How does where I live affect my premium?
Where your car is kept directly affects your chances of having an accident or becoming a victim of theft or vandalism. The likelihood of encountering these problems increases in larger, more densely populated cities, while such incidents remain relatively low in rural areas.

Additionally, regional insurance, rates are affected by time and efficiency of police response and law enforcement, local road and traffic conditions and the quality of local medical services. Insurers even factor in the litigation rates in a given area (how many lawsuits are filed, go to trial, are settled out of court and for how much.)

Do all states require some type of liability insurance?
No. While not all states require auto insurance, some have "financial responsibility laws” mandating all drivers must be able to pay for any damage or injury they may cause. However, liability insurance is still the best way for you to meet your state's financial responsibility requirements.

UM and UM policies are offered by law in all states, including no-fault states. In fact, some states require all motorists to carry this coverage in order to gain protection from inadequate insurance coverage of other drivers.

How do I keep my insurance company from canceling my policy?
Besides maintaining a clean driving record, consider investing in special safety and security features for your car. If you have been in an accident, consider taking a defensive driving course. Your insurance agent may be able to provide other tips.

What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?
Yes. Liability and coverage for physical damage (i.e., comprehensive and collision) always follow your car. So, if a friend borrows your car and has an accident. you're still protected against the cost of damages or injuries. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.
The same rules apply when you borrow someone else's vehicle -- your own insurance follows you no matter whose car you are driving. But the vehicle owner's policy is the key. coverage if you have an accident.

Am I covered for natural disasters or "Acts of God?"
Comprehensive insurance. which covers you for fire and theft, generally covers you against damage by flood. Earthquake, hail and other natural perils. except when your car is overturned (which is technically considered a collision). If you have specific concerns about the safety of your vehicle in natural disasters, contact your agent for information on catastrophic coverage.

How can I challenge my insurers if they refuse to cover a claim?
Usually, insurers that refuse to cover a claim have a strong legal reason for doing so -- even if you disagree. First, contact your agent if you feel you are being treated unfairly because your agent is your strongest advocate in insurance matters. But if it is a legal problem. you may have to hire a lawyer.

Talk to your agent if you have a problem with your insurer, and talk to your state insurance department if you want more specific information on state regulations and legal precedents.

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