Ask Professor Cribby: Insurance Questions Answered

Car insurance can be expensive because of your driving history, location, age, vehicle type, credit-based insurance score where allowed, coverage limits, claims trends, repair costs, and carrier rate changes.

You may lower your premium by comparing carriers, increasing deductibles, bundling policies, improving credit where applicable, keeping a clean driving record, using discounts, and reviewing coverage on older vehicles.

The cheapest company varies by driver, vehicle, location, coverage, and underwriting. The best approach is to compare multiple carriers instead of assuming one company is always cheapest.

You need enough liability coverage to protect your income and assets, plus physical damage coverage if your vehicle is financed, leased, or too expensive to replace out of pocket.

Common rating factors include driving record, age, location, vehicle, mileage, prior insurance, claims history, coverage limits, deductibles, discounts, and credit-based insurance score where permitted.

In many states, insurers may use a credit-based insurance score as one rating factor. It is not the same as a loan credit score, but credit behavior can influence pricing where allowed.

Premiums can rise because of inflation, higher repair costs, medical costs, weather losses, theft trends, carrier-wide rate filings, location changes, vehicle changes, or discount changes.

Yes, it can be helpful to review coverage annually, especially if your rates changed, you bought a vehicle, moved, added drivers, or had major life changes.

New drivers usually pay more because they have limited driving history. The cost depends on age, vehicle, location, coverage, household policies, discounts, and carrier underwriting.

Yes. Younger and inexperienced drivers often pay more, while rates may improve with experience and a clean record. Rates can also change later in life depending on carrier guidelines.

“Full coverage” usually means liability plus comprehensive and collision coverage. It does not mean every possible loss is covered, so exclusions and limits still matter.

Liability insurance helps pay for injuries or property damage you cause to others in a covered accident, up to your policy limits.

Collision coverage helps pay to repair or replace your vehicle after a covered collision, regardless of who is at fault, subject to your deductible.

Comprehensive coverage helps cover non-collision losses such as theft, vandalism, hail, fire, falling objects, animal strikes, and some weather events.

Uninsured motorist coverage can help protect you if you are injured by a driver who does not have insurance or in certain hit-and-run situations.

Underinsured motorist coverage can help when the at-fault driver has insurance, but not enough liability coverage to pay for your damages.

Medical payments coverage can help pay medical expenses for you and passengers after a covered accident, regardless of fault, up to the selected limit.

Personal injury protection, or PIP, can help pay medical expenses and sometimes lost wages or related costs after an accident, depending on state requirements and policy terms.

State requirements vary, but most states require minimum liability coverage. Some states also require uninsured motorist, PIP, or other coverages.

Many drivers should consider limits higher than state minimums because serious accidents can exceed minimum coverage quickly. Your assets, income, and risk tolerance should guide the decision.

Check for injuries, call emergency services if needed, move to safety, exchange information, take photos, gather witness details, avoid admitting fault, and contact your insurance agent or carrier.

Rates may increase after an at-fault accident, but it depends on your carrier, state, claims history, accident forgiveness, severity, and whether you were responsible.

Many insurers review accidents for three to five years, but the timeframe can vary by state, carrier, and accident type.

If damage is minor and close to your deductible, paying out of pocket may make sense. If injuries, major damage, another party, or uncertainty is involved, speak with your agent or carrier.

Your uninsured motorist coverage, collision coverage, or medical coverage may help depending on your policy and state rules.

Simple claims may settle quickly, while claims involving injuries, liability disputes, parts delays, total losses, or multiple parties can take longer.

If your car is totaled, the insurer typically pays the vehicle’s actual cash value minus your deductible, subject to policy terms and any loan or lease payoff issues.

Insurers usually consider year, make, model, mileage, condition, options, market data, prior damage, and comparable vehicle sales.

In many cases, you can choose your repair shop, but carrier-preferred shops may offer streamlined estimates, warranties, or direct billing.

Fault rules vary by state. Your ability to recover damages and how much you receive may depend on comparative or contributory negligence rules.

