What is auto insurance?
Auto insurance is a contract between you and us that helps cover the
cost of accidents, damage, theft, and other unexpected events on the road.

We offer comprehensive protection that includes:
● Liability Coverage – Helps pay for damage or injuries you cause to others.
● Collision Coverage – Covers repairs or replacement if your vehicle is damaged in an accident.
● Comprehensive Coverage – Protects against theft, vandalism, weather events, and more.
● Personal Injury Protection (PIP) – Helps cover medical expenses regardless of fault.
● Uninsured/Underinsured Motorist Coverage – Protects you if you're hit by a driver with insufficient or no coverage.
Common Misconceptions About Auto Insurance
1. "Full coverage means everything is covered."
Reality: “Full coverage” usually includes liability, collision, and comprehensive—but it doesn’t mean you're covered for every situation. Extras like roadside assistance, rental reimbursement, or gap coverage must be added separately.
2. "The color of my car affects my insurance rate."
Reality: Insurance companies don’t care about the color of your vehicle. Rates are based on factors like your car’s make, model, age, engine size, safety features, and your driving history not its paint job.
3. "My friend’s insurance will cover them if they crash my car."
Reality: Insurance follows the car, not the driver. If someone borrows your vehicle and has an accident, it’s usually your insurance that covers the damage.
4. "Older drivers always pay more for insurance."
Reality: Older, experienced drivers with clean records often receive lower premiums. It’s younger, less experienced drivers who typically face higher rates.
5. "A small claim won’t affect my premium."
Reality: Even minor claims can lead to rate increases, depending on your claims history and your insurer’s guidelines. In some cases, paying out of pocket may save you money in the long run.
Important Facts About Auto Insurance
1. Auto insurance is required by law in most states. Most U.S. states require drivers to carry a minimum level of liability insurance to legally operate a vehicle. Driving without insurance can lead to fines, license suspension, or even vehicle impoundment.
2. Your driving record directly impacts your premium. Speeding tickets, accidents, DUIs, and other violations can raise your rates significantly. A clean driving record usually leads to lower premiums and better discounts.
3. Credit can affect your insurance rate.
In many states, insurers use credit-based insurance scores to help determine risk. Good credit can often lead to lower premiums, though this practice is restricted in some areas (like California and Massachusetts).
4. Insurance follows the car—not the driver. If someone else drives your vehicle and gets into an accident, your policy is usually the first to respond, not theirs.
5. “Full coverage” doesn’t cover everything. Many people assume full coverage means total protection, but it typically includes only liability,
collision, and comprehensive coverage. Optional add-ons like roadside assistance, rental reimbursement, and gap insurance are not included by default.
6. Comprehensive coverage protects against more than just accidents.
This type of coverage helps pay for damages from non-collision events like theft, fire, vandalism, falling objects, and natural disasters (e.g., hail, flooding).
7. You may qualify for discounts.
Many insurers offer savings for things like:
● Safe driving records
● Bundling home and auto policies
● Having anti-theft devices or safety features
● Low annual mileage
● Good student discounts (for young drivers)
8. Your car’s make and model matter.
Luxury cars, sports cars, or vehicles with high repair costs tend to be more expensive to insure. Vehicles with good safety ratings and lower repair costs are typically cheaper to insure.
9. Your location affects your rate. Urban areas with high traffic and theft rates often have higher premiums than rural areas. ZIP code matters.
10. Not all damages are automatically covered.
Auto insurance doesn’t usually cover:
● Wear and tear
● Mechanical breakdowns
● Personal belongings inside the car (unless you have separate coverage)