You’ve just bought your dream car. Life seems perfect.
Two months later you get into an auto accident. The car is totaled.
Turns out your auto insurance policy won’t pay for the damage.
Maybe you didn’t even think you needed auto insurance.
To avoid costly problems in the future, it’s important to find the right auto insurance. But auto insurance is complicated and the wrong decision can cost you.
But auto insurance is complicated and the wrong decision can cost you.
That’s why we’ve compiled this guide to help you buy the right auto insurance for your needs.
What Should I Know About Auto Insurance?
In AAA’s 2016 annual Your Driving Costs study the average cost to own and operate an auto was between $6,579 for your average small sedan and up to $10,492 for a large sedan.
This is a 6 year low due to falling gas prices.
While this might seem like great news, it has actually contributed to national auto insurance costs rising to $1,222 per year.
Why? Cheaper gas allows people to drive longer and more often, resulting in more accidents.
With that in mind:
What Do These Auto Insurance Terms Mean?
There is several different types of auto insurance coverage to consider.
It’s important to know what they are and how they might cost, or cover you if you’re in an accident:
- Liability Coverage: For when you’re at fault and you’ve involved another auto. It covers only those you’ve hit. It does not cover your car or anyone in your car during the accident.
- Bodily Injury Coverage: Pays the medical expenses of anyone you’ve injured from another car. Maximum coverage can often be described as a “100/300” policy. Policies cover up to a maximum for a single person ($100,000) and all occupants of the auto (up to $300,000).
- Property Damage: The amount your auto insurance will pay for damage done to the other car when you’re at fault.
- Personal Injury Protection: Covers you and your occupants’ medical bills in an accident. Often you can afford to buy the minimum if you have good health insurance coverage. Check both coverages before making a decision.
- Comprehensive: Covers you if your car has been stolen or damaged, but was not due to an accident.
- Collision: Covers repairs to your car when you’re in an accident.
- Uninsured/Underinsured Motorist: Covers you when you’re involved in an accident with someone who isn’t insured fully or at all.
Will Personal Factors Affect My Auto Insurance Coverage?
Your coverage can vary depending upon a few personal factors.
- Make and Model
- Driving Record
- Age, Gender, and Marital Status
- Vehicle Use
- Prior Auto Insurance Coverage
What Are Other Factors in Auto Insurance I Need to Know?
- Minimums: Each state differs in their minimum auto insurance coverage policies. Check to see what your state does and does not cover.
- Deductibles: A lower deductible sounds great when first buying insurance. However, it means higher premiums and a bad accident could cost big in the long run. Do some hard thinking before you decide what deductible to take.
- Discounts: Some auto insurance companies offer discounts for good driving, customer loyalty and having certain safety features in your car. Check to see if your auto insurance company offers any discounts.
- Combining Policies: Often insurance companies will offer up to a 15% discount if you combine your home insurance with your auto insurance policy.
Even when you’re armed with all the right information, buying the right auto insurance coverage for yourself can still be tricky.
Let our team of professionals find you the right auto coverage today.