Frequently Asked Questions

Coverage will be determined by the terms of your policy, if approved for issue, and the circumstances of the claim.  Coverage exclusions may apply according to the terms of your policy.


Q: Can you help me with some basic insurance terms?

A: Sure! Let's start here:

  • Liability coverage - It helps cover you in the event you cause damage to someone else's property or bodily injury to someone else.
  • Underinsured motorist (UIM) - It provides additional coverage when another driver has insurance that doesn't fully cover the damage in an accident.
  • Uninsured motorist (UM) - It provides you additional coverage when another driver does not have insurance.
  • Property damage coverage - It helps cover damage to your own auto (comprehensive and collision coverage).

Q: What is a "no-fault state"?

A: Minnesota is one of 12 no-fault states.  In these states, insured motorists can recover financial losses from their own insurance company.

Q: Do you have local agents?

A: We don't have local agents, but we're available for all you questions at 1-888-507-3030.


Q: Does my insurance cover me when I travel outside of the United States?

A: Your policy only covers you inside the United States, its territories or possessions (e.g., U.S. Virgin Islands, Puerto Rico), and Canada.

Q: When do I add my teenage child driver to my policy?

A: Add a teenage driver to your policy when he/she gets a learner's permit.

Q: I bought a new car, when should I add it to my policy?

A: Add it as soon as you can, but the state gives you a four-day grace period for a brand new addition to your policy and a 14-day grace period for replacing a vehicle.

Q: How does the vanishing deductible work?

A: The longer you stay accident-and violation-free, the lower your deductible goes. Applied after you've been accident-free for 5-years.

Q: Are there gaps in rental vehicle coverage?

A: Yes, if the rental car is damaged, there may be a gap in coverage depending on the vehicle's market value after an accident.

Q: Are there limitations to roadside assistance?

A: Yes, there are. Here are some of them:

  • RVs and trailers are not covered
  • The limit is five disablements per year
  • Only vehicles on your policy with liability coverage are eligible for roadside assistance
  • You must wait 72 hours between roadside assistance calls

Q: What does Federated require when it comes to my vehicle title?

A: In order to have coverage at Federated, the vehicle must be titled personally to you.

Q: Can I insure a salvage title?

A: Yes, but the vehicle has to have repairs completed prior to adding it to a policy, and we might request proof.  If the vehicle is covered on a Federated policy and is involved in an accident and issued a salvage title, in order for us to cover physical damage, the repairs must be made within 30 days.

Q: What are the benefits of taking a 55 Alive course?

A: You'll be rewarded with reduced premiums if you take one of these courses.

Q: Am I covered if I drive for a rideshare service or delivery company?

A: No. If you participate in a rideshare program or delivery company, Federated will not insure the vehicles you use.

Q: What is a point on my motor vehicle record, and how does it impact my policy?

A: Points reflect your driving history. Traffic violations and accidents add points to your record, and affect your premium, so it’s important to maintain a clear driving record. The severity of the violation determines the number of points on your record.

Q:  How do different types of violations impact my rates?

A: There are two categories of violations: major and minor. To find out how they affect your insurance rates, call 888-507-3030 to speak to a representative if you’re involved in an accident or commit a moving violation to understand how it will impact your premium.

Minor violations

  • Include, but are not limited to, speeding tickets, seatbelt violations, running a red light.
  • Add lower numbers of points to your record.

Major violations

  • Include, but are not limited to, failure to stop and report when involved in an accident, driving with a revoked or suspended driver’s license, driving while intoxicated.
  • Add higher numbers of points to your record.


Q: Will you cover my home with a wood-burning stove?

A: No, unless it is an outdoor standalone unit.

Q: Will you cover my mobile home?

A: Mobile homes are not eligible for coverage on a Federated policy.

Q: My child is headed to college. Does my policy cover their belongings?

A: Yes. We cover up to 10 percent of your personal property limit or $1,000, whichever is greater.

Q: Can I add my bicycle to my policy?

A: Yes, It is subject to the policy deductible.  It would be added to the homeowner policy, unless the bicycle has a motor on it; then it may be covered on the auto policy.

Q: Do you cover water back-up through a sewer drain or sump pump failure?

A: Yes, but you must have this coverage added to your policy. 


Customer Service Center

Insurance professionals are available to answer your general policy service requests.