Insurance Conundrums: Are You Covered or Not?

July 30, 2023

When it comes to auto, homeowners and renters insurance, you may wonder what it covers and why. Here are answers to some common questions and ways to help make sure you have the protection you need, when you need it.

Auto Insurance

If my friend borrows my car and gets into an accident, will my auto insurance cover them?

The answer is yes. Generally, the accident is covered if your friend has a license and you gave them permission to use your car.

I was ticketed for speeding. If I pay my ticket on time, my insurance premium will stay the same, right?

Wrong. However, if you pay the ticket and go to traffic school, the speeding offense won't go on your record and will help keep your insurance costs from going up.

I need to rent a car. Should I purchase the extra insurance the rental company offers?

No, if you carry collision and comprehensive coverage, yes, if you don't. Typically, your own auto insurance policy will cover a rental car should something happen. In addition, most credit cards provide some insurance coverage, too. Check with your insurance company and credit card issuer before your trip.

My car is old. Can I drop collision and/or comprehensive coverage?

The answer is maybe, so use the 10% rule of thumb to see if you can drop it. For instance, if collision coverage costs $200 a year and your car is worth only $2,000, you're safe to drop it.

Homeowners and Renters Insurance

My adult child is going away to college. Do they need renters insurance?

No. As long as they're a fulltime student, under age 24, their belongings are usually covered by your homeowner's policy.

I went shopping and a thief broke into my car and stole some of my purchases. Will my insurance cover it?

Yes. Your homeowners or renters insurance will cover theft of personal property, although you will have to provide receipts.

My dog bit a houseguest. Am I covered?

Yes. Typically, homeowners and renters insurance cover liability expenses for dog bites.

Will my insurance cover earthquakes and floods?

No. While homeowners and renters insurance cover some perils, they do not cover earthquakes or floods. You will have to purchase separate policies for each.

Why should I choose higher deductibles?

You'll save more on your insurance policy by increasing your deductible, for example, raising it from $250 to $500.

Can I save money by bundling my insurance?

Yes. If you have auto and home insurance with different companies, a smart way to save money is to bundle your coverages with one company. By doing so, you could save 10% to 20% on each policy. Some companies offer discounts for bundling auto insurance with renters or condominium insurance, although the discounts are smaller.

I don't know if I have too much or not enough coverage. What do I do?

Get an insurance review. A licensed agent can help you explore your options, identify any gaps and find discounts you might not have thought of. For instance, it's important to make sure you have adequate liability and uninsured/underinsured coverage in case you have an accident involving an uninsured or underinsured driver.

Have More Questions? Let Our Experts Help

Our licensed insurance agents are here to make sure you find the coverage that's right for you. Get a free quote online or call (800) 462-8328, ext. 4309.

Monday through Thursday, 9 a.m. – 5 p.m.
Friday, 9 a.m. – 6 p.m.
Saturday, 9 a.m. – 3 p.m.


If some of the answers provided in this blog contradict information regarding your own insurance, contact your insurer for clarification for these and any other questions regarding specific coverage options.

CA Insurance License 0I19344.