Auto Insurance FAQ

Auto Insurance FAQ

Type: State:

What happens if I have a lapse of liability insurance?
Whenever your liability coverage is canceled or nonrenewed, your insurance company is required to notify the State Department of Motor Vehicles (DMV). The DMV is required to notify you when they receive the notification. If there is a penalty, the DMV will advise you of such and what action, if any, that you need to take.

Will my policy provide the required liability coverage when traveling to other states?

Yes, your policy will automatically meet the minimum requirements of other states in which you are traveling.

What about driving in Canada and Mexico?
Your policy will cover you and meet the requirements of Canada. Your policy WILL NOT cover you in Mexico. In the border states, you can purchase Mexican liability policies from agents who specialize in it.

Are family members covered by my policy?

Yes, family members are insured under your policy. A family member is defined in your policy as a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child. Please note these family members should be listed as drivers under your policy.

Do I need to purchase coverage when I rent a car?

Under certain conditions, your automobile policy may provide coverage while using a rental vehicle. However, contact your agent for specifics.

Is flood damage covered?

Yes, if you have purchased Other Than Collision (Comprehensive) coverage.

Are cell phones and stereo equipment covered?

Stereo equipment, cell phones, televisions, scanners, and other media may be covered under certain conditions. You should check with your agent to make sure you are properly covered.

How much auto insurance do I need?
Most states require you to carry a minimum amount of liability insurance and also provide proof of insurance to register a vehicle or renew your license. In the case of an accident, the minimum liability insurance required by the state may not be enough coverage to pay for the damages that result after an accident. In this case, the driver responsible for the accident may have to pay additional expenses out of pocket. To determine how much auto insurance you need, consider:

  • The value of your assets
  • How and when you drive
  • What you drive
  • Who is in the car with you

How much auto insurance does my state require?
To ensure everyone on the road is covered in case of an accident, most states require drivers to carry a minimum amount of liability insurance, or establish financial responsibility in some other way. Drivers must also have the ability to provide proof of insurance to register or renew a driver’s license. This is the case for cars, trucks, motorcycles and commercial vehicles. You may want to consult with your Farmers agent and visit to learn about your state’s unique requirements.

How can I compare auto insurance quotes?
Looking for auto insurance quotes can be confusing. When you get an auto insurance quote from Insurance Karma, we will guide you every step of the way to help you choose the amount of insurance that you determine to best fit your needs. Insurance Karma also compare rates with other top companies in just minutes to see who is offering the best price.

How do insurance companies assess my risk?
Insurance companies assess your risk by using a Risk Assessment Indicator, which is a numerical score based on credit report information. These Risk Assessment Indicators are highly predictive of future claim activities, helping insurance companies charge a rate that is appropriate for the risk of the insured individual.

What can I do to lower my auto insurance costs?
While there are a number of factors that contribute to the cost of your premium, there are some things you can do to help reduce it. The car you drive will greatly affect your premium. To lower your auto insurance costs, you may consider switching automobiles and driving a safer, slightly older or less valuable vehicle. The more your vehicle is worth, the more it can cost to insure it. If you don’t want to change cars, you can modify your vehicle to make it safer or lower-risk by adding anti-theft devices or features like anti-lock brakes. In addition, selecting a higher deductible and ensuring that your coverage doesn’t lapse may help you keep your auto insurance costs down.
If you don’t want to change or modify your car, you can also consider changing your driving habits. Your driving record is one of the most important factors considered when determining your premium. You can also try cutting down on the miles you drive and getting other insurance policies with Farmers to save you money.

How do I find the best auto insurance for me?
Deciding on an auto insurance policy can seem overwhelming. It is important to choose a local agent who can help match you with just the right coverage for you and your vehicle. When getting an auto insurance quote from Farmers, a local Farmers agent will help you every step of the way to choose an auto insurance policy that makes sense for you.

How do I find the lowest auto insurance rate for me?
To find the most affordable auto insurance policy for you, take the time to compare insurance providers to see who can save you the most money while providing you the most value. Many insurance companies combine low rates with discounts to provide lower premiums for young drivers. Insurance companies even offer a Good Student Discount for qualifying young drivers with good grades. And drivers who have multiple insurance policies with Farmers can save, as well.

Why do insurance companies use my prior insurance information?
Some insurance companies may review your history of insurance coverage with previous auto carriers to determine whether you qualify for coverage and others may use it to establish your premium or to determine whether you are eligible for discounts. This information also verifies whether you have had continuous auto liability insurance coverage and your prior liability coverage limits. Prior insurance information is often used to predict the likelihood of future accidents and coverage lapses.

When I buy an additional car or replace a car, is the new car covered automatically?
Yes, as long as you notify the insurance company within 30 days after acquiring a new vehicle. Additional vehicles will have the broadest coverage of any vehicle listed on your policy. Replacement vehicles will have the same coverage as the vehicle it replaced. If you do not notify the company within 30 days, there will be no automatic coverage.

What happens if I drop coverage on a financed vehicle?
First, it is a violation of your finance contract and may put your loan in jeopardy. Second, the lender could place single interest coverage on the vehicle and add the premium to the loan. The coverage is expensive and does not provide any coverage for you.

What if I buy a motorcycle?
The automobile policy, if not amended, does not provide any coverage. You can endorse your policy so that it will extend the coverages to your motorcycle and/or you may purchase a separate motorcycle policy.

Does my liability insurance cover using my vehicle in service of a Transportation Network Company (TNC) such as Uber and Lyft?
No, the automobile policy contract does not cover for liability arising out of the ownership or operation of a vehicle while it is being used as a public livery or conveyance. This includes but is not limited to any period of time that insured is logged into a TNC as a driver, whether or not a passenger is occupying the vehicle