Answers to common auto insurance questions regarding policy limits, deductibles, discounts, claims, and state requirements.
These numbers represent your split liability limits in thousands of dollars: The first number ($100,000) is the maximum bodily injury payout for one injured person. The second number ($300,000) is the maximum bodily injury payout per accident for all injured people combined. The third number ($100,000) is the maximum property damage payout for vehicles or structures damaged in that crash.
If your vehicle is paid off (no active loan or lease) and its market value drops below roughly $3,000 to $4,000, the annual cost of collision and comprehensive premiums plus your deductible may exceed the maximum payout you would receive after a total loss. In such cases, many motorists choose to maintain liability-only coverage.
If you carry Uninsured Motorist Bodily Injury and Uninsured Motorist Property Damage or Collision coverage, your own insurance carrier steps in to pay medical bills and repair your vehicle up to your policy limits, typically with a reduced deductible.
Non-owner auto insurance is a liability-only policy designed for individuals who do not own a vehicle of their own but frequently borrow friends' cars, rent automobiles, or need to satisfy an SR-22 certificate requirement to reinstate their driver's license.
In most US states, auto insurers use a credit-based insurance score as a significant underwriting factor. Actuarial data shows a statistical correlation between credit stability and claim frequency. A few states (such as California, Hawaii, Massachusetts, and Michigan) restrict or prohibit the use of credit scores in auto rate setting.
No. Standard personal auto policies contain a commercial livery exclusion that denies coverage while your app is turned on and searching for passengers or deliveries. You must add a specific rideshare endorsement or maintain a commercial policy.
