Frequently Asked Questions
The General® prides itself on being able to answer all your car insurance questions. You’ll find answers to some common questions below, and if you’d like to consult with an expert on specific questions related to your policy, give us a call!
Auto Insurance Questions and Answers
The lien holder is the person or entity that has a financial stake in the vehicle being insured. It may be an individual who owns the vehicle, or it may be a bank or lending institution that has financed the loan on the vehicle.
It’s important to know that if you’re leasing your car, the leasing company will require you to have collision and comprehensive car insurance coverage. This coverage protects the vehicle in the event of a claim. Some leasing companies also require higher than minimum liability limits.
A “restricted” policy is an optional endorsement that restricts the coverage under your policy to only those individuals who are specifically listed on the policy.
A deductible is the portion of the claim that a policyholder must pay before the insurance company will make a payment. The higher the deductible, the lower the cost of your insurance coverage.
“Liability only” insurance typically refers to the minimum coverage requirements in most states. Liability coverage pays for injuries to other people and damage to their property, which may be caused by you in an accident.
“Full coverage” is not a specific coverage offered by insurance companies. Although there is really no such thing as “full coverage,” that term is usually intended to mean that a policy has more than just the minimum “liability only” coverage and usually refers to a policy that includes collision and comprehensive coverage.
Whether you need collision and comprehensive coverage depends on your situation. If you are financing or leasing your own vehicle, collision and comprehensive coverage will be required by the leasing or financing company. If you own your vehicle, these coverages are optional, but they do provide protection for your vehicle in the event of a covered accident. When choosing whether you need collision and comprehensive coverage, consider the value of your vehicle (what the insurance company will pay in the event of a loss, minus the deductible) and the cost of collision and comprehensive coverage.
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