Get the most for your money when choosing an auto insurance policy
Why do you need auto insurance and what are different types of coverage? There are two equally important reasons to carry the right insurance coverage. The first is that it’s required by the law. While each state may be different in what they require motorist to carry, it is against the law to be driving a vehicle without having the minimum amount of coverage required by the state in which you reside. The second is that you need to protect yourself financially.
The type and amount of auto insurance you will need will depend on several factors. The state you live in will determine the minimum coverage required but there are several other variables to consider when determining how much coverage you will need as well as how much it will cost you. Here’s what you should know:
Collision: Covers your car in the event it is damaged as a result of you somehow being at fault. The accident could involve another vehicle or be a single car accident where nobody else is involved.
Liability: Covers damages to other vehicles as well as any medical costs incurred by passengers in your car or another vehicle. Liability coverage protects your assets should the other driver choose to sue you. It does not cover damage to your own vehicle.
Comprehensive: Coverage that takes care of damage due to theft, fire, vandalism, or other situations not related to driving.
Uninsured/Underinsured: This coverage protects you against uninsured drivers as well as those who don’t carry enough insurance to cover the damages that your vehicle may incur.
Deductible: This is the amount of financial responsibility you, the insured, will pay when a claim is filed. The difference between the deductible and the amount needed to cover damages is what the insurance company pays.
What factors will affect your auto insurance coverage?
The above are the types of coverage you may need. Below are factors that can determine how much you will pay for coverage:
Your driving record: Tickets and accidents will affect your premium which means you may be considered high-risk to ensure. If you have a good driving history you may be eligible for a good driver discount.
How much you use your car: The more you drive the higher your risk for getting into an accident. Driving a long distance and/or for work purposes may result in higher insurance premiums. Driving for “pleasure” or only occasionally, will probably cost you less.
Your age and gender: In general, more mature drivers have fewer accidents. Typically, insurance companies will charge more for drivers 25 years of age or younger. Women tend to have fewer and less serious accidents than men but individual driving history is what ultimately determines how much a person will pay for auto coverage.
Where you live: Due to theft and vandalism rates being higher in urban areas, drivers in urban/city areas will usually pay more than those living in small towns, rural and suburban areas.
The take and model of car you drive: Insurance companies look at the kind of car you drive, the likelihood of theft, and the cost of car repairs if damaged. They will take into consideration safety equipment as well as the potential damage it can inflict on others.
The amount and type of coverage needed: The make, model, and value of your vehicle will play a big role in determining how much coverage you will want and/or need. Your deductible will also play a part in your premium costs.
Erin Furlong, when you’re looking for an expert in determining your auto insurance needs look no further. I provide service to Temecula, Murrieta, Wildomar, Menifee, Hemet, Fallbrook, and the Inland Empire.