AutoInsurance

The Right Auto Insurance Coverage for You and Your Family

From the day an individual receives their driver’s license, life becomes a little more complicated. The reality of adult life begins to set in, and it is intimidating. Parents do their best to give their children the world, but sometimes it can be a tad expensive. Adding your child to your auto insurance policy can make your premium rise.

Auto insurance coverage may seem confusing. Insurance companies have jargon and tend to make policies seem more complicated than they are. Nonetheless, almost every single state requires vehicle owners to have auto insurance. Even though this adds to your monthly bills, it is worth it if something was ever to happen. Auto insurance is also a great tool to give parents peace of mind knowing their child is covered. New drivers are often nervous and tend to get in more accidents. Likewise, auto insurance is there to help defray any costs so that families won’t drown in any medical or damage bills.

The Extent of Auto Insurance

When shopping for auto insurance, agents often try to upsell and give individuals more coverage than they need. Auto insurance is a policy that is purchased by an individual. The policy covers everything that has to do with their car. The coverage is there to help people with the extra costs that come with owning a vehicle. It can assist with losses from an accident or only just your car breaking down.

A person must pay an annual premium that is broken up into monthly payments. Within the time the policy is in effect, the insurance company may pay for any auto accidents or vehicle damage. Vehicle damage is anything from a cosmetic scratch to an internal issue.  

How does a company propose a premium? The premium rate depends on various factors. The main determining factors range from age, sex, driving record, and years of experience. Even though these are the first things a company looks at, the type of policy you choose also depends on the amount of the annual premium. For instance, full coverage is going to be much higher than liability because it encloses more protection for your assets.

What is an essential factor in the company’s decision? Your driving record is the most crucial factor. Most people say not to judge a person by their past, but when it comes to driving, that is not the case. Previous studies show that only 30% of drivers improve their driving skills over some time. By the age of 25, the majority of people have created their unbreakable driving habits. 

While insurance companies try to provide propaganda to help improve an individual’s driving skills, it doesn’t always work. A new trend for most insurance establishments is to offer phone applications that track your driving and save you money. These methods are popular with parents of young drivers and people who have an excellent driving record. For parents, this also gives them an idea of how their child drives without them in the car.

Types of Auto Insurance Coverage

While there are various types of auto insurance, let’s discover what is best for you. There are three basic types of auto insurance; these include coverage for property, medical, and liability. The property portion of insurance covers everything for your vehicle. Medical coverage is there to pay for any medical attention needed in an accident. Lastly, liability ensures you aren’t held reliable when causing damage to someone else. Read on to discover detailed explanations of each type.

Property

Collision Coverage

As stated above, property coverage is here to protect your vehicle and any damage done to it. Within this category, there are multiple options to up your coverage. The most basic class that every policy offers is collision. Collision coverage is for your vehicle’s protection if you get into an automobile accident. The collision is the best asset to have in policy because it ensures that damage done to your car is covered.

Comprehensive Protection

The next category under the property is comprehensive protection. Comprehensive coverage protects everything the is not a collision. Mostly, this coverage helps when it comes to “acts of God,” meaning something an individual cannot control. No one can control the weather and the things it may bring. Comprehensive coverage is there to pay for a range of occasions, such as hail damage. If you are in an area that receives terrible storms or has harsh winters, this is something to add to your policy.

Roadside Assistance

In many cases, roadside assistance is the most used category. It’s not every day you may get into an accident; however, it is more common to have a flat tire. Roadside assistance covers a cost range from $75 to $100. Roadside assistance includes towing, spare tire replacement, and if you run out of gas. Your insurance company pays for any incident when you’re stuck on the side of the road. Whether you need it for towing or labor costs, roadside assistance is your best friend.

Rental Car Coverage

Lastly, this category is not a necessity; however, it may come in handy if you and your family travel often. Rental car coverage is something you can manipulate in your favor. You don’t have to pay for this all the time. You can add to or take off your policy at any given time. Rental car coverage was made so that your policy reimburses the client for the cost of a rental car. There are several reasons that you may need a rental, such as if your vehicle is in the shop or totaled. If you choose to add this to your policy, keep in mind, it raises the premium at least $20, if not more.

Medical

The most common debt of Americans is associated with medical bills. No one wants to pay them because they are so expensive. Each kind of auto insurance policy is required to implement some sort of medical coverage. There are two categories to this that include PIP (personal injury protection) and medical payment coverage. Necessary auto policies include a certain amount of medical payment coverage.

Personal injury protection is the most complicated between the two. Having PIP covers your medical expenses regardless of who is at fault in an automobile accident. The coverage is often referred to as the “no-fault protection.” PIP is an extra blanket of coverage on top of medical payments because it ups your medical allowance in a policy. Nonetheless, adding this coverage can make for an expensive premium.

What exactly does PIP pay for? For example, if you get into an automobile accident and have PIP, you do not have to worry about any medical care or transportation. Personal injury protection is there to pay for ambulance rides, emergency care, follow up appointments, and prescriptions. Also, personal injury protection usually kicks in before your health insurance. This is an excellent option if you have any young drivers on your policy.  

Medical payment coverage is a little different. After an accident, medical bills seem to come flooding in from all directions and can be overwhelming. The coverage is there for you and your passengers if either were to be harmed in an accident. The only bills this protection pays for are the initial medical bills accumulated in the first 72 hours. There are different deductibles to choose from when creating a policy with your agent. The range takes you from liability auto insurance to full coverage insurance.

Liability

The least expensive portion of auto insurance is a liability. Liability is the aspect of auto insurance that takes care of any expenses of someone you may hit. If you were to get into an accident and total someone’s car, this would cover them, but not you.

State Laws About Auto Insurance

Each state has its separate laws about auto insurance. For example, if you live in Florida, you must have PIP on your policy. Sometimes, it seems unfair that state law forces you to spend more money, especially if you have a young driver on your system because the premium is already increased. Whether it seems fair to everyone or not, a law is a law, and unless you want to deal with the consequences, you have to abide by them.

Even though each state requires drivers to have different amounts of coverage, you must have some type of car insurance. The penalty for not having car insurance ranges from a simple warning from police to a hefty ticket and sometimes a court appearance. If this is a recurring problem with an individual, they might lose their license or even face a small amount of jail time.

Tips on How to Decide on Coverage

While it is always an excellent option to do some research online, choosing an insurance company is challenging. The various companies make it challenging due to their competitive rates and the differences in the policy coverage. Consider your family size and how many separate policies you need, then decide on the amount of coverage you want. Never rule out some insurance agent shopping, as receiving a few quotes can make this step a little easier. Next, figure out the budget you have each month for your bills and find your price range. The most challenging part about choosing an insurance policy falls with the price range.

All in all, whether you have a young driver or are just looking to change auto insurance companies, it is always good to understand what is covered. Some agents do an exceptional job of explaining the various types of coverage included in a policy, but some do not. Likewise, do not let an agent upsell you on a plan. Do not get more coverage than you and your family need and can afford.

Tags
Show More

Related Articles

Back to top button
Close