Why Do I Need Auto Insurance Coverage?
Auto insurance coverage is mandatory in most states if you own or operate a motor vehicle. It protects you from financial loss in the event of an accident. Auto insurance helps pay for repairs to your vehicle and medical bills following an accident. It also provides peace of mind when you’re on the road, knowing that you’re protected from unforeseen incidents.
What can affect my rates?
Several factors can influence your auto insurance rates:
- Vehicle: The make, model, year, and features of your vehicle can affect your rates.
- Driving Record: The number of driving violations and accidents you’ve had can impact your rates.
- Geographic Area: Where you live and drive your vehicle can influence your rates.
- Vehicle Use: How you use your vehicle, such as for pleasure or commuting to work or school, can affect your rates.
- Age: The age of the drivers covered on your policy and whether there are any drivers under the age of 25 can impact your rates.
- Credit History: Information found on your credit report, such as payment history, debt, bankruptcies, and other factors that predict your likelihood of making a claim can affect your rates.
- Deductible: The amount you agree to pay out of pocket at the time of a claim can influence your rates. The higher your deductible, the lower your car insurance premiums may be.
What coverage do I need?
Auto insurance requirements vary based on the state you live in. Most auto insurance policies include the following coverages:
Liability Coverages: These coverages include Bodily Injury coverage, which protects you if you injure another person in an accident, and Property Damage coverage, which protects you if you damage another person’s personal property.
Uninsured Motorist: This protects you and your passengers if you are seriously injured by an uninsured driver.
Underinsured Motorist: This protects you and your passengers from losses and damages suffered if injury is caused by the negligence of a driver who does not have enough insurance to pay for all losses and damages.
Full Coverage: Full coverage typically refers to Collision and Comprehensive coverages. Collision coverage pays for damage to your vehicle caused by its collision with another object. Comprehensive coverage pays for damage resulting from most causes other than collision.
What do I need for an Auto Quote?
To provide an accurate auto insurance quote, we need to know about your vehicle and how you use it. Please be prepared with the following information:
- VIN number
- The make, model, & year
- Specific model information, such as engine type or body type
- Whether it is owned or leased
- Primary use, such as for personal commute or business
- Safety features it may have, such as anti-theft devices or air bags
In addition to information on your vehicle, we would also like to learn more about you. Our agents may ask about:
- The age of all drivers and their driving experience
- Marital status and education background of all drivers
- The driver’s license status of all drivers
- Your vehicles’ garaging location
- Accident and violation history of all drivers
Using this information, we may then obtain a credit history report for an accurate depiction of your financial history.
What is the difference between Collision and Comprehensive coverage for my automobile?
- Collision and Comprehensive insurance are two different types of coverages that protect your vehicle in different ways:
- Collision insurance covers damages to your vehicle caused by an accident (collision). Collision insurance pays even if you caused the accident that damaged your car. The recommended amount of Collision coverage varies depending on the age and value of your vehicle.
- Comprehensive insurance is also known as “other than collision” insurance or “OTC”. It covers damage done to your vehicle from things other than collisions, such as: vandalism, disasters, theft, fire, impacts with animals, etc. Comprehensive does not cover any damage as a result of a collision. If you live in a high crime area, have a newer model vehicle, or a vehicle that is a common target of theft, Comprehensive insurance is highly recommended.
Am I covered by my own auto insurance when I drive my friend’s vehicle?
Generally, yes. However, in most cases your friend’s insurance would be the primary coverage, meaning you’d only access your own coverage in the event that the limits of his policy were met.
Who is covered by my car insurance?
Any licensed drivers in your household are generally covered to drive your car, as well as anyone else who has permission to use your vehicle. However, if you exclude someone from your policy, they are NOT covered when driving your car, meaning you could be responsible for all damages if they do take your car out and get into an accident.