How can I reduce the cost of my car insurance? 

Here are some of the most common things you can do to help the cost of your car insurance:

• Maintain a safe driving & accident record. 
• Share a “household policy”, where all drivers and vehicles, that live in your home, are on the same policy and earn multi-car and sometimes multi-driver discounts.  
• If you have more than one insurance policy, like an auto, home, boat, toys, try to bundle them one insurance company.
• Evaluate increasing your deductibles or reducing older vehicles to “liability only”. 
• Try a driver-habit-monitoring program (ask your agent). 

MAKE SURE YOUR AGENT KNOWS: If you have a AAA membership, if you drive limited miles, or if you would like to review all the optional discounts with your insurance company. 

How much car insurance do I need?

Whether you own a vehicle or not, if you are driving, you are required to show proof of Financial Responsibility.  If you cause an accident, it is your responsibility to pay for the damage.

Liability Insurance with the minimum limits of $25,000 bodily injury per person and $50,000 bodily injury per the entire accident and $10,000 property damage is what is required in Washington State.  Each state may have a slightly different level of coverage required.  Liability insurance is what you are required to carry, in most states. 

Can I loan my car to someone, AND, will my insurance cover them?

Have you heard the saying “insurance follows the vehicle” or “permissive use”? That means that when you are lending your car to someone, you are also lending them your car insurance as the primary coverage (even if they have insurance).   That being said, there are some cases where insurance will DENY to pay a claim.  Check with your agent about these circumstances:

• The person you are loaning the car to lives with you; and is not listed on your insurance. 
  
  
• The car will be staying at their house, indefinitely. 

What is a deductible?

The amount of money the policy holder must pay out of pocket, before insurance coverage starts, is a deductible.

Do I have to buy insurance from a Rental Car company? 

Rental Car companies typically require that you have minimal coverage to rent their vehicles.  They will have insurance that you can purchase, but, if your policy includes the minimal coverage requirements, your insurance policy will often cover you to rent cars.  However, if you choose to reject their insurance and use your own, there are some gaps that your insurance will not usually pay for:

• Causing damage to the rental car may prohibit them from renting it at full value, and you could be responsible for the depreciation.
  
  
• Loss of Use/Income. If you damage the rental car, requiring it to be out of service during repairs, you could be responsible for the rental agencies loss of income for those days.

Will my insurance cover me in Mexico and/or Canada? 

For Mexico: Most typical car insurance policies will not cover you to drive in Mexico.  That being said, talk to your insurance agent to find out if there is an add-on or trip policy to insure you in Mexico.

For Canada: In is common that US car insurance policies will cover you while driving in Canada. It’s best to bring your full Declaration Page showing all of your coverage, when traveling to Canada.

Will my car insurance cover a moving truck?

Most commonly, your car insurance will not cover you to rent a moving truck or trailer.  Policies often exclude coverage for anything over a 1-ton vehicle, renting vehicles for business use or motorcycles.  

Will my car insurance cover me while I’m delivering for Uber or Lyft?

No.  If you are delivering for Uber, Lyft, pizza or providing other delivery services, talk to your insurance agent.  There is often an add-on to your insurance that may allow some coverage for you.  

What kind of discounts can I get on my car insurance? 

Most insurance companies have discounts specific to them, but here are the most common discounts available:

• Accident or violation-free or safe driver
• Low miles (often under 8000 miles driven per year)
• The “multi”: multi-car, multi-driver, multi-policies with the same company
• Pay in full and/or setting up auto pay
• Longevity or Loyalty with the same insurance company
• Driver-habit-monitoring programs

Why did my car insurance increase?

*COMING SOON

What is “Full Coverage” car insurance?

We  avoid using the term “full coverage” because it means different things to different people.  

• What it IS: Liability with Comprehensive (theft, fire, vandalism, glass damage, falling objects, hitting an animal) and Collision (physical damage caused by the driver). That’s it.
  
  
• What it is NOT (unless specifically requested): Uninsured Motorist Coverage, Personal Injury Protection, Rental Car, Roadside Assistance or any other extras.

What is Personal Injury Protection? 

Personal Injury Protection (PIP) is an optional coverage to add to your insurance.  It is a no-fault medical insurance for you, and/or your passengers, in the event of an accident.  The fault of the accident doesn’t matter.  There is not a deductible in using PIP and it also can help with costs for lost income, assistanc

Washington PIP has a $10,000 or $35,000 per person option. 

Some states have “Medical Payments” instead of PIP. 

TIP: It is not automatically part of “full coverage”, so, make sure you add this coverage if it’s important to you. 

What is Rental Car Coverage? 

As an optional add on to your car insurance, Rental Car will help with the cost of renting a vehicle, if yours is in the shop due to an accident or other covered loss. 

TIP: With the inflated costs of renting a vehicle, make sure to ask your agent for at least the $50 per day option. 

TIP: It is not automatically part of “full coverage”, so, make sure you add this coverage if it’s important to you. 

What is Roadside Assistance?

This optional coverage is services to help when you are stranded.  Some of those services include, towing, flat repair, lock out, needing fluid, dead battery.   

TIP: It is not automatically part of “full coverage”, so, make sure you add this coverage if it’s important to you. 

What is Uninsured Motorist Coverage?

An Uninsured Motorist is a person driving without liability car insurance.  If an uninsured driver hits you, having this coverage will help you pay for medical bills or property damage as a result of that accident.  

TIP: It is not automatically part of “full coverage”, so, make sure you add this coverage if it’s important to you. 

What is a CLUE Report?

Comprehensive Loss Underwriting Exchange (CLUE) contains up to seven years of claims history, and helps insurance companies evaluate you as a potential insured.

Will my car insurance pay for property stolen out of my car? 

The quick answer is no.  Personal property, like your laptop, purse or wallet, cell phone or any other personal belongings, would need a property insurance policy; Renters Insurance or Home Insurance. 

Do I have to keep a paper copy of my insurance card? 

No.  An electronic copy is acceptable.  All 50 states require police officers to accept digital proof of insurance.  Saving a picture of your ID Card, using your insurance carrier’s mobile app, or pulling up a PDF in your email, are all ways to accessing your insurance card. 

Why is my friend’s insurance less (or more) than mine?  

This is a hard question and you may not enjoy our answer. Comparing insurance prices is like comparing the cost of utilities, the cost of grocery bills or the cost of your skincare routine.  There is no household, or insurance score, like yours.

This score is made up of so many factors, that include: style of vehicle or home, zip code, age, education, years with your current insurance company and the limits of liability that you carry, credit score, miles driven per year, number of vehicles, number of drivers and so much more.  

Do Red Light tickets impact my car insurance rates?

Upcoming FAQs:

Is there such a thing as Pay-Per-Mile insurance?

What if I buy a car when my insurance company is closed? 

What is storage coverage for my car?

Does my home insurance cover my car while it’s parked in the garage?  

If you have any other questions that we can answer, or clarify, please share with us!  You can reach Lisa via email: info@northtowninsurance.com  

Disclaimer: This is a general overview, with the intention of bringing awareness to coverages, options, policy information.  However, coverage varies between carriers and states.  Please check your policy for specifics.