I Don't Want To Pay For Auto Insurance! What's It For Anyway?
Drivers, especially those with expensive cars and newer models, have a lot to think about when it comes to auto insurance. What's the point of buying insurance if I don't need it? What does car insurance really cover? The list goes on. But as an owner of a car, you're legally obligated to carry auto insurance if you're in the United States. So how do you choose which ones are best for your needs and wallet? With this blog post, we'll try our best to answer these questions and more with information specifically for drivers who want their information laid out in simple terms.
Virtually all states require car owners to have automobile insurance, which is often grouped under the title "auto insurance." Generally speaking, auto insurance is made up of two components: liability insurance and collision coverage. For the sake of clarity and brevity, we'll stick with these terms, but keep in mind that what's listed here will probably apply to either of these two categories.
With liability insurance, which covers injury and death caused by accident or own fault, most states require drivers to carry a minimum level of coverage. On average, individual car owners can be required to carry any amount from $25,000 – $250,000 in liability coverage depending on personal circumstances and state law. This amount is known as the "liability threshold," and it also determines how much your insurance will need to pay out for medical treatment, lost wages, property damage and other related costs.
Liability coverage can be further broken down into two types: bodily injury and property damage. Bodily injury covers injuries to people or other living things. Property damage covers the cost of repairing or replacing another driver's car or property. Liability insurance usually only covers a portion of the repair costs for a damaged car or property – it does not cover the full amount of what repairs would actually cost if you had to pay out-of-pocket.
Collision coverage is what most people consider "auto insurance," and it covers losses beyond what's considered a car's fair market value (such as damages to your car from someone else's accident). Collision coverage is generally required to be the same amount for every vehicle, so one car owner won't be required to carry more protection than another. This makes collision insurance a lot less expensive and streamlined compared to liability.
The last thing we'll mention in this article is uninsured motorist (UM) coverage, which is extra protection that most drivers should have regardless of where they live. UMC will pay for medical costs and other expenses resulting from accidents with uninsured drivers. It also works to protect against hit-and-run accidents, in which case damages only apply to the amount of coverage you carry.
Now that we've covered the basics, we'd like to offer some tips and tricks for finding the best auto insurance. First off, don't buy auto insurance from just any company. Although they may promise low rates and high coverage limits, many are disreputable and will end up charging you much more than what you should be paying. Before giving a company your business, check out their financial scores with the Better Business Bureau and research online reviews from real customers. If there are unresolved issues with your chosen company's customer service or billing practices (such as unauthorized charges), look elsewhere for another policy. It's also a good idea to ask friends, family or coworkers for recommendations on reputable insurance companies and trustworthy agents.
Another tip is to comparison shop for a policy that offers the coverage you need at an affordable price. This can be done by calling different companies and requesting quotes. If you're having trouble finding affordable UM/UIM coverage, consider buying supplemental add-ons from other companies instead of main auto coverage from one provider. Before purchasing a new policy, read through all the fine print in your policy document (usually called the "policy declaration page") to ensure that you know exactly what you're getting with your monthly payment. This allows you to avoid the "surprise" of unexpected cost increases due to forgotten add-on requirements. If you're looking for an auto insurance policy that doesn't lock you into a high renewal rate or contract period, then consider buying a whole life or permanent life insurance policy instead.
In closing, the best way to find affordable car insurance coverage with minimum hassle is by shopping around, doing your homework and asking those who have more experience than you. Also, remember that it's always important to shop around and compare the different options at the same time. When shopping for auto insurance, don't be afraid to ask questions – especially if they concern your financial situation or driving history. The more you know, the easier it is to decide what kind of insurance coverages are right for you and your family.
For more information about different types of auto insurance, visit our car insurance policy page. To get a quick, free quote today, call us at 888-852-4484! We're always happy to help answer questions and assist with any paperwork or policy changes that may be needed for your specific situation.
Author: John Sestina John is a writer for InsuranceQuotes.com where he spends his time researching and analyzing quotes on auto insurance, health insurance, life insurance and more. He's been in the financial services industry for over 10 years specializing in life and accident insurance. John has helped many clients save thousands of dollars by comparing policies, shopping online and comparing quotes from top carriers. John is a writer for InsuranceQuotes.com where he spends his time researching and analyzing quotes on auto insurance, health insurance, life insurance and more. He's been in the financial services industry for over 10 years specializing in life and accident insurance. John has helped many clients save thousands of dollars by comparing policies, shopping online and comparing quotes from top carriers.
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