Auto Insurance Information
What is Auto Insurance?
Auto insurance protects you financially in case of an accident. It is a contract between you and the insurance company. You agree to pay the premium, and in return, the insurance company covers your losses as defined in your policy.
Auto insurance includes property, liability, and medical coverage:
Property Coverage: Covers damage to or theft of your car.
Liability Coverage: Covers your legal responsibility for bodily injury or property damage to others.
Medical Coverage: Covers the cost of treating injuries, rehabilitation, and sometimes lost wages and funeral expenses.
An auto insurance policy comprises six different kinds of coverage. While most states require some of these coverages, not all are mandatory. Additionally, if you are financing a car, your lender may have specific requirements.
Most auto policies are issued for six months or a year. Your insurance company will notify you by mail when it’s time to renew and pay your premium.
Why Do You Need Auto Insurance?
Auto insurance is essential for protecting yourself financially:
Accident or Theft: It covers the costs of fixing or replacing your car.
Medical Expenses: It pays for expensive medical costs if you or passengers are injured in an accident.
Legal Liability: It protects you if you cause damage or injury to others, which can result in lawsuits that exceed your net worth.
Legal Requirement: Many states mandate having at least some auto insurance coverage.
Questions to Ask Your Agent
Your Independent Agent can help you find the auto insurance that fits your specific needs. Consider the following as you prepare for your discussion:
Budget: How much can you afford to pay if you get into an accident? You might opt for a higher deductible to keep premiums low.
Service Quality: What is the insurance company’s level of service and ability to pay claims?
Discounts: What discounts are available? Ask about good driver, multiple policy, and student discounts.
Claims Procedure: What is the process for filing and settling a claim? Find out who to contact and what happens after you file a claim.