Car insurance rates are group prices based on factors like age and location, reflecting expected claim costs.

Premiums are individual prices, starting from rates and adjusted for personal factors such as driving history.

Key factors affecting premiums:

• Age/Driving Experience: Younger (<25) and older (>65) drivers usually pay more.
• Location: High-traffic areas lead to higher premiums.
• Driving record: More violations increase costs.
• Claims history: Frequent claims raise premiums.
• Annual mileage: More driving means higher risk and cost.
• Vehicle type: Expensive-to-repair cars cost more to insure.
• Policy choices: Higher coverage limits and lower deductibles increase premiums.
• Telematics: Most companies offer optional rating plans that include your actual driving characteristics.

To help lower premiums, consider discounts for safe driving or bundling policies, and opt for higher deductibles.

For personalized conversation or quotes, contact a local State Farm agent.

Liability insurance covers costs if you're at fault in a crash, including property damage (PD) and bodily injury (BI) to others. Most states require minimum coverage. Higher limits better protect your assets since you’re responsible for damages beyond your policy. Typical liability limits are shown as three numbers (e.g., 100/300/100): per-person BI, total BI per accident, and property damage limits (all in thousands).

Collision insurance covers your car’s repair after an accident; comprehensive covers non-collision damage like theft or weather. If you own your car outright, dropping these coverages may save money but risks you paying full repair/replacement costs. Consider your car’s value versus coverage cost and deductible when deciding.

Higher deductibles lower premiums but increase out-of-pocket costs. Choose a deductible you can afford in a loss. A 2000 dollar collision deductible saves money on premium, but if an accident occurs the insured will have to pay 2000 dollars for that coverage.

Other coverages to consider:

• Uninsured/Underinsured Motorist: covers damages from drivers without adequate insurance.
• Medical Payments/Personal Injury Protection: pays medical and related expenses regardless of fault.
• Emergency Road Service: covers roadside help like towing and tire changes. Optional extras include rental reimbursement and ridesharing coverage.

Sometimes you might want to let someone else use your car, but you may wonder if it's okay or if your insurance will cover them.

Here are some common questions:

• Can my babysitter drive my kids in my car?
• Can my friend or family member borrow my car?
• Can I drive someone else’s car?
• Will my friend’s insurance pay if I damage their car?
• Do occasional drivers need to be added to my insurance?

The short answer:

You may provide permission to someone with a valid driver’s license to drive your car occasionally. However, those who drive your vehicle regularly should be reported as drivers on the policy. Check with your insurance agent if you’re unsure.

Whose insurance pays if there's damage

Usually, your insurance pays first if the person driving your car causes an accident. Their insurance might help pay medical bills or cover excess costs if your limits aren’t enough.

What should I think about before letting someone drive my car?

• Make sure the driver has a valid license.
• Don’t lend your car to someone with a bad driving record (like many accidents or DUIs) because you could be responsible if they cause a crash.
• If someone will drive your car (like a nanny or roommate), add them to your insurance policy.

How do I know what is covered?

Insurance rules can be different depending on your state and policy. Talk to your insurance agent before letting someone else drive your car or other vehicles like motorcycles, boats, or ATVs.

Use common sense and be careful. Lending your car is a big responsibility and could affect your insurance.

Why should I meet with my insurance agent?

Regular check-ins help review your coverage for life changes like income boosts or family growth. If you can’t meet in person, connect via app or email.

Where can I find my insurance information and coverage details?

Your can find your coverage information on the Declarations document sent to you by your insurance company or your Mobile App. ID cards are also sent to provide the legally required proof of insurance, however they don’t usually provide specific coverage details. 

Can I bundle policies and get a discount?

Yes, bundling auto and homeowner’s policies often earns discounts. Safe driving may also qualify you for savings. Ask your agent for details.

How do claims work?

Insurers will reimburse for losses incurred as a result of an accident subject to the policy provisions. 

Where can I learn more about insurance and finances?

Talk to your agent or explore resources like Simple Insights and apps such as Drive Safe & Save® for tips on driving and savings.

Can I make changes to my insurance policy?

Yes, changes can be made anytime due to budget shifts, moving, family changes, or buying a home. Your agent can help adjust coverage.

What does my auto policy cover?

Coverage requirements vary by state and by financing institutions (if a loan or lease is on the vehicle). Most states require Liability Coverages and Uninsured/Underinsured Motorist Coverages. Optional coverages include Medical Payments Coverage, Collision, Comprehensive, and Emergency Road Service.

What should I do if I get in a car accident?

Ensure safety, call the police, exchange insurance info using your ID card, and notify your agent promptly.

Renters insurance protects your personal belongings and provides liability coverage, which landlord insurance doesn’t cover. It’s affordable—around $15/month for $35,000 in property coverage—and often required by landlords.

To determine how much coverage you need:

• Inventory your possessions with details and photos.
• Choose a deductible you can afford; higher deductibles lower premiums but increase out-of-pocket costs.
• Typical liability coverage is $100,000, but increase it if you have significant assets or frequently host guests.
• Be aware some perils (e.g., earthquakes, floods) and valuables have limited or no coverage; consider additional policies if needed.

Rates vary by location and property safety; having fire detectors or extinguishers may lower costs. Ask your agent about discounts, especially for bundling with other policies.