A typical individual auto insurance policy covers collision and liability. The limits of your coverage are based on what makes sense for you. Continue reading to find the answers to some frequently asked questions auto insurance policy owners have asked.
Does my auto insurance cover me if I rent a car?
When you rent a car, the rental company will usually offer liability and damage coverage through insurance that you can purchase from the company. It isn’t always necessary to purchase this coverage, as most standard auto policies extend their coverage limits to any vehicle driven on occasion. Whether or not you are covered will vary policy to policy. We recommend checking with us to see if your policy covers the rental so you can potentially avoid unnecessary changes.
Does my auto insurance cover damages if I lend my car to someone else?
Your auto insurance policy is for the car, not the driver, meaning your auto insurance will cover damages incurred by a friend or family member borrowing your car, up to your policy limit. The driver’s auto insurance serves as secondary coverage, kicking in after the limits of your policy have already been reached. Take a deeper look at some of the many factors driving the rate fluctuations in auto coverage with our interactive infographic.
Why did my auto rates go up when I haven’t had a claim and my car is getting older?
Auto insurance rates fluctuate, driven by a variety of factors. There are more cars on the road than ever before, leading to an increase in accidents and in costly claims, and an industry-wide rise in car insurance rates. Also, new technology in cars today increases repair costs.
How much auto insurance do I need?
Your auto insurance needs depend on a variety of factors. Minimum requirements are set by your state of residence, but it’s important to keep in mind your driving habits, the age of your car and if you want a higher or lower deductible, among other factors. For example, if you have a newer vehicle, you may want to consider new car replacement or original equipment manufacturer parts coverage.
Will my auto insurance pay for a rental if my car is in the shop?
Your auto insurance will pay for the cost of a rental only if you selected rental reimbursement coverage in your policy. The Hanover’s Ultimate Rental feature pays your daily rental limit for as long as it takes to repair or replace your vehicle, up to $3,000. You can also add a rental coverage upgrade endorsement, which allows you to choose a luxury car or large SUV rental. Talk to your insurance agent to discuss your auto policy options for rental car coverage. *
Am I covered if my car breaks down?
Your auto policy generally won’t cover a car’s mechanical failure, if it’s not due to a collision or vandalism. If your car breaks down, check to see if it’s still under warranty to save on repairs.
What coverage do I need if my car is leased?
When you lease a car, you’re driving a vehicle that belongs to someone else and you will need to have your own insurance policy. Generally, a lessee needs to have liability, collision and comprehensive insurance, often with higher limits than a car owner would typically have. The requirements vary by state, so consult with your independent insurance agent to find out exactly what you need.
What’s the difference between liability and full coverage insurance?
Liability coverage auto insurance insures against the damage you could cause to other people or their property in the event of an accident for which you are at fault. Full coverage auto insurance includes liability, but also includes collision and comprehensive coverage. Collision coverage covers the cost of damage to your vehicle in a collision for which you are at fault. Comprehensive coverage covers damage to your vehicle caused by weather, theft, animals, vandalism or other non-collision events.
How much does auto insurance cost? What factors affect my rates?
Your auto insurance premium is dependent upon a variety of factors. Variables include location, vehicle and personal driving habits, among others. Your premium will also depend on your coverage selections. Contact an independent insurance agent for a personalized quote.
How can I get discounts on my auto insurance?
Many insurance companies offer different types of discounts on auto insurance. The Hanover offers a variety of discounts on auto insurance, including:
- Paid-in-full discount on new auto policies
- Anti-theft devices discounts
- Safety features
- Multi-car discount
- Prior carrier discount
- Good student discount
- Student away at school discount
Many times, carriers will offer a discount when both your auto and home premiums are insured with the carrier. Contact Members Assurance Property & Casualty to learn more about discounts.* (757) 523-5352
*Credit and discount availability varies by state