Oklahoma

What is the minimum auto liability coverage required in Oklahoma?

Automobile liability coverage is required by state law. The minimum amount of liability coverage is 25/50/25. For a full explanation of coverage requirements, please click here.

  1. The premium for my auto insurance policy has increased, why?

Compare the previous declaration page with the renewal declaration to find out exactly what has changed. If you have had an accident or a citation, your automobile insurance may be surcharged. Also, you may have lost a discount. If either of the previously mentioned examples are not the case, the increase may be due to a rate increase because your insurer requested an increase based on overall loss experience for the entire state. You may review information on company rate filings by going to the Property and Casualty Division and clicking on Monthly Filing Activity Reports.

  1. What can I do to lower the premium of my automobile insurance policy?

There are a multitude of various discounts given by different insurers. Make sure you are getting all the discounts possible. Examples of some of the various automobile discounts available are multi-car discounts, multi-policy discounts, good student discounts, driver education discounts, safety course discounts, automobile security system discounts, and vehicle identification number etching discounts. Also, shopping around with different companies may prove valuable in reducing the amount of insurance you are paying. For more information, you can review the Department’s brochure, “Choosing Your Automobile Insurance Policy” by going to the e and clicking on Automobile Insurance Rates Comparison Chart.

  1. What is Uninsured Motorist Coverage and am I required to have it?

This coverage pays you, resident members of your family, and occupants of your car for personal injuries caused by an uninsured motorist, an underinsured motorist, or a hit and run driver. While you are not required by law to carry this coverage, companies are required to offer it with every policy. It does not pay for damages to your car. If an uninsured motorist damages your car, repairs would be paid for under your collision coverage. If you carry liability only, there would be no insurance coverage available to repair your car.

  1. What does Uninsured Motorist Coverage pay for?

UM pays you, resident members of your family, and occupants of your auto for personal injuries caused by an uninsured motorist, an underinsured motorist or a hit and run driver. It does not pay for damages to your car! If an uninsured motorist damages your car, repairs would be paid for under your Collision coverage. If you carry Liability only, there would be no insurance coverage available to repair your car.

  1. My private passenger auto insurance was non-renewed and I am finding it difficult to find a company that wants to insure me. What should I do?

Any time your policy has been canceled or non-renewed, finding new coverage can be a problem. Companies often have strict new business underwriting rules, and may be reluctant to offer coverage for someone in this situation. Your best bet is to contact several companies to see if you can find coverage. If that fails, then you should call the Oklahoma Assigned Risk Auto Plan. The phone number is (866) 667-2827, the fax number is (405) 842-1361 and click here to visit the website.

  1. Why are auto rates higher for youthful males than they are for youthful female drivers?

The Oklahoma Insurance Code requires companies to use rates that are not inadequate or unfairly discriminatory. A rate is not considered to be unfairly discriminatory if it reflects equitably the differences in expected losses and expenses. Companies maintain loss statistics that continue to show that more dollars are paid due to losses involving male youthful drivers when compared to female youthful drivers. Rating factors will be higher to reflect these figures. However, it is worth noting that the gap between the rates for youthful males and youthful females is getting smaller.

  1. I was involved in an accident in which the other driver was at fault and had no liability insurance. Can my rates increase after I file a claim on my own auto policy?

No. Section 941 of the Oklahoma Insurance Code says that a company cannot assign driving record points, cancel, refuse to renew or increase the premium rate for any motor vehicle liability or collision insurance policy for the reason that the insured has been involved in a motor vehicle collision and was not at fault.

  1. My automobile is inoperable at the present time. Do I have to maintain liability insurance while it is not being driven?

Maintaining an owner’s policy or a non-owner’s policy will prevent you from paying higher premiums, due to a lapse in coverage, when obtaining insurance on the repaired vehicle. The Department of Public Safety regulates the compulsory insurance laws that require financial responsibility. You may contact this agency at 405-425-2424 or the Oklahoma Department of Public Safety's website to determine whether you are in compliance or to report persons that are in violation.

  1. I am interested in beginning an interstate trucking operation. What are the liability, cargo and bond requirements?

While the Department of Public Safety regulates private passenger auto insurance requirements, the Oklahoma Corporation Commission is the regulatory authority on financial responsibility compliance for motor carriers. You may contact them at 405-521-2251 or you may wish to visit their website.

  1. Is there a grace period on auto insurance if your premium payment is late?

No. There may be times when a company will reinstate a policy once the overdue payment has been made, but if you have had a loss during that period, there most likely will be no coverage.

  1. My automobile had original parts on it before the accident. Why is the company allowed to use "like kind and quality parts"?

Following an auto accident, an insurance company’s limit of liability is the actual cash value of the property or damaged part of the property at the time of the loss. Putting brand new parts on an older vehicle would result in betterment, which is not the intention of the policy. If you still insist on new factory parts, the company will likely require that you pay the difference between the new parts and the "like kind and quality parts".

  1. Can the Insurance Department determine liability?

No. The Insurance Department is an administrative body. As such, we cannot determine fault and/or negligence nor the degree one might be considered at fault or negligent in an automobile accident. Such a determination can only be made by a court having proper jurisdiction.

  1. What is a third party claim?

A third party claim occurs when you are seeking payment from another persons liability insurance due to the negligent actions of that person. This type of claim is the source of frequent complaints to the OID. Typically, the insurance company is making what the third party claimant considers to be too small of a settlement offer for the damages of the third party. The Insurance Department has limited authority on these types of claims. However, several claims of this type have been settled through the Department's EAGLE program. For more information on the program, go to Eagle Mediation.

  1. What is comparative negligence?

This a principle of tort law that applies in Oklahoma which provides that in the event of an auto accident, each party’s negligence is based on that party’s contribution to the accident. For example, if in an auto accident both parties fail to obey the yield sign, their negligence would be equal, and neither would collect legal damages from the other. In some cases, the comparative negligence may be found to be 80/20 or 60/40.

  1. How do insurance companies determine how much to pay for a totaled car?

Auto insurance provides coverage on an actual cash value (ACV) basis, which means that the company owes the ACV at the time of the loss. The Oklahoma Insurance Department has no authority to determine the appropriate ACV of a vehicle. According to state law, such cost may be determined by: the cost of a comparable motor vehicle in the local market area when a comparable motor vehicle is available in the local market area, one or two or more quotations obtained by an insurer from two or more qualified dealers located within the local market area when a comparable motor vehicle is not available in the local market area, or the cost of a comparable motor vehicle as quoted in the latest edition of the National Automobile Dealers Association Official Used Car Guide or monthly edition of any other nationally recognized published guidebook.

  1. Following an accident in which the other party was at fault, will the insurance company provide me with a replacement vehicle?

 

The insurance company for the at fault party should provide you with a replacement vehicle while your car is in the shop being repaired. If your car is a total loss, the company will generally provide the replacement vehicle until a settlement offer has been made on your car. On the other hand, if the accident was your fault and you will be filing a claim under your auto policy, a replacement car will not be provided unless you purchased rental reimbursement coverage.