Gap insurance can be valuable if you owe more on a loan or lease than the vehicle is worth, especially on newer vehicles with low down payments or long loan terms.

Your auto policy may extend some coverage to rental cars, but limits, deductibles, loss-of-use charges, and international rentals can vary. Review your policy before declining rental coverage.

Windshield coverage may be included under comprehensive coverage, sometimes with a deductible or separate glass option depending on the carrier and state.

Electric vehicles can cost more to insure because repairs, parts, batteries, and specialized labor may be more expensive, but pricing varies by model and carrier.

Tesla insurance costs vary by model, location, driver, coverage, and carrier. Because repair costs can be higher, comparing multiple carriers is important.

Hail damage to your vehicle is typically covered by comprehensive coverage, subject to your deductible.

Hitting a deer is usually covered by comprehensive coverage, not collision, subject to your deductible.

Older vehicles may be cheaper to insure if you remove comprehensive and collision, but liability costs still depend on the driver, location, and coverage limits.

Consider removing comprehensive and collision if the vehicle’s value is low compared to the premium and deductible, and you can afford to repair or replace it yourself.

Vehicle theft is typically covered by comprehensive coverage, subject to your deductible and policy conditions.

In many situations, auto insurance follows the vehicle first, but coverage can depend on permission, household status, exclusions, and policy terms.

Permissive drivers may be covered in many cases, but household members, regular users, excluded drivers, or business use can create coverage issues.

Teen drivers generally need to be listed on the household policy once licensed or when required by the carrier. Adding a teen usually increases premium.

A speeding ticket can increase rates depending on severity, prior record, carrier, and state. Multiple violations usually have a larger impact.

Many carriers rate tickets for three to five years, but the exact period varies by state, carrier, and violation type.

A lapse can lead to higher premiums, registration issues, fines, license consequences, and no coverage if an accident happens during the gap.

Personal auto insurance usually excludes rideshare or delivery work unless you add an endorsement or carry a rideshare/commercial policy.

An SR-22 is a filing that proves you carry required insurance after certain violations. Your state or court will tell you if it is required.

Usage-based insurance uses driving behavior, mileage, or telematics data to help price coverage. Safe drivers may qualify for savings.

Telematics can be worth it for safe, low-mileage drivers, but it may not be ideal if your driving habits could increase your rate.

Most businesses should consider general liability, property, workers compensation, commercial auto, cyber liability, professional liability, and umbrella coverage depending on operations and contracts.

Some coverage may be legally required, such as workers compensation or commercial auto. Other coverage may be required by landlords, lenders, vendors, or clients.

Your limits should reflect your contracts, assets, revenue, payroll, industry risk, customer exposure, vehicles, property, and potential lawsuit severity.

Cost depends on industry, revenue, payroll, location, coverage types, limits, claims history, property values, vehicles, and risk controls.

Pricing is affected by operations, class codes, payroll, sales, property values, vehicles, claims, coverage limits, deductibles, location, safety practices, and carrier appetite.

Yes. Many small businesses can bundle general liability and property through a Business Owner’s Policy, or BOP, when eligible.

A Business Owner’s Policy, or BOP, usually combines general liability and commercial property coverage into one package for eligible small businesses.

A BOP may be a good foundation, but many businesses still need workers compensation, commercial auto, cyber, professional liability, EPLI, or umbrella coverage.

General liability covers certain third-party injury and property damage claims. A BOP typically includes general liability plus property coverage and sometimes business income coverage.

Review business insurance at least annually and whenever you hire employees, add vehicles, sign contracts, move locations, buy equipment, or change operations.

General liability helps cover third-party bodily injury, property damage, personal injury, advertising injury, and certain legal defense costs.

It usually does not cover employee injuries, professional mistakes, auto accidents, property you own, intentional acts, cyber losses, or employment-related claims.

General liability does not cover employee injuries. Workers compensation is the primary coverage for employee work-related injuries.

It may cover your liability related to subcontractor work in some cases, but subcontractor requirements, additional insured status, and certificates are important.

