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.

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 and policy to policy.

In most cases in Arizona, your policy will cover the rented car for comprehensive and collision subject to the deductible on your policy. However, the rental car company will expect you to fix their car regardless of fault. This means you might be making a claim and paying your deductible for damage you may have had no involvement in. For instance, the car was hit while parked. To be on the safe side, it is a good idea to go ahead and buy the extra coverage.

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.

Why do auto insurance premiums keep going up?

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 services, 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)
  • Increase in frequency of accidents due to distracted driving
  • Increase in frequency of accidents due to current low cost of fuel resulting in more miles being driven

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.

What is Farmers doing to control car insurance costs?

  • We have a network of reliable auto repair facilities for the highest quality repairs at competitive prices.
  • We vigorously oppose frivolous lawsuits.
  • We have an active Anti Fraud Unit.
  • We actively support organizations devoted to auto safety, including funding anti-drunk driving efforts and those dedicated to improving youth driving safety.
  • We offer a wide variety of discounts to safer drivers.
  • We offer Annual policies to keep your rates stable.

What deductible should I choose?
The higher the deductible, the lower the premium – but the more you’ll pay out of pocket in case of a claim. The lower the deductible, the higher the premium – but the less you’ll pay if you have an insured claim.
Does the kind of car I drive influence my auto insurance rates?
The car you drive can have a substantial impact on your auto insurance premium, especially the amount you pay for your comprehensive and collision coverages. The insurance rates for comprehensive and collision coverage are determined by looking at the type of vehicle loss history – how often it is stolen, and how costly it is to repair or replace after an accident.