Some type of car insurance is required by law in most states across the country. Insurance premiums have increased over that last few years causing most Americans to pay more money each month.
Now, more than ever, it's important for customers to shop around and find the deal on new car insurance plans. The first plan presented is likely not the right fit.
Follow our guide to find the most affordable policy with the right coverage for you!
Types of Coverage
Car insurance isn't a one size fits all situation. There are a wide variety of options available to customers that can be customized to fit specific needs.
The different levels of insurance cover different levels of accidents or possible repairs. Before signing up and purchasing an insurance policy, a driver should take a realistic look at their driving history and situations.
Those who have a history of accidents and needed car repairs, probably want a more thorough coverage. Where those who don't travel far for commutes or other outings can probably get by with less coverage.
It's highly recommended to get as much coverage as you can afford, whether you think you'll have to use it or not. There can be major financial difficulties after auto accidents if insurance doesn't cover everything (including medical, repairs, or lawsuits).
No matter the situation, a customer will be able to find a level that will work for them. Let's take a deeper look into the most common types of car insurance.
Liability insurance is used to cover any costs that come to any person or property that occurs in an accident caused by you. This insurance doesn't cover any damage done to you or your property during the accident.
Most states require at the very least this type of insurance so that any damage you cause in an accident will be taken care of.
The money from this type of insurance policy could be used to cover car repairs, property damage, medical bills, or legal fees. But, again, this is just for the victim of the accident, not the policyholder.
This type of car insurance is divided into two different types as well; bodily injury liability and property damage liability. Their names explain the type of coverage they offer very well.
Liability insurance protects everyone on the road by guaranteeing coverage during accidents.
Collision insurance is the counterpart to liability insurance and covers you as the policyholder in the event of an accident.
This insurance policy will cover repairs for your vehicle or give you the value of the car if totaled. An important distinction between liability and collision though is that collision doesn't cover medical bills, lost wages, or legal fees like liability would.
While most states don't require collision insurance in order to legally drive on the roads. But most lenders will require it to get full funding for the purchase. They want to protect their investment.
Even though collision insurance is helpful in some situations, it also leaves gaps in coverage. The customer may end up paying a large portion of repairs or other consequences of an accident.
For those customers who want a little more coverage and protection, comprehensive car insurance is usually the next step.
These policies cover damage done in other situations beyond accidents. That could include natural disasters, severe weather, theft, or vandalism. The name is quite misleading. A customer will need both comprehensive and collision to be fully covered.
The combination of comprehensive and collision is a great option to help you in a wider variety of situations that may arise. Many lenders will require this combo before financing will be approved.
Other Coverage Options
Some customers may decide to add additional coverage measures to their high risk auto insurance plans.
These would likely include specific coverage for medical bills that result from an auto accident. Even minor accidents can result in injuries that need treatment in order to return to normal daily activities.
Some may also get a towing or breakdown coverage which would help with expenses from a breakdown instead of an accident.
There are all different kinds of add-on options depending on the company that is offering the policies. Customers can decide which are or aren't necessary for their situation.
Car insurance might seem expensive but it's also not something you want to penny-pinch on. The cost for coverage is also variable on your driving history and will go up if you have any infractions or accidents within the year.
If you want to be covered for anything that might come up but don't want to pay the full price, ask your insurance agent for any available discounts.
Some insurance companies offer a decreased rate for those customers who are insuring more than one vehicle. Drivers that can show a history of safe driving often receive a discount for coverage. Also, students can generally receive a discount for good grades during high school and some colleges.
Many customers take the prices offered to them right away. But that can be a big mistake if you qualify for any of these (or the many not mentioned) discounts. It doesn't hurt to ask and you may save yourself a lot of money!
Similarly to looking and asking for discounts on your insurance, potential insurance customers should shop around for the right agency.
If you're constantly asking yourself "why is my car insurance so high?" it might be time to find a new agency. There are so many options available, you don't have to work with anyone that isn't filling your needs in the way you want.
Often customers focus on the large, well-known insurance agencies. But often a smaller, more local company can give you better service and coverage.
It's worth taking the time to find the right agency to get the right insurance.
Find a New Car Insurance Plan
Auto accidents cost the United States more than $380 million in medical costs each year. Which just goes to show how often these kinds of crashes are occurring across the country.
The chances of needing an insurance policy to help pay for damage caused by an accident are fairly high. So get yourself a new car insurance plan that gives you peace of mind and confidence that you'll be able to handle whatever comes.
If you're interested in exploring auto insurance options, contact us today!
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