Auto Insurance FAQ

Researching auto insurance can leave you asking questions. To aid you in making the best decision for you and your family, we have answered some of the most frequently asked auto insurance questions. 

Are high deductibles worth the savings? 

This is a personal choice as to what you feel like you can afford. Higher deductibles can save you premium, but it may not be the best route for all insureds. When choosing a higher deductible, you are assuming more financial liability in the event of a claim. If you are comfortable with paying a higher amount out of pocket, higher deductibles can be a way to save on premium. 

Why did my rates change when I moved? 

Part of a policy’s rating includes the territory where the risk is located. Territories are rated off of Census tracts. Census tracts allow for greater granularity in rating analysis and will put Farm Bureau in line with competitors’ territory rating. It is possible that when you moved, you moved from one census tract to another with a higher rating. 

Does my auto insurance cover rental vehicles? 

In general, the insurance options offered by a rental company overlap with the insurance policies you already have. However, each insurance policy is unique, and you should always check with your insurance agent prior to renting a car. We provide the broadest coverage purchased on your policy to the vehicle you are renting. If you have both comprehensive and collision on at least one vehicle with us, that coverage will extend to the vehicle you are renting. However, we don’t pay for downtime that a rental company may incur if you damage one of their vehicles.

What steps should I take if I’m in an accident?

Call the police. Gather information and obtain the contact information of the other driver and the license plate of the involved vehicles. If possible, obtain photos/video of the accident scene and document any damage to the vehicles. Once you are safe, call your insurance company for next steps

Why do insurance companies use insurance scores?

Leading insurance companies in Michigan use insurance scores for auto and homeowners insurance. This is because individuals with certain financial characteristics on their credit report are less likely to submit claims. Insurance companies decide what rate to charge based upon the potential for loss. They consult several sources for underwriting information helping them make the best decisions. 

What are Collision and Comprehensive Coverages? 

Collision coverage helps pay to repair or replace your car if it’s damaged in an accident with another vehicle or object, such as a fence or a tree. Comprehensive coverage protects you from events outside of collision. These could include animals such as deer, fire, theft, glass breakage, vandalism, falling objects, and others.