Driving on freeways can be convenient, but it also comes with risks that are different from surface streets. Freeway accidents tend to be higher-speed and more severe than those on surface roads. This is why many insurance companies offer special policies tailored for freeway driving, known as “freeway insurance.”
What is Freeway Insurance?
Freeway insurance, also sometimes called expressway insurance or limited access road coverage, is an optional auto insurance endorsem*nt that provides additional protection for drivers who frequently use freeways, expressways, or other limited-access divided highways with entry and exit points regulated by on-ramps and off-ramps.
Standard auto insurance policies in most states only provide the minimum required liability coverage (known as “basic limits”) when driving on surface streets and assume some level of risk associated with lower-speed roads open to cross traffic. However, accidents that occur on high-speed divided highways tend to result in more severe injuries, higher medical costs, and greater property damage on average compared to surface streets.
Freeway insurance supplements a driver’s normal policy with enhanced coverages designed specifically for accidents that take place on limited-access roads. It usually includes higher liability limits, expanded property damage coverage, and potentially other optional protections as well. The additional premium charged provides policyholders with stronger financial protection in case of an accident while using roadways like interstates, tollways, and parkways. https://www.freeway.com/
How Does Freeway Insurance Work?
Most freeway insurance policies function in a similar way:
- Increased Liability Limits – The basic bodily injury and property damage liability coverage on a standard auto policy (often minimum state limits of $25,000/$50,000/$25,000 in many areas) is increased to higher amounts when driving on designated roadways. Common upgraded limits are $100,000/$300,000/$100,000.
- Expanded Property Damage Coverage – If you’re at-fault for an accident while on a limited-access highway, this coverage pays for damage to your own vehicle above your normal collision or other applicable deductibles. It kicks in after meeting the requirements of your regular auto coverage.
- Waiver of Deductible – For comp and collision claims occurring on a freeway where you’re not at fault, freeway insurance may waive your standard deductible, allowing for quicker repairs with less out-of-pocket.
- Additional Personal Injury Protection – Medical costs and lost wages from injury in a freeway accident can be paid via this coverage, which supplements normal PIP or MedPay. Benefit amounts are usually higher.
- Rental Car Reimbursem*nt – If your vehicle needs repairs from a freeway accident, this benefit covers the costs of a rental car during the repair process beyond what standard auto coverage allows.
- Towing and Labor Costs – Extras like towing fees and auto body shop labor charges are reimbursed in full for freeway accidents in which you’re not at fault.
So in summary, freeway insurance enhances certain aspects of a standard policy specifically for accidents incurred on limited-access divided highways. It provides drivers with deeper protection both financially and practically compared to relying just on basic coverage.
Who Needs Freeway Insurance?
Given the inherent risks of high-speed driving on highways separated by barriers, many insurance experts recommend considering freeway insurance for drivers who meet one or more of the following criteria:
- Frequently drive 10+ miles each way on freeways/interstates/toll roads to work or school on a daily basis
- Regularly make long-distance trips of 50+ miles that involve an hour or more of highway driving
- Operate a commercial vehicle like a delivery truck or taxi that logs most miles on limited-access roads
- Have a history of previous freeway accidents or traffic violations
- Drive a high-performance or luxury vehicle that would be costly to repair in a major accident
- Carry minimum state-mandated liability limits on their standard policy
- Want enhanced rental reimbursem*nt, waived deductibles, or higher liability protection
Essentially, those who routinely drive significant freeway mileage as part of regular commutes or occupationally are more likely to interact with the types of higher-speed situations that freeway insurance is designed to address. Discuss your typical driving patterns with your agent to see if adding this specialized coverage makes financial sense.
How Much Does Freeway Insurance Cost?
Premium costs for freeway insurance can vary based on several underwriting factors:
- Your Driving History – A clean record keeps rates lower, while prior accidents or violations result in higher prices.
- Vehicle Type – Sportier or luxury models that cost more to repair will have pricier rates than economical commuter cars.
