Auto Insurance: Frequently Asked Questions

When shopping for car insurance, what do I look for?

The best car insurance policy is the one that meets your unique needs and is written by an insurance company with good claims and customer service records. An independent agent (one who has access to several insurance companies) can help you evaluate your needs and compare quotes.

• Price is only one factor with auto insurance. If you buy cheap car insurance, you may not have the protection you need at claim time.
• When choosing from among the many types of optional coverage – towing, rental car reimbursement, comprehensive and collision to name a few – consider the age of your vehicle and other factors.
• Policy features and benefits depend a great deal on the insurance company, so be sure to consider more than one company.
• Liability coverage is required by state law, but you may decide you need more than the minimum amount of protection.

What is collision insurance?

Collision car insurance is optional protection that covers damage to your car when it collides with another vehicle or object, such as a telephone pole or pothole. It may be required if you have a car loan. If you do not choose collision coverage, you may have to pay for repairs after an accident.

What is comprehensive insurance?

Commonly known as comprehensive car insurance, insurance against other damage is optional protection that includes compensation for damage from disasters such as flood, fire or hailstorms, and also pays for damage due to theft, vandalism and broken glass. It covers you if you hit a deer or other animal as well. Again, comprehensive may be required with an auto loan.

What is no-fault insurance coverage?

Minnesota law requires certain types of auto insurance coverage, and no-fault protection is one of them. Also called personal injury protection (PIP), no-fault insurance covers medical costs and lost wages for you and your family in the event of a crash. It does not consider who is responsible for the accident.

How does my credit score relate to insurance?

We are repeatedly asked what credit scores have to do with insurance premiums. When calculating costs, insurance companies study data from a wide range of sources, including credit histories of the people they insure. Research shows that drivers with high credit ratings tend to file fewer claims, while drivers with lower ratings are inclined to incur more moving violations and be involved in more car accidents. It pays to mind your credit rating since it can have a direct impact on insurance discounts you may qualify for. Please let us know if your credit rating has improved recently.

Does your personal auto policy cover rental cars?

If you have auto insurance, most of the additional coverage offered by rental car companies would transfer to a car you are renting. You may want to consider adding coverage on a rental car if your existing policy has high deductibles, or it does not include collision or comprehensive insurance. Foreign travel or renting a car for business are other considerations. For these reasons, it’s important to understand your insurance policy so you are prepared when renting a car. Don’t hesitate to contact Weir Insurance if you need help determining whether to purchase coverage on a rental car.

Does my insurance policy cover friends if I loan them my car?

Yes, your friends and associates will be covered under your auto insurance policy when they are driving your car. Of course, your family is covered as well.

How can I lower my insurance rates?

There are many ways to lower the cost of your car insurance:

• Be mindful of your credit rating, since a solid credit score can help you qualify for car insurance discounts.
• Compare auto insurance companies and look for competitive pricing.
• Consider insuring your vehicle with the same company that handles your home insurance. You may qualify for a multi-policy discount.
• Change your deductible or coverage. If you increase your deductible, car insurance premiums could go down. Likewise, consider dropping optional coverage you may have, depending on your situation. 
• If your car is equipped with certain safety features, you may qualify for additional discounts.

Contact our Mankato or Edina office and discuss your unique situation. We may help you uncover ways to save more on car insurance.