Auto Insurance 101

Auto Insurance 101

Shopping for auto insurance online may be a great way to get information and rough quotes, but there are drawbacks to actually buying your auto coverage that way. One of the drawbacks with buying car insurance online is that it may not match your needs. Many people go looking for instant online insurance, only to find it is difficult to know whether it offers the right amount and type of protection. Buying a no-frills basic car insurance policy may meet state requirements, but may not provide the compensation you need to recover from an accident.

In addition, auto insurance liability requirements vary by state, and include a minimum amount for bodily injury costs per person and per accident as well as a minimum for property damage liability. If you cause an accident, liability coverage pays those costs, up to the limits set for your policy. As you consider your policy needs, it is important to keep the coverage limits in mind. The costs of a severe crash can quickly exceed the limits. If that occurs, you will have to pay for costs out of your own pocket. The cost of legal defense alone can cause devastating financial hardship, even if it turns out you are not found to be at fault. For this reason, it is important to think carefully about the coverage you may need in the event of an accident. If you buy car insurance online without professional advice, you may not be fully covered.

In addition to required liability coverage, you may also want collision and/or comprehensive coverage to protect your investment in your vehicle. Traffic accident scenarios are common, from fender-benders to highway crashes. In fact, according to the Census Bureau, over 10 million accidents occur on U.S. streets each year. The key is to be prepared so that the costs involved in recovering from an accident are not devastating to your finances. Together, collision and comprehensive can provide protection for everything from accidents to theft and vandalism.

There are three primary types of insurance coverage:

  • Liability insurance: Covers the costs associated with injuries and property damage you are responsible for if you cause an accident.
  • Collision: Covers the costs to repair or replace your vehicle after an accident.
  • Comprehensive: Covers damage to your vehicle from causes such as auto theft and weather damage.

There are also several different types of coverage which may be available to you, including:

  • Medical payments: Covers the costs of injuries for you and others in your vehicle after an accident, regardless of who was at fault.
  • Personal injury protection (PIP): Similar to medical payments coverage, PIP coverage can pay your medical costs after an accident, regardless of fault. But PIP offers expanded coverage that includes coverage for lost wages.
  • Rental reimbursement: Pays a certain amount daily for a replacement vehicle if yours is in the shop for repairs.
  • Towing and roadside service: Provides emergency roadside assistance and towing to help you get your vehicle back on the road or to a shop for repair.

This is where we come in. It is important to discuss your risks and coverage options with a qualified insurance agent from Covenant Insurance Services who can help ensure that you don’t have coverage gaps. We can help you assess your needs based on factors such as the number of drivers in your family and their ages. We will also look at bundling multiple vehicles together, or combining your home and auto policies under one insurance company, so you can get the best value for your dollar. As a full service independent agency, we can help you review several policy choices, coverage limits, deductibles and pricing and choose the best fit for you.

When you work with Covenant Insurance Services, you are not limited to one insurance company and the solutions they provide. Instead, you will have a range of insurance plan choices from top insurance companies so we can find the best policy for you. Get a fast and accurate quote now to experience the Covenant difference for yourself.

 

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Information about Auto Insurance provided by Trusted Choice

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