Questions About Auto Insurance Coverage You May Forget To Ask Up Front

It's natural to have lots of questions about auto insurance when taking out a policy. But you don't always think of every possible scenario at the time you're talking to the insurance agent. Some questions you might not even think about until that particular situation arises. Still, it helps to know where you stand beforehand.

Questions about insurance coverage for which you need the answers but don't immediately think to ask:

Are you covered if you drive a vehicle that belongs to someone else?

Answer: If you drive a vehicle that is registered to another driver and get in an accident, your policy's bodily injury liability and property damage coverages will pay for medical costs and property damage. That is, as long as you have liability insurance. When it comes to collision and comprehensive coverages, it's the vehicle that's insured, not the driver. The insurance of the person who owns the vehicle, not your insurance, is the first to pay.

Are you covered from the moment you drive a vehicle you purchased off the lot?

Answer: In most states, you are required to show proof of auto insurance before the dealership allows you to take the vehicle. You must call your agent and request that the paperwork be faxed to the dealer.

If you take the vehicle out for a test drive before buying it, the dealer may ask you to sign a waiver form stating that you have liability insurance that will cover you if you're in an accident.

Will your auto insurance cover other drivers you allow to operate your vehicle?

Answer: Although the terms of auto policies vary, generally, your comprehensive and collision insurance will cover any drivers you give permission to operate your vehicle. However, some insurance companies will cover only those drivers you name in your policy.

If your insurance provides coverage for other drivers not named in your policy, the coverage may be limited to the state minimum coverage requirement. Some policies go so far as to exclude other drivers from operating your vehicle.

If you are involved in an accident and your vehicle is declared a total loss, is the insurance company responsible for reimbursing you related fees when you replace the vehicle?

Answer: Many states require auto insurers to pay for the sales tax and registration fees. Usually, you have to make the request. Most insurance companies don't automatically offer the money without you first asking.

If you live in a state that doesn't require insurance companies to reimburse policyholders for sales tax, ask anyway. There's a good chance you'll get it. However, you will only be reimbursed the amount of sales tax based on the value of your totaled vehicle before the accident, not the new vehicle you buy.

Do you have to add your teenager to your auto policy when he or she first gets a driver's permit?

Answer: Unless you are considered high risk for auto insurance, you don't have to add your teenager to your policy until he or she becomes a licensed driver.

Is damage to your vehicle covered if you hit an animal on the roadway?

Answer: Provided that your policy includes comprehensive coverage, you'll be covered. Collision coverage doesn't apply in this particular situation since collision only covers accidents involving two vehicles. Comprehensive coverage pays for physical damage to your vehicle not caused by a collision.