Auto Insurance - Considerations for all Life Situations

Rethink Your Auto Insurance Options


Exciting transformations in mobility mean consumer driving habits are changing. Since 1983, the percentage of people with a driver’s license has steadily decreased among 16 to 44-year-olds. As more people look to ridesharing, public transportation and eventually self-driving vehicles, consumers should rethink their auto insurance needs and options.


Get the right protection for your safety, your property and your identity.


Beyond the sale price, insurance is one of the most important financial questions to consider before buying a new car.


Most states require individuals to purchase insurance coverage to drive legally. Auto insurance can be divided into two basic coverage areas: liability and property damage.


When shopping for auto insurance, premium quotations are a useful tool for comparison of different companies’ products. Two factors determine what you pay for auto insurance. The first factor is underwriting where insurance companies assess the risk associated with an applicant. The second factor is rating; the rating assigns a price based on what the insurer believes it will cost to assume the financial responsibility for the applicant’s potential claim.


With the joys of a new ride comes much responsibility – especially when the unexpected occurs.

In an automobile accident, you are concerned first about your safety and secondly about your vehicle. Likely, the last thing on your mind is protecting your identity. In fact, a recent NAIC survey suggests that after an accident, many Americans do not really know what information they should share with the other driver. State laws vary, but in most cases you need only provide your name and vehicle insurance information, which should include the name and phone number of your insurance provider. Sharing personal information such as your address and phone number may put your privacy and identity at risk. However, if another driver is unable to provide vehicle ownership and/or insurance information it is appropriate to ask for their phone number, address and driver's license number.


According to a recent NAIC survey:

  • Thirty-eight percent of consumers believed they should share their driver’s license number with the other driver — one in six would even allow the other driver to photograph the license as a convenient way to exchange information.
    • So what’s the risk? In the hands of criminals, your driver’s license number can be as valuable as cash. Many retailers accept driver’s license information to verify identity over the phone. In fact, your license number is the most common way to confirm your identity after Social Security number and date of birth.
  • Twenty-five percent of consumers surveyed said they would share their home address.
    • Actually, your home address gives identity thieves the physical location of your mail or garbage, the first place criminals often look for personal financial information. And, now a stranger knows where you live, possibly putting your personal safety at risk.
  • Twenty-nine percent of survey respondents believed they are required to share personal phone numbers. In fact, sharing your phone number is rarely necessary.

Identity theft is one of the fastest-growing crimes in the United States. The Federal Trade Commission estimates nearly nine million consumers have their identities stolen each year, disrupting finances and damaging credit histories and reputation. Knowing what to share helps keep property and identities safe.


The survey also found consumers were unsure about other auto accident best practices. For example, nearly 20 percent of respondents believe the only reason to call police after an accident is if someone is injured. However, filing a police report can help facilitate the insurance claims process.


Download a printable accident checklist and other tips for staying calm, safe and smart on the road.