What does “full coverage” mean?

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 Farmers 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 us.

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 us.

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 Farmers agent will help you understand the potential increases if an accident does occur.

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.