Author: James Shaffer

How Do AM Best Ratings Work (for Auto Insurance)?

It’s smart to assess the financial stability of your insurance company before you buy a policy. Many drivers check AM Best ratings (also written as A.M. Best) when choosing an insurance provider—especially if they want confidence the insurer can pay claims after a major storm season or a spike in repair costs. Below, we’ll break […]

What Is a Replacement Cost Policy?

A replacement cost policy is insurance that pays what it costs to replace what you lost—without subtracting depreciation. In auto insurance, this idea usually shows up as new car replacement (or a similar endorsement) that can help you replace a recently purchased vehicle after a total loss. Below, we’ll break down what “replacement cost” means, […]

Are There Fees to Cancel Car Insurance? Cancellation Fees Explained

There are plenty of reasons to cancel car insurance—maybe you’re moving to a new state, you’re switching to a cheaper company, you sold your car, or you no longer drive. But before you cancel, it’s smart to understand what it could cost. While many drivers cancel without paying a “cancellation fee,” some insurers do charge […]

The Top 15 Factors that Determine Your Auto Insurance Rates

Auto insurance companies use dozens of data points to decide what you pay. Some are major—like your driving record and where you live—while others, like certain discounts or memberships, play a smaller supporting role. Understanding these factors helps you focus on what you can actually control. While you can’t change your age or past accidents, […]

What Is UMPD Coverage? How Much Does It Cost?

Uninsured motorist property damage (UMPD) is optional car insurance coverage that can pay to repair or replace your vehicle (and sometimes other property you own) if an uninsured driver damages it. Depending on your state, UMPD may also help in certain hit and run situations—although some states only pay if the at-fault driver is identified. […]

What is UMBI Coverage? How Much Does It Cost?

Uninsured motorist bodily injury (UMBI) is optional (or required, depending on your state) auto insurance that helps pay for injury-related costs when the at-fault driver has no liability insurance—or when the driver can’t be identified in certain situations, like many hit-and-run accidents. UMBI matters because uninsured driving is still common. Recent industry estimates put the […]

Liability vs. Full Coverage: What’s the Difference?

When shopping for auto insurance, one of the biggest decisions you’ll make is whether to carry liability-only coverage or pay more for full coverage. What’s the difference between liability and full coverage car insurance? Which one actually makes sense for your car, your budget, and your risk tolerance? Below, we break down how each option […]

Can I Insure a Car That Is Not In My Name?

There are plenty of situations where you might want to insure a car that isn’t technically yours. Maybe you regularly drive a family member’s car, share a vehicle with a roommate, or borrow a friend’s car for work. So, can you insure a car that’s not in your name? The short answer: sometimes. In most […]

What Is Misrepresentation in Car Insurance?

In car insurance, misrepresentation means giving an insurer inaccurate, incomplete, or misleading information—whether on your application, at renewal, or during a claim. Some misrepresentations are honest mistakes, while others are intentional “soft fraud.” Either way, if the detail is important enough to affect your price or eligibility, it can cause serious problems later. Key Takeaways […]

What Is a Letter of Experience (For Insurance)?

A Letter of Experience (sometimes called a claims experience letter, insurance experience letter, or loss history letter) is a document from your prior insurer that summarizes your coverage history and claims activity for a specific type of policy (auto, home, renters, etc.). Most U.S. insurers can verify your history through reporting databases, so you won’t […]

How Do You Find the Actual Cash Value (ACV) for Your Car?

If your vehicle is stolen or your insurer declares it a total loss insurance claim, your payout is usually based on your car’s actual cash value (ACV)—what it was worth right before the incident. Below is a practical, step-by-step way to estimate your car’s ACV, understand how insurers calculate it, and push back if the […]

What Is Property and Casualty Insurance?

Property and casualty (P&C) insurance is a broad category of coverage that protects the things you own (property) and helps pay when you’re legally responsible for someone else’s injuries or damage (casualty). If you carry car insurance, homeowners insurance, renters insurance, or condo insurance, you already have some form of P&C insurance. The key is […]

Will Auto Insurance Pay to Jumpstart Your Car?

