Car Insurance FAQ

If someone else drives my car, are they covered by my car insurance?

Since car insurance actually covers the car, not just the drivers, yes. In most cases. Sometimes, however, a car insurance provider requires verbal or written notification that a person not on the policy will be using the vehicle. Normally, anyone with your permission to drive the vehicle should be covered, unless they will be using it for a week or more.

People who will be regularly using the vehicle must be added to the policy.

How do I know if a small insurance company is scamming me? The rate they are offering is much lower than other offers.

When one company that you aren't really familiar with offers you an incredibly low rate, especially from car insurance quotes, it is good to be skeptical. However, it is not necessarily a scam. Many small companies do offer lower rates than competitors because they have more flexibility in their organization and perhaps can afford to offer lower costs to attract business.

To find out if you are being scammed, research the company on the internet. See if anyone else has heard of them or reported them for scams. If you can't find any information about them or they don't even have a credible website, it is most likely a scam.

You can check any insurance provider's trustworthiness by using the Better Business Bureau ratings.

Will paying my insurance premiums all at once up front save me money?

Most companies will give you a very good discount if you pay a whole year up front, since there is no longer the chance that you will not pay them, lapse coverage, or switch.

As an added bonus, there is no longer any chance of you forgetting to pay. It is a lot more convenience this way, so as long as you have the money, go for it. It may even be good for your credit score.

Do I need to get rental insurance, or will my regular car insurance cover me?

Most standard policy coverage packages will include rental coverage. However, with cheap car insurance deals, rental coverage is often trimmed off to save as much money as possible. To find out, talk to your car insurance agent.

There is also a good chance that you have rental insurance through your credit card company. So, as long as you use the credit card to pay the rental fees, you should not need to buy extra coverage. Check with your credit card company to find out.

Worst case scenario, you can add rental coverage onto your car insurance policy for a few bucks or simply buy the insurance through the renter.

How often should I check car insurance quotes? Should I switch if I find a better deal?

You should be checking for car insurance quotes at least once a year. Additionally, if one of the factors in your car insurance rate changes, such as the vehicle you drive, your accident history, or where you live, get car insurance quotes.
It's fine to switch anytime, as long as you don't have to pay penalties for terminating a policy. However, factor in customer loyalty discounts.