Auto Insurance Coverage

If you own a car, auto insurance coverage isn’t an option. By law, you must insure vehicles that are titled under your name. Read on to find out more about the type of coverage you should have and why you should evaluate your coverage on an annual basis.

About Auto Insurance Coverage

Auto insurance coverage is designed to protect you in the event of an accident, loss, or theft. To get coverage, you need to purchase a policy from a licensed insurance agent, broker, or company.

The policy acts very much like a contract. You agree to pay a premium and the agent/company agrees to pay any losses you incur as defined in your policy.

Because there are so many different levels of auto insurance coverage available, determining the type of policy you need can be very difficult. This is why it is a good idea to research the different forms of coverage that are available prior to making any final decisions.

You may also want to speak to a qualified insurance professional in regards to your needs and budget. They may be able to offer you valuable advice and information on some of the different insurance options currently on the market.

Types of Auto Insurance Coverage

Depending on your needs and the laws in your state, there are certain forms of auto insurance coverage that are essential, and others that you may be able to live without if you are looking to save money on your premiums. Here is a breakdown of what you need to have versus what you may want to have:

Must Have Coverage

• Bodily Injury Liability – Liability coverage will prove to be very important should you cause an accident and injure your passengers, other motorists, or pedestrians. This coverage will pay medical bills, pain and suffering, rehabilitation costs, and funeral bills.

• Property Damage – If you cause property damage to another vehicle or someone else’s property, this coverage kicks in and pays the expense of repairs.

• Uninsured and Underinsured Motorist – Not everyone follows the law. Some people who are on the road are underinsured or not insured at all. This form of coverage will protect you and your passengers if your vehicle is involved in a hit and run accident or an accident with someone who has little or no insurance coverage.

Additional Coverage

• Collision and Comprehensive – Collision coverage is sometimes good to have because it pays to repair or replace your vehicle regardless of who is at fault in the accident. Comprehensive coverage acts in the same way, if your car is ever stolen or damaged in a natural event of some kind, such as a storm.

• Medical – This form of coverage pays medical bills incurred by you and your passengers no matter who is at fault in the accident. If you and your regular passengers have a separate health insurance policy this auto insurance coverage may not be absolutely necessary.

• Personal Injury Protection – Sometimes known as PIP, this type of coverage pays for in home health care costs and lost wages that result from an accident.

• Roadside Assistance/Towing – This coverage will pay or reimburse you if you need to have your vehicle towed as the result of an accident or breakdown.

Rates and Quotes

Many people make the mistake of staying with the same insurer year after year. What they don’t realize is that they are missing out on the chance to save a lot of money.

The only way to make sure you aren’t overpaying for auto insurance coverage is to get auto insurance quotes on a regular basis. At least once per year, you should do a price comparison between your current insurance company and competing auto insurance companies. You may be surprised at how much you can save.