Auto Insurance - FAQs

Premium Questions
Controlling Insurance Costs
Discounts
Safe Cars
Special Coverages
Collectible Auto

What is Auto Insurance?

Auto insurance helps you to protect you and your family against financial loss in the event of an accident or other cause of loss. It covers the injuries and damages caused by an accident and for which you are legally responsible. It may also cover the costs of repairing or replacing your vehicle if it is damaged or stolen.

What if I don't have car insurance?

In most states, you're required to carry a minimum amount of liability insurance (or post a bond) and also provide proof of insurance before you can license your vehicle or renew your driver's license. If you are caught driving without car insurance, you may have to pay a large fine, have your driver's license suspended, and/or have your car impounded. Contact your local Davidson agent to find out what the specific requirements are in your state.

How much auto insurance coverage should I purchase?

The required minimum coverage may not be enough to pay for all the damages that result from an accident, and the legally responsible driver will have to pay the additional expenses out of pocket. You may want to speak with an agent to discuss the best auto insurance coverage for your needs and budget.

How can I keep my auto premiums down?

Generally, the longer you drive without major citations or accidents, the lower your premium will be. You may also qualify for discounts based on safety features on your vehicle. Some insurance offers an Annual Policy which keeps your rates stable for the entire year. We calculate your insurance costs for the year, and you don't have to worry about changes for a whole 12 months. Furthermore, you can lock in your base rates, and qualify for accident forgiveness for up to 3 years. Also, if you insure additional cars or your home you can save on all your premiums.

What does "full coverage" mean?

The term full coverage generally means that the insurance policy has both liability coverage and coverage for damage to your vehicle. The term full coverage does not mean that "everything" is covered no matter what happens. Your auto insurance Policy Declaration page lists the coverage you have selected. A Davidson agent will discuss with you available coverages to help you select the insurance coverage that fits your needs and budget.

Am I covered if I drive someone else's vehicle?

Generally speaking, the insurance goes with the car. For example, if you have an accident while driving someone else's car, the owner's insurance would apply toward damages first. Your auto insurance would generally apply in the event the owner of the vehicle had no auto insurance or did not have enough auto insurance to pay the damages. For specific information and guidance on your coverage in this situation, contact your local Davidson agent.

If I rent a car, do I have coverage?

Car rental companies charge daily fees for "CDW" coverage (which means their insurance will pay for all damages covered in your rental agreement). Rental car coverage under a private passenger policy varies state by state. Check your policy or contact your local Davidson agent. Will my policy be cancelled if I have an accident? Generally, being in an accident will not cause your policy to be canceled. However, after the facts of the situation are reviewed, you may be required to pay a higher premium for your policy upon renewal. Your personal Davidson agent will help you understand the potential increases if an accident does occur.

Go to top

Premium Questions

Why do auto insurance premiums change? Auto insurance premiums change for the same reasons that the price of other goods and services you buy change. Insurance companies incur the same costs you do in buying goods and servcies, and these costs can ultimately affect your insurance premium. Costs affecting the ultimate price of auto insurance include:

• Medical costs to treat injuries
• Auto repair costs
• Costs to adjust claims
• Inflation
• Uninsured drivers (your policy pays when the other driver doesn't have an auto insurance policy if you purchase Uninsured Motorist coverage)

Although insurance companies can't directly control these costs, we regularly monitor them to see how they are affecting the costs of the claims we pay. As they change, auto premiums must be adjusted. These costs can affect your auto insurance premium whether or not you individually have had an accident or claim. Changes you make to your auto insurance policy or coverage may also change the premiums. Adding or removing a driver, buying a new car, moving to a new location or changing how you use your car may influence the cost of your auto insurance.

Go to top

Controlling Insurance Costs

• We have a network of reliable auto repair facilities for the highest quality repairs at competitive prices.
• We vigorously oppose frivolous lawsuits.
• We have an active Anti Fraud Unit.
• We offer a youth driving safety education program to all parents of young drivers.
• We actively support organizations devoted to auto safety, including funding anti-drunk driving efforts and those dedicated to improving youth driving safety.
• We offer Annual policies to keep your rates stable.
• We offer programs to lock in your rates and forgive you for accidents.

What deductible should I choose?

The higher the deductible, the lower the premium - but the more you'll pay out of pocket in case of a claim. The lower the deductible, the higher the premium - but the less you'll pay if you have an insured claim. Does the kind of car I drive influence my auto insurance rates? The car you drive can have a substantial impact on your auto insurance premium, especially the amount you pay for your comprehensive and collision coverages. The insurance rates for comprehensive and collision coverage are determined by looking at the type of vehicle loss history - how often it is stolen, and how costly it is to repair or replace after an accident.

Go to top

Discounts

What kinds of auto insurance discounts are available?

There are many auto insurance discounts to help keep your auto insurance premiums as low as possible. Discounts vary by state.Types of discounts available include:

• Accident Free: In some states you may be eligible for a discount based on your driving history.
• Good Student: Drivers under 25 years of age who are full-time students in high school or college and have good grades may qualify.
• Auto/Home: You can save money on both auto and homeowners insurance by purchasing both of these policies from Davidson.
• Multi-Car: If you own two or more vehicles and insure both of them with Davidson, you may qualify for the Multi-Car discount.
• Teen Driver: Teens who complete the Y.E.S. (You're Essential to Safety) driver safety awareness program may qualify for a discount.
• Alternative Fuel - Owners who drive hybrids and other alternative fuel vehicles may save 5% on all major coverages.

Safe Cars

What are the safest cars to drive?

Even the safest cars are dangerous if not driven safely. However, discounts are available for drivers who drive cars with air bags, anti-lock brakes, and electronic stability control.

Does my financing affect my insurance needs?

Some leasing and auto loan companies require specific levels of coverage. Your Davidson agent can assist you in determining how much coverage best suits your situation.

Go to top

 

Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.