Frequently Asked Questions

Q. What is full coverage insurance?

A. "Full coverage" is a term that was created by insurance companies but doesn't truly exist. Insurance policies are made up of specific insurance coverages. "Full coverage" refers to someone who has a liability with comprehensive and collision deductible. These deductibles could be as low as $50, but as high as $2000. The deductibles could be different for each coverage. There is no such thing as a "full coverage" insurance policy that covers absolutely everything. This term is one of the most deceptive terms to dupe insureds.

Q. What determines the value of my insurance policy?

A. Your limits of bodily injury (BI) and property damage (PD) liability coverage for damage caused to other people or property hold the value of what your insurance policy will pay out to those who are affected by you having an accident with them. At a bare minimum, you need to carry the amount of car insurance required in your state. For example, in the state of Indiana as of 2/5/2024, the minimum Bodily Injury: $25,000/$50,000, Property Damage: $25,000. Other levels offered by insurance carriers are 50/100/50, 100/300/100, 250/500/250, and combined single limits.

Q. Will a not-at-fault accident effect my insurance rates?

A. Honestly, it depends. If you were involved in an accident with someone who did not have any insurance, or not enough to cover the damages, your insurance company may cover the accident if you have Uninsured/underinsured motorist coverages (UM/UIM). If this occurs it will reflect as an at-fault accident because your insurance paid out on your claim, which may affect your rates. If the insurance carrier is able to subrogate the claim and get the funds back from that individual who was actually at-fault than the claim can and should be adjusted to a not-at-fault accident, which would not affect your insurance rates. If you are in a hit-and-run accident and the insurance company doesn't know who to go after, the accident will most likely raise your premiums as well as cost you some discounts.

Q. What is an SR-22?

A. An SR-22 is a certificate your car insurance company or agent sends to the BMV to prove that you have car insurance. SR-22 filings are usually required when the Indiana BMV or a court has required someone to carry an SR-22 in order to avoid a license suspension or to lift a current license suspension so they can get reinstated. An SR-22 is not a type of car insurance, it is simply a certificate of financial responsibility for drivers who are required to provide one to the state.

Q. Are SR-22 filings Expensive?

A. SR-22 is not expensive. They are a small, one time fee that is paid at the beginning of each policy period. Your MVR, C.L.U.E. report, and why you need an SR-22 filing is what make your insurance more expensive. Also, needing an SR-22 filing can make you ineligible for certain insurance companies that might otherwise find you as a favorable risk meaning they might offer you better rates than other insurance carriers who will take you

Q. Why are the quotes that I got so different with each insurance company?

A. Auto insurance companies use many different criteria when evaluating an insurance application during a process called underwriting. Each car insurance company has guidelines for which drivers it will accept and what rates it will charge. But the factors remain the same for most insurers. The insurance company will look at many records to see how many violations a driver has received, accidents they have been involved in, credit history and more. Your final rate is a careful calculation based on the amount of risk you represent to that insurance company.

Q. Why did my insurance go up when I haven't had any tickets or accidents? Why did my rates go up when nothing has changed?

A. There are several reasons why your rates for insurance can go up when none of your personal rating factors changed. The biggest reason usually being the insurance company took losses. The losses could have been from a catastrophic event or even from them loosening their underwriting guidelines to accept more high risk drivers than they normally would and the decision backfired on them. Insurance is a sharing program. If the insurance company gambles and loses, all their insureds will pay for it. When the company you are with takes losses, they will spread those losses amongst all of their customers to recoup their losses. This is one reason why it is good to shop around. If your rates go up too high, you shop around for a policy with an insurance company that hasn't taken rate.

Q. Does car insurance cover rental cars?

A. Your personal auto policy typically covers you in a rental car, but you are covered at the same limits as your auto policy up to the terms specific to your policy, including type of vehicle rented, length of time you'll have the vehicle, where you'll be driving the vehicle.

Q. Will non-vehicle related criminal offenses impact my rates of insurance?

A. As of right now, it is not legal for insurance companies to surcharge auto insurance policies for criminal offenses that are not vehicle related. What insurance companies can do is completely deny you coverage or require you to pay your policy in full before they allow you to accept any off of insurance. Some insurance companies have been requiring potential insureds to pay in full even if their criminal record is just one low-level misdemeanor offense from 10+ years ago. We have personally seen cases of this while quoting prospects and current clients.