FAQs: Auto insurance coverage

How much insurance coverage do I need?

State laws require that you carry a minimum level of auto insurance coverage. However, with car insurance, the more coverage you have, the less it will cost you out of pocket if you get in an accident.

Your individual needs and situation will contribute to how much insurance you need. When you’re determining how much insurance to buy, here are a few factors to think about:

What type of car do you drive?

Is your car brand new? You may want to increase your auto insurance coverage to protect your investment in the event you’re involved in an accident. Do you drive a large car, truck, or SUV? Sometimes it’s smart to have higher limits because these vehicles generally generate more damage in accidents.

Do you finance or lease your car?

If you make payments on your car you may be required to have Comprehensive and Collision coverage in addition to Liability coverage.

Where do you live?

Do you live in a big city where fender benders are a common occurrence, or out in the country where you could hit a deer? If so, you make want to think about increasing your coverage to protect yourself from these common occurrences.

How much can you afford to pay out of pocket?

Choose a deductible that you know you can easily pay out of pocket. Also think about higher limits so that you don’t have to pay for it yourself if damages exceed your limits.

If you are involved in an accident, especially a serious one, the last thing you want to worry about is how you are going to pay for everything. Typically, higher limits cost only a few dollars more a month and you’ll thank yourself for investing those dollars if you’re ever in a serious accident.

If you have any questions about coverage, please call our licensed representatives at 1-855-ELEPHANT.

Do I need special auto insurance coverage if my auto is leased or financed?

Check your loan or leasing agreement for details on the auto insurance coverage your financial institution requires.

Though each lender has different requirements, most require you to buy comprehensive and collision coverage in addition to liability coverage. Many financial institutions also require higher liability limits than your state’s minimum coverage requirements. This is done to protect their interest in your loan. If you get in an accident, the financial institution may have to pay off the unpaid portion of your loan. It’s logical that they would require additional coverage to protect their interest.

Don’t skimp on auto insurance coverage for your leased or financed vehicle. Generally, higher limits cost only slightly more and you’ll be glad to have the increased protection if you’re ever involved in a serious accident.

Do all auto insurance companies offer the same coverages and discounts?

No. While the major companies offer the basic types of coverage – Liability, Property, Uninsured/Underinsured Motorist, Collision, Comprehensive, Medical Payments, etc., it’s up to you to choose if you purchase the minimum levels of coverage or increase it. Discounts and specialized coverages can differ greatly between companies. For example, not all companies offer discounts for online quotes, paperless and e-signatures, three years clean drivers, and good students, like you’ll find at Elephant.

Who regulates your insurance rates?

Every state requires auto insurance companies to file how they calculate customer rates and insurers cannot deviate from these filed rates.

What if I have a question during my free online quote?

Call 1-855-ELEPHANT and speak with one of our licensed insurance representatives. They will be able to pick up where you left off in the quote process and answer any questions you have about coverages, limits, and/or deductibles.

Can I add or remove coverages in the middle of my policy?

Yes. Call us at 1-855-ELEPHANT and an Elephant insurance representative will be able to assist you in managing your policy, which includes adding or removing vehicles and drivers, change of addresses, bill payments, and more. Keep in mind that some changes will affect your rate, so your premium may change.