Frequently Asked Questions (FAQs)

There’s a lot to know about auto insurance; it can sometimes be difficult sorting through all the information available. We've compiled some of the most frequently asked auto insurance questions on the web. The answers to the following questions should only be considered guidelines, as they can differ by state and individual insurance company. To get the most accurate answer, check with your local authorized auto insurance agent.

How much auto insurance should I purchase?
What vehicles are cheapest to insure?
Does your insurance cover you when driving someone else's vehicle?
Are you covered by a family member's insurance when driving a car?
What is no-fault insurance?
Can you insure someone else's vehicle?
Can auto insurance companies demand information about the people who live with you?
Can you get new auto insurance if you let your old policy expire?

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How much auto insurance should I purchase?

The amount of auto insurance you purchase depends on several factors. Your deductible, and are all factors important in determining your coverage and your premiums. But generally speaking, you should purchase an amount that adequately covers you and your assets. The Insurance Information Institute (III) recommends that you have $100,000 of bodily injury protection per person and $300,000 per accident. They suggest that if you have assets and investments worth more than $300,000, you should consider additional laibility insurance. This will protect you in the case you will have to pay medical and/or legal expenses.

What vehicles are cheapest to insure?

The cheapest vehicles to insure are those that have low crash and theft costs. This includes vehicles that are perceived as safe and sensible, such as a small sedan. Vehicles with a lot of safety features, such as automatic seat belts or anti-lock brakes, are also more affordable to insure. Review our page on types of vehicles to find out more.

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Does your insurance cover you when driving someone else’s vehicle?

Each state has different policies concerning insured drivers operating other people’s vehicles. In some cases, the other person’s insurance might cover you or any other licensed driver operating the vehicle.

Are you covered by a family member’s auto insurance when driving their car?

You might be, but not necessarily. Unless you are specifically named on that person’s policy, you might not be covered when driving their vehicle.

When another driver, not named on the vehicle’s insurance policy, is driving, which insurance applies?

In most cases it is the vehicle’s insurance that applies in the event of an accident.

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What is no-fault insurance?

No-fault insurance only applies in some states, and requires your own insurance policy to cover medical expenses incurred by the insured driver in the event of an accident, regardless of who caused the accident.

Can you insure someone else’s vehicle?

Yes, you can insure someone else’s vehicle as indicated in the above question. Many insurance companies actually offer a coverage option referred to as “non-owner’s” insurance, which is basic liability.

Can auto insurance companies demand information about the people who live with you?

Yes, auto insurance companies can ask you about other licensed drivers in your household, even if those drivers do not intend to drive your vehicle.

Can you get new auto insurance if you let your old policy expire?

You might not be able to secure insurance with the same company for an initial 30 day period, but you should be able to obtain coverage with a new company.

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*Auto Insurance Options is a free information resource that provides content on auto insurance products and policies for informational purposes only, but is not an agency or insurer. Products and policies may not be available in all states.