You count on car insurance to help after a crash, hailstorm, or major damage. But what about everyday hiccups like a dead battery—will auto insurance pay to jumpstart your car, or are you on your own? In most cases, a standard car insurance policy will not pay to jumpstart your vehicle. A dead battery is […]

How to Get Witness Statements After a Car Accident

The moments after a car accident can be disorienting. Once everyone is safe and emergency help is on the way (if needed), one of the smartest things you can do is identify any witnesses and preserve what they saw. A strong witness statement can help clarify what happened if fault is disputed, injuries show up […]

Will Auto Insurance Cover My Legal Fees?

The aftermath of a car accident can get expensive fast. On top of medical treatment and repairs to your car, you may also face legal bills – especially if someone sues you, you’re thinking about suing the other driver, or you’re in a dispute with an insurance company. So will auto insurance pay your legal […]

What Happens If Your Car is a Total Loss?

A total loss happens when your insurance company decides your vehicle isn’t reasonable to repair after a covered loss (like a crash, theft, or storm damage). In most cases, that’s because the repair cost is too high compared to what the car was worth right before the loss. If your car is totaled, the claim […]

Do You Need Uninsured Motorist Coverage?

Uninsured motorist coverage is designed to protect you if you’re hit by a driver who doesn’t have insurance—or doesn’t have enough of it. With millions of uninsured and underinsured drivers on U.S. roads, this coverage can be the difference between a fully paid claim and a huge out-of-pocket bill. In some states, uninsured motorist (UM) […]

Why Does Your ZIP Code Matter So Much for Auto Insurance Rates?

Many drivers are surprised (and sometimes annoyed) to learn that their ZIP code has a big impact on what they pay for auto insurance. It’s true: your ZIP code can significantly affect your car insurance premiums. Insurers don’t just look at you – they also look at the claim patterns, crime rates, and risk levels […]

Will Insurance Pay If I Hit My Own Car?

You scraped your own bumper, tapped another car you own, or backed into your garage door. Fortunately, you have insurance. But will your auto policy actually pay if you hit your own car or your own property, or are you stuck paying out of pocket? Basic liability car insurance will not cover damage to your […]

How Do Insurance Companies Determine Fault in an Accident?

After a car accident, your insurance company (and the other driver’s insurer) will investigate what happened to decide who is at fault. That decision can impact how much money gets paid for vehicle repairs and injuries—and it can also affect what you pay for coverage at renewal. Determining fault isn’t always simple. Crashes happen fast, […]

How to Get the Cheapest Car Insurance for Teens

Getting cheap car insurance as a teenager is tough. Teens pay higher rates than any other age group because they’re new to driving and statistically more likely to be in accidents. Still, “expensive” doesn’t have to mean “impossible to afford.” With the right setup, discounts, and car choice, you can significantly lower what you pay. […]

Can You Have Two Car Insurance Policies on the Same Car?

Can you have two car insurance policies on the same car? Technically, yes—but in practice it’s almost never a good idea. Below, we’ll explain when double coverage can happen, why insurers dislike it, how claims are handled if more than one policy applies, and better alternatives that usually save money and headaches. Key Takeaways Is […]

Is It Worth Buying Full Coverage Auto Insurance?

Full coverage auto insurance gives drivers a higher level of protection – but at a higher cost. Deciding whether it’s “worth it” comes down to how much risk you’re willing (and able) to take on yourself. Is full coverage auto insurance a smart investment, or are you overinsured and overpaying? The right answer depends on […]

What Is the Cheapest Car Insurance for Young Drivers?

Young drivers almost always pay the highest car insurance rates because they have less experience and are statistically more likely to be in crashes. In many cases, drivers under 25 pay two to three times more than drivers in their 30s for the same coverage. The good news? Modern insurers now offer more flexible tools—like […]

Do You Need to Get Insurance Involved After a Small Accident?

You were involved in a small accident and now you’re debating whether to tell your insurer or just pay for the damage yourself. Does insurance really need to get involved if there were only minor damages and no obvious injuries? Do you really need to report every accident to your insurer? This guide explains when […]