If you have questions about car insurance but not a lot of time to research, check out these brief responses to common questions.
Q: If my friend borrows my car and crashes it, whose insurance pays?
A: Yours does, because you own the car. Sorry.
Q: What are the best ways to save money on car insurance?
A: Shop around to compare car insurance rates and bundle policies.
Q: What is “bundling” of insurance?
A: It’s buying at least two policies from the same company.
Q: How much will my rates go up if I cause a car accident?
A: About $800 in California, for example. Increases vary by state.
Q: Who are the best car insurance companies?
A: Amica, Erie and Auto-Owners, according to NerdWallet’s rankings.
» MORE: The best car insurance companies
Q: Who has the cheapest auto insurance?
A: Often Geico, among the largest insurers. But shop around.
Q: I was rear-ended. The other guy says I slammed on my brakes and caused the accident. Whose fault is it?
A: The other person’s. Make a claim against his insurance.
Q: When do teen drivers have to be added to insurance?
A: Typically, when the teen gets a driver’s license. Save up!
Q: Is it cheaper to add teen drivers to a parent’s auto insurance or get them their own policy?
A: It’s usually cheaper to put them on a parent’s policy.
» MORE: Finding the cheapest car insurance for teens
Q: Can I buy insurance in one state even though I live in another?
A: No. Buy insurance where the car is “garaged.”
Q: Do I need a driver’s license in order to buy car insurance?
A: Yes. If the license is suspended, you’ll probably be dropped.
Q: Can my auto insurer cancel me before the end of the policy?
A: Only for certain reasons, like not paying premiums or fraud.
Q: What is “full coverage car insurance”?
A: It generally means you have liability, comprehensive and collision coverage.
Q: If I have full coverage car insurance and rent a car, do I still need rental car insurance?
A: No. Your personal auto insurance usually extends to a rental.
Q: Can my auto insurer make me use a certain body shop?
A: That is barred by most states under “anti-steering” laws.
Q: Where can I make a complaint about my auto insurance company?
A: Your state department of insurance is the right place.
» MORE: Find the best cheap car insurance
Amy Danise is an insurance expert at NerdWallet, a personal finance website. Email: adanise@nerdwallet.com.
This article was written by NerdWallet and was originally published by USA Today.