Yes, it can cover damage your business causes to someone else’s property, subject to exclusions and policy limits.

Yes, it may cover customer injuries on your premises or caused by your operations, subject to policy terms.

Liability limits are the maximum amount the policy will pay for covered claims. Common limits include per-occurrence and aggregate limits.

Your liability limits should match your contracts, industry risk, revenue, assets, customer exposure, and worst-case lawsuit scenarios.

General liability can help pay legal defense and covered damages for certain lawsuits involving bodily injury, property damage, or advertising injury.

General liability is not always required by law, but landlords, clients, vendors, and contracts often require it.

Commercial property insurance helps protect buildings, business personal property, equipment, inventory, furniture, fixtures, and sometimes business income after covered losses.

Theft may be covered under commercial property or crime coverage, depending on what was stolen and how the policy is written.

Vandalism is commonly covered under commercial property insurance, subject to deductibles and exclusions.

Business equipment may be covered under commercial property, inland marine, equipment breakdown, or contractor equipment coverage depending on the item and location.

Inventory can be covered under business personal property coverage, subject to limits, valuation, and covered causes of loss.

Signs may be covered, but limits and causes of loss vary. Outdoor signs may need specific coverage or endorsements.

Replacement cost coverage pays to replace covered property with new property of similar kind and quality without deducting depreciation, subject to terms.

Commercial property insurance commonly covers fire damage to covered property, subject to limits and exclusions.

Sudden and accidental water damage may be covered, but flood, sewer backup, seepage, or maintenance-related water issues may require separate coverage or be excluded.

Storm damage may be covered if caused by covered events such as wind, hail, or lightning, subject to deductibles and policy terms.

Professional liability protects businesses against claims involving professional mistakes, negligence, errors, omissions, or failure to deliver services as promised.

Errors & Omissions insurance, or E&O, is another name for professional liability coverage, often used by consultants, agents, advisors, and service professionals.

Yes, many consultants should carry E&O because advice, recommendations, missed deadlines, or alleged mistakes can lead to costly claims.

E&O can cover covered negligence claims related to professional services, including legal defense costs and damages subject to policy terms.

Your E&O limits should reflect contract requirements, client size, revenue, professional exposure, and the potential financial impact of an error.

Consultants, insurance agencies, real estate professionals, tech firms, accountants, marketing firms, healthcare providers, and other service businesses often need E&O.

General liability covers certain bodily injury and property damage claims. E&O covers professional mistakes, negligence, and financial loss from services or advice.

Yes, many E&O policies cover legal defense costs for covered claims, but whether defense costs reduce the policy limit depends on the policy.

Many clients require E&O in contracts, especially when professional advice, consulting, technology, design, financial, or healthcare services are involved.

E&O cost depends on industry, revenue, services, limits, claims history, contracts, and risk controls.

Yes, many small businesses need cyber insurance because they collect payments, store customer data, use email, rely on software, or face phishing and ransomware risks.

Cyber insurance can cover data breaches, ransomware, cyber extortion, business interruption, notification costs, forensic investigation, legal expenses, and liability claims.

Your limit should reflect your customer data, revenue, contracts, payment processing, regulatory exposure, downtime risk, and cost to recover from an attack.

Cyber insurance is often worth it because even small cyber incidents can create major costs for recovery, legal help, notification, lost income, and reputation damage.

Workers compensation requirements vary by state, but most businesses with employees are required to carry it.

Workers compensation helps cover medical expenses, lost wages, rehabilitation, and related benefits for employees injured in the course of work.

Remote employees may be covered for work-related injuries, but claims depend on whether the injury occurred during job duties and within policy terms.

Employment practices liability insurance, or EPLI, helps protect against claims such as wrongful termination, discrimination, harassment, retaliation, and employment-related disputes.

Commercial umbrella insurance provides additional liability limits above certain underlying policies, such as general liability, commercial auto, or employer’s liability.

The right umbrella limit depends on contracts, vehicles, payroll, customer exposure, property access, industry risk, revenue, and how much lawsuit protection your business needs.