Common questions about auto insurance

Every state except New Hampshire requires liability insurance. The minimum varies—California requires 15/30/5 ($15K per person, $30K per accident for bodily injury, $5K for property damage), while many states require more. These minimums are often inadequate for serious accidents. Most experts recommend at least 100/300/100.

Driving without insurance is illegal in most states and can result in fines, license suspension, and even jail time. If your insurance lapses, your rates will likely increase when you get coverage again. Many states also require you to file an SR-22 (proof of financial responsibility) after a lapse, which adds costs and complications.

It depends on the cost of repairs versus your deductible. If repairs cost $800 and your deductible is $500, you'd only receive $300 from insurance—and filing the claim could increase your rates for 3-5 years. For minor damage, it often makes more sense to pay out of pocket.

If you have comprehensive and collision on your own car, those coverages typically extend to rental cars. Your liability coverage also applies. However, there may be gaps—check with your insurer and consider the rental company's coverage for things like "loss of use" charges.

At least once a year, and especially after major life changes (moving, getting married, buying a new car, adding a teen driver). Rates vary significantly between insurers, and the cheapest company today might not be the cheapest next year.

An SR-22 is a certificate proving you carry auto insurance. It's required after serious violations like DUI, driving without insurance, or multiple at-fault accidents. The SR-22 itself isn't insurance—it's filed by your insurer with the state. You'll typically need it for 3 years, and it significantly increases your premiums.

No, auto insurance doesn't cover personal belongings like laptops or phones stolen from your car. These would be covered by your homeowners or renters insurance, subject to your deductible. Some policies have limits on electronics or may exclude items stolen from vehicles.

Yes, but you'll pay more. Some insurers specialize in high-risk drivers. If you've had multiple violations, consider taking a defensive driving course, maintaining continuous coverage, and shopping around—rates for the same driver can vary by hundreds of dollars between companies.

Actual cash value (ACV) pays what your car is worth today, factoring in depreciation. Replacement cost would pay to replace your car with a similar model—but most auto policies use ACV. For a new car, consider gap insurance to cover the difference between ACV and what you owe on your loan.

Yes, you should strongly consider it. About 1 in 8 drivers is uninsured nationally, and even more are underinsured. If an uninsured driver hits you, without UM/UIM coverage, you'd have to pay your own medical bills and car repairs—or try to sue the other driver (who likely has no assets).