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 All about car insurance

There are few things in life that can ruin your day like a car accident. Car insurance can help protect you and your loved ones if that day ever comes, but it’s not enough to just buy the policy; you’ve also got to pay attention to the fine print. Here is a list of things you should know before getting auto insurance for yourself or your business. 

What is included in a standard policy?

An auto insurance policy will cover property damage, medical expenses, and lost wages caused by an accident. Before getting into a car accident, confirm what kind of coverage includes bodily injury liability as well as uninsured-motorist protection—these are two common features most policies include today.

What is a deductible?

The deductible acts as your financial risk—insurance companies agree to cover accidents up to the amount of your deductible. Deductibles are typically $500 or higher, but certain insurance companies offer lower deductibles for an additional fee. When you’re choosing a deductible, consider how much money you can spare if something happens, as well as any future premiums that will be affected by your choice. 

What is the difference between liability and collision?

For a majority of auto insurance policies, liability and collision are both included in one policy. Liability covers property damage to other people’s vehicles, medical expenses for their injuries, and lost wages for them if they miss work. Collision will cover damage to your own vehicle. If you don’t need collision coverage, you should be able to save money by opting for liability-only protection.

What are the different levels of coverage?

There are three levels of auto insurance: basic, mid-level, and comprehensive. Basic will cover the cost of your car after a collision or other accident up to a certain amount—this is not considered comprehensive protection and definitely isn’t enough if you want to feel completely protected from an accident or other event that might leave you without your car for an extended period of time. Mid-level provides you with the cost of your car, or up to a specified amount, as well as liability coverage for you and others. Comprehensive protection covers more than just your vehicle; it also includes property damage and uninsured motorist coverage.

What are the different types of plans?

The major benefit of purchasing car insurance is that it can help protect you and your family from financial losses should an accident occur. Whether you’re in need of collision coverage, comprehensive protection, or uninsured motorist protection, insurance companies offer a variety of policies to help meet your needs.

Types of liability coverage:

Liability coverage will help save you money if you’re found responsible by a court for causing damage to someone else’s vehicle or property. Subrogation will help the other party get their losses reimbursed to them, and this could cost you in the long run if you don’t have enough coverage. The amount of liability coverage that different insurance companies offer depends on several factors, but they all offer more than minimum requirements. Some of these include:

Types of comprehensive coverages:

Comprehensive protection covers not only the value of your car but any expenses associated with repairing the damage to your vehicle as well as legal fees for defending yourself or recovering from an accident. What you include in your coverage is up to you; some people opt for comprehensive protection that covers the entire cost of their vehicle, while others go with coverage that covers just the vehicle itself while offering a deductible.

What is no-fault insurance?

No-fault insurance was designed to reduce the costs of accidents and injuries. Your state will designate one or more companies to handle all claims, regardless of who caused an accident. The company that handles the claim will handle everything from settlement negotiations through restitution payments. If someone doesn’t have adequate coverage (such as collision or comprehensive protection) they may be required to purchase this added coverage.

What is uninsured motorist coverage?

Uninsured motorist protection protects you if you are injured in an accident that wasn’t your fault. This type of coverage is optional, and most companies don’t offer this type of coverage in all states. It will help cover medical expenses if you are injured by someone who doesn’t carry insurance or whose insurance company denies paying for treatment and pays only a small amount. UMS pays up to $25,000 towards the cost of your injuries, regardless of who caused the accident. 

What is property damage coverage?

Property damage means damage caused to another person or another person’s property because of an accident. Property damage may include damage to the other party’s vehicle and their property, as well as your own vehicle if it was damaged during an accident.

What is a premium?

A premium refers to the amount you pay for an insurance policy or insurance coverage. Different companies will offer different rates—for example, a newer car will probably have higher premiums than an older model due to repair costs and the cost of replacement parts. 

Should I buy auto insurance?

The short answer is yes, you should get some type of auto insurance. The Centers for Disease Control and Prevention shows that each year in the United States more than 10 thousand people are killed in accidents involving passenger cars, motorcycles, and trucks. If you own a car, you should buy insurance. While there are certain costs associated with auto insurance, it is money well spent because of the protection and security that comes with it.

What are the types of accidents that may happen?

There are several types of accidents that can happen while driving that can leave you without your vehicle or require repairs to your vehicle. These include: 

Auto insurance is meant to protect a person during an accident. It protects them from paying for damages they cause and also provides help if the other party has no insurance or is unable to pay for the cost of repairing or replacing their automobile after an accident occurs.

How much coverage should you have?

The amount of auto insurance you need, like the cost of your premium, depends on your driving record and the amount of assets you have. You should consider the following:

What if I need to file a claim?

If you have an accident or must file a claim for other reasons, it is important to understand how your auto insurance company works. While every company will have their own policies and processes when it comes to handling claims, there are some similarities. Your policy will likely designate a set agency that will handle your claim as well as one person at that agency who is designated as your primary contact for all things related to the claim. Your insurance company should also have a claim form that you can use to report the accident and seek reimbursement from the other party or their insurance company, which may include reimbursement for:

Depending on the type of claim that needs to be filed, you will likely have several options available. The type of claim that needs to be filed is dependent on what the situation is. For example, if your car has been totaled in an accident with another vehicle, you might file an insurance claim with your insurance company. If you are filing a claim for damages, such as damage to your vehicle or damages done to another’s vehicle, it will likely go through a different path than your auto insurance claim would require as well.

Conclusion

Getting auto insurance not only protects you if you are in an accident, but it also protects other drivers in the event that you hit them or their vehicle. While every state has their own laws and requirements for specific types of insurance and coverage, all states require drivers to be covered under some form of auto insurance.

Auto insurance companies factor the cost of your premium into how they charge you for a claim after an accident occurs.