- Mileage Driven – The more annual highway miles, the greater the exposure to risk and higher the rates.
- Limits Purchased – Opting for maximum liability protection results in a larger premium than minimum increased limits.
On average, drivers should expect to pay 10-30% more in annual premiums for a freeway insurance endorsem*nt compared to their standard policy rates. Some sample estimated costs may include:
- $100/year for a safe driver with a modest commuting distance
- $250/year for higher liability limits and a long-distance occupation
- $500/year for maximum protections, high-value vehicle, and 50+ mile daily freeway mileage
- $1,000/year for a high-risk driver record in need of extensive coverage
Shop around with multiple insurers, as rates can vary. Look for companies with strong financial ratings known for freeway insurance expertise. Being a good student or multi-policy customer may also qualify for discounts applied to freeway plan premiums.
Understanding Key Freeway Insurance Terms
Now that we’ve covered the basics of what freeway insurance entails and who should consider it let’s take a deeper look at some of the technical terms and coverage aspects involved:
Bodily Injury Liability
This coverage pays medical bills and other expenses for people injured in an accident you cause. Freeway plans increase standard BI limits, which are often too low for serious freeway crashes.
Property Damage Liability
Pays to repair or replace property damaged in an at-fault accident, such as another vehicle. Freeway PD limits are also heightened compared to standard coverage amounts.
Personal Injury Protection
Also called PIP or MedPay, this no-fault benefit covers your and your passengers’ medical costs and lost wages after an accident, regardless of fault. Freeway PIP limits are expanded.
Collision Coverage
Pays for damage to your own vehicle from an accident you’re responsible for, such as hitting another car, object, or rolling over. Freeway policies extend these benefits.
Comprehensive Coverage
Covers events like weather, falling objects, animal collisions, and more not involving another motorist. Freeway plans may waive deductibles under this coverage.
Uninsured/Underinsured Motorist
Pays for your injuries if an at-fault uninsured/underinsured driver hits you. Freeway UM/UIM coverage usually increases standard policy minimums.
Rental Reimbursem*nt
Provides funds for a rental car while yours is in the shop after a freeway crash covered by collision or comp. Limits are often higher than regular auto rates.
Now that you understand the key technical terms involved, you can confidently evaluate freeway insurance components and discuss them knowledgeably with an agent. Comprehension of coverages is important for making informed selections.
5 Common Freeway Insurance FAQs
Now that we’ve covered the basics of what freeway insurance is and the important factors to consider let’s address some questions consumers commonly have:
1. How do I know if I qualify for freeway discounts?
Check with your insurer – many offer discounts for multi-policy bundling, good student grades, completion of defensive driving courses, telematics usage, and more that can lower freeway rates too. Ask about all available discounts during the quoting process.
2. Does freeway insurance only apply to major highways?
No, policies tend to cover any limited-access divided road without intersections, so routes like tollways and some busier surface streets may qualify for freeway-level ratings, too, depending on the provider. Be sure to confirm exactly which roads are applicable.
3. Will my rates go up more if I file a freeway claim?
Possibly, as with any at-fault incident requiring payout by the insurance company. However, freeway claims could affect your premiums less severely than non-freeway accident history, thanks to the inherent risks acknowledged when underwriting the special coverage. Discuss surcharges and accident forgiveness benefits during renewal negotiations if needed.
4. What highways are covered in my area?
Contact your agent who has access to mapping software showing eligible routes near your residence or workplace. Major thoroughfares tend to be automatically classified as freeways, but some lesser-known or newly-built divided roads may require individual confirmation of being freeway-rated or not. Your agent can verify any questionable routes.
5. How do I sign up for freeway insurance?
Speak to your agent or insurer about adding the endorsem*nt to your current auto policy during renewal. They’ll need details on your driving patterns and routes to underwrite the appropriate coverage terms and costs. You may need to answer questions or provide documents, so start the process early. Payment details for the additional premium can also be arranged at signup. https://www.freewayinsurance.co.uk/
