general, there are many restrictions and limitations applicable to personal or “consumer” insurance, such as personal auto, homeowners and individual or small group health insurance. There usually are fewer restrictions applicable to business and commercial insurance. The specific requirements and limitations often vary considerably from state to state.

Another primary function of each state’s Department of Insurance is to assure that insurance companies operating in the state have the financial ability to meet its obligations to pay claims. Insurance companies must meet certain financial requirements and are required to demonstrate periodically (at least annually) to a state’s Department of Insurance that they continue to meet or exceed the minimum financial requirements in order to continue to conduct business in the state. The Department of Insurance can take various actions against an insurance company that fails to conduct its business in a financially sound manner, including action to cause the company to cease operation in the state.

Meanwhile, if you are unhappy with your current company, why not get a quote from the competition?

Q: What Are My Personal Auto Policy Options?

A: There are many ways to tailor your auto insurance policy coverage to your specific needs. Your state may require minimum coverage’s levels, but aside from that, you can select the coverage’s and amounts you’d like. In addition to the various coverage options, there are also general policy options. Within certain parameters, you can make decisions here as well.

Choosing your policy period

Your insurance coverage is only in effect during the period specified in your policy. This period of time is determined when you enter into the contract with the insurer. Typically, auto policies are in effect for six months or one year terms. You may also be able to purchase auto insurance for longer or shorter periods of time.

Generally speaking, your premiums should be slightly lower when you purchase a policy with a longer period. With longer policies, the insurer can spread out the administrative costs of writing the policy over a longer period of time.

Canceling your policy

You can cancel your insurance policy at any time before its expiration date. However, be aware that most insurers have specific procedures that you must follow in order to do so. When you cancel before the end of the policy there may be a penalty, but not all auto insurers penalize you for early cancellation. Check with your insurer for more information.

Paying your premium

Most insurers give you three options for paying your insurance premium:

• Pay the entire annual or semi-annual premium up front,
• Make a down payment on the premium (often two months worth) and then divide the remainder into monthly installments, or
• Pay an equal monthly amount for 10 or 12 months.

Each payment method has pros and cons. Paying the entire amount up front might be financially impossible for you. A payment plan can be good, but insurers will charge you interest or a monthly service fee. Check with your insurer to see when and if they charge interest or fees for a payment plan.

Towing and labor coverage

Towing and labor insurance (also called Emergency Road Service coverage) is an option that provides coverage for emergency road service and towing. Under this coverage, the insurer will pay towing and labor costs incurred each time your “covered auto” or any “non-owned auto” is disabled, up to the policy limit. This coverage is available any time your vehicle breaks down and is not limited to accidents covered under your physical damage coverage.

The insurer will only pay for labor (such as changing a tire or jump-starting your car) performed at the location where your vehicle is disabled, not the repair work done at a service station.

• Covered auto: This term includes all vehicles listed on the Declarations page of your policy. It also includes any passenger vehicles that you purchase during the policy period, assuming you give notice to your insurer within 30 days after you become the owner.
• Non-owned auto: A non-owned auto is a vehicle that either you borrow or use as a substitute for your “covered auto.” A borrowed vehicle is covered as long as it is not furnished or available for your regular use. (If a vehicle is furnished for your regular use, you should be listed on that owner’s policy.) Substitute vehicles are covered when your “covered auto” is out of normal use because of breakdown, repair, servicing, loss, or destruction.

Transportation expense (rental) coverage

Optional rental coverage pays a pre-set amount per day for transportation expenses (usually a rental car) when your car is being repaired because of an accident or other damage. In order for the rental benefit to take effect, the theft or accident has to be one that is covered under the physical damage section of your policy. This coverage may or may not apply to stolen vehicles. Check with your insurer.

This coverage is often limited to $15 per day, with a maximum payout of $450. For an additional premium, the per-day and maximum limits can be increased. The coverage kicks in only when your vehicle is unusable for more than 24 hours. The payment is further limited to the period reasonably required to repair your vehicle.

Q: What Information Do I Need To Supply?

A: Always, always, it is in your best interest to give full disclosure of your personal information to an insurance company. Failure to reveal pertinent information to an insurance company is grounds for cancellation of the policy and severe misrepresentation may be grounds for prosecution. An insurance policy is a legal contract and must be entered into with honesty and seriousness.

Here are some things that you must supply to an insurance company:

• Make and model cars you own.
• How many people drive the cars.
• How old the drivers are.
• Driving records of each household member.
• Physical address where the vehicles are parked each night.
• Vehicle Identification Numbers (VIN),
• Roughly how many miles you drive each year.
• What kind of liability coverage you will need.

The insurance company will also ask you whether your vehicles have passive restraint systems or air bags, anti-lock brakes or anti-theft devices. If you have any of these you might receive a discount on your auto policy. You should also mention if you or other drivers in your household have completed safe-driving courses and if student drivers in your home are getting good grades — both of these may qualify you for discounts on your auto policy.

Once the insurance company has assembled all of the information, a premium will be quoted to you. The premium will depend on all the factors above and on the deductibles you choose.