The Ultimate Guide to Auto Insurance – Everything You Need to Know
There’s no question that auto insurance is a necessary evil. Nobody enjoys paying for car insurance, but it’s a vital part of driving legally in most states. And with the cost of medical care and lawsuits constantly on the rise, it’s more important than ever to have good auto insurance coverage.
But with so many different types of coverage, and so many different insurance companies to choose from, it can be hard to know where to start. That’s why we’ve put together the ultimate guide to auto insurance.
The Basics of Auto Insurance
Auto insurance is a contract between you and an insurance company. You agree to pay premiums, and in exchange, the insurance company agrees to pay for certain types of financial losses that might occur as a result of owning and driving a car.
There are six primary types of coverage included in most auto insurance policies:
- Bodily injury liability: This coverage helps pay for medical expenses and lost wages if you or a passenger is injured in an accident that is your fault.
- Property damage liability: This coverage helps pay to repair or replace another person’s property (like their car) if you damage it in an accident that is your fault.
- Collision: This coverage helps to repair your own car if it is damaged in an accident, regardless of who is at fault.
- Comprehensive: This coverage pays to replace your own car if it is damaged by something other than a collision, like theft, vandalism, or weather damage.
- Underinsured/uninsured motorist: This coverage helps for your medical expenses and property damage if you are hit by a driver who does not have insurance or does not have enough insurance to cover the damages.
- Personal injury protection (PIP): This coverage, required in some states, helps to cover for medical expenses and lost wages if you get injured in an accident, regardless of who is at fault.
Most states require you to have bodily injury liability and property damage liability coverage, and some states also require additional types of coverage like personal injury protection or uninsured/underinsured motorist coverage.
You can typically purchase different levels of coverage, with higher limits providing more protection in the event of a loss. You will also have the option to purchase collision and comprehensive coverage, although these are not required in most states.
Once you’ve chosen the coverage you want, you will need to select an insurance deductible. An insurance deductible is the amount of money you will pay out-of-pocket before your insurance company starts paying for a covered loss. The higher your deductible, the lower your premiums will be. But keep in mind that you will need to have enough money saved up to cover your deductible in the event of a loss.
Need The Best Auto Insurance?
If you’re looking for the best auto insurance coverage, look no further than Premier Choice Insurance. We offer a wide range of coverage options to choose from, so you can get the protection you need at a price that fits your budget. Contact us today to get started.
