Auto Insurance: Answers about Coverage, Renting, and More

If I lend my car to a friend, are they and the vehicle covered by my auto insurance?

In the vast majority of cases, yes. Unless they are excluded in writing in the policy or the company says that you must inform them verbally or in writing when someone else is going to be using the automobile, anyone with your permission to drive it is covered.
However, if they will be using it for over a week, you may have to inform your auto insurance provider.

My state lets me choose either no-fault coverage or tort insurance. Which do I pick?

No-fault insurance tends to be a less expensive. However, you give up your rights to sue for pain and suffering damages. If you are not the litigious type, then that might not be a big deal.
Check and see how high the thresholds in your state are for no-fault coverage. It may be that you can get the benefit of no-fault insurance and still have your tort rights for most severe accidents.

How do I get insurance for a motorcycle?

Add a miscellaneous-type vehicle endorsement to a new or your current auto insurance. This endorsement will extend your coverage to motorcycles, scooters, mopeds, and other motorized vehicles.

A smaller insurance company is offering me a really low rate, but I'm skeptical. Could it be a scam?

It could be, but not necessarily. Smaller companies are sometimes able to offer lower costs because they don't have to pay lots of money for their large organization. However, if they do not have a national reputation, it can be harder to trust them. For instance, there are plenty of companies that have  a history of denying claims, whereas others almost never deny claims.
The size of a company is not a reliable indicator of trustworthiness, however, but it does mean that it will be easier for you to research. Check for consumer reviews online and for insurance company rankings, as well as the Better Business Bureau (BBB) ratings.  

What are the benefits to paying my auto insurance policy up front?

Well, if you can afford it, the benefits are pretty great. For one, you get a giant discount from many auto insurance companies. For another, you never have to worry about it until your contract is up.
There are rumors that it will also improve your credit rating, but nobody seems to be able to confirm nor deny this.
Think about it this way: if you know you have the money, what's the downside?

Does my auto insurance policy cover me when renting a car?

Most policies do cover you for rental vehicles. However, this coverage is being removed from many policies today because it brings down the premiums for many people. If you don't have it on your policy, it won't cost more than a dollar or two to add it onto your premium, and it is usually less than buying insurance from the rental company.
Check your policy or ask an agent to make sure.

Return to checking auto insurance quotes for your state.