Auto insurance is provided by car insurance companies who offer different levels of protection to the driver of the vehicle, passengers, third parties and the vehicle in the event of an accident. It’s down to you, however, to choose and purchase the right auto insurance policy for your needs. Part of being a responsible driver is ensuring you have adequate auto insurance to cover you, your passengers and other drivers on the road in the event of an accident.
Why You Need Insurance
Third party or Liability Insurance
Make sure you check the fine print of your policy to ensure numerous possible scenarios are covered. There’s no point in purchasing comprehensive coverage at a higher cost than liability insurance if all it covers is some vandalism or a cracked windshield. Comprehensive should mean comprehensive.
- Damage sustained to your vehicle during storms or natural disasters like tornadoes, hurricanes, and earthquake
- Damage caused by fire
- Damage caused by another person e.g. vandalism and theft
This type of insurance will cover medical expenses and personal injury costs of you and your passengers if you’re involved in a collision regardless of who is at fault.
- Damage done to your car by animals
- Damage sustained to your car via falling objects e.g. tree limbs, roof tiles.
- Rental reimbursement – pays for a rental car if your vehicle is off the road.Who Pays?
Comprehensive coverage normally makes up a large chunk of your car insurance premium, since damage to cars is one of the most common reasons people claim on their insurance. Even though comprehensive car insurance may be more expensive due to a higher premium, you can control the cost to an extent by managing your deductible.
How much you pay for your auto insurance policy depends on a number of factors. As we’ve discussed before, auto insurance is a business based on negating risk, therefore, how much you pay depends on how ‘risky’ a customer insurance providers deem you to be. In general, drivers who have a good, clean driving record, years of driving experience and are between 25 and 60 years old will have lower insurance premiums than others. Where you live, what job you do, the make and model of your vehicle, and how often you use your car will have an impact on your auto insurance rate.
When considering your deductible, remember that the top amount comprehensive car insurance coverage pays out in the event of a serious accident or damage is the total, current cash value of your car. Therefore, if your vehicle’s cash value is a similar amount to your insurance deductible (your car may be old or worn out), comprehensive coverage might not be the best auto insurance policy for you.