What coverage do I need?
In case you’re involved in an accident, auto insurance provides financial protection for you and your family. It pays for the damage and injuries caused by the accident and for repairing or replacing your vehicle if it is damaged or stolen.
State Requirements
In most states, you are required to carry auto liability insurance (or post a bond) and provide proof of insurance before you can license your vehicle or renew your driver’s license. If you are caught driving without insurance, you may have to pay a large fine and have your driver’s license suspended.
Most states require drivers to carry minimum liability coverage. In many cases, the required minimum coverage may not be enough to pay for all the damages that result from an accident and the driver will have to pay the additional expenses out of pocket.
Types of Auto Insurance Coverages
There are many different types of auto insurance coverages for you to choose from. All insurance companies can work with you to decide what coverage combinations provide the best protection at a price that fits your budget.
Collision – Pays damages to your own vehicle.
Comprehensive – Pays for losses from fire, theft, storm, etc.
Deductible – The amount of a covered loss you agree to pay.
Bodily Injury – Pays for injury to others when you are at fault.
Property Damage – Pays for property damage when you are at fault.
Medical Payments – Pays for your own or your passenger’s medical expenses.
Personal Injury Protection – In no-fault states, this covers a broad assortment of medical expenses.
Uninsured/Underinsured Motorist – Coverage for you if other driver is not insured or is underinsured.
In addition to basic auto insurance, consider these optional services to provide added protection for your vehicle:
Emergency roadside assistance and towing service
Windshield glass repair service
Car rental reimbursement
How Much will Auto Insurance cost?
The price of auto insurance is determined by three factors: what you drive, your deductible, and the applicable discounts that can be applied to your account.
1. What you drive
Did you know one of the biggest expenses in owning a car or truck is the cost of insuring it? The car you drive can have a substantial impact on your auto insurance premium, especially on your comprehensive and collision coverage’s. Most insurance companies can help you by letting you know which vehicles are better insurance values.
The rates for comprehensive and collision coverage are determined by looking at the vehicle loss history – how often it is stolen, how costly it is to repair or replace after an accident. If you really want to get a good value for your insurance dollar, choose a car that is safer, less expensive to repair and less likely to be stolen. Many insurance companies can provide you with a list of their “preferred” vehicles.
2. Your deductible
You should choose a deductible that is appropriate for your particular situation. In general, the higher your liability limits, the higher your deductible should be.
3. Your discounts (not all discounts will be applicable)
Accident Free – In some states you may be eligible for a discount based on your driving history. Your insurance company can tell you if you qualify for this discount.
Good Student – Drivers under 25 years of age who are full-time students in college or vocational training school and have good grades may qualify for a good student discount.
Auto/Home – You can save money on both auto and homeowners insurance by purchasing both of these policies from the same insurer.
Auto/Life – You can often save money on your auto insurance by purchasing a life insurance policy from your insurer.
Multi-Car – If you own two or more vehicles and insure both of them with the same company, you may qualify for the Multi-Car discount.