auto insurance policies

What features matter most?

• What’s covered?

  The amount of coverage you need varies from state to state. If you are a cautious person, you might opt for a more expensive policy with better coverage. If you have a lot of assets, experts recommend that you get enough liability coverage to protect them; otherwise the other party involved in an accident could have attorneys go after your assets as well.
  • Read the policy: Carefully examine the insurance policy to understand exactly what is covered and make the right adjustments to suit your unique situation.
  • Limits: Pay attention to the limits set by the insurance policy. In some cases, there will be a maximum payout, which may not be as high as you’re looking for.

• Are there exceptions?

  Sometimes policies will have exceptions and you’ll end up paying out of pocket for an accident or repair that you thought would be covered.
  • Other driver’s don’t have insurance: If you get into a collision with an uninsured driver, you’ll have to pay for repairs out of your own pocket and sue for damages.
  • Car theft: Insurance policies don’t always cover car theft.
  • Damage from natural accidents: Some insurers don’t cover collisions with animals, tornados, earthquakes, damage from falling objects, etc.

• Mechanics and replacement parts

  Some insurers will push you to use shops in a direct-repair program or use cheaper replacement parts rather than the original equipment manufacturer.
  • Are service providers reputable?: Check the fine print of the policy to see if the insurer has control over which service providers and parts are used for repairs.
  • Can you choose a service provider?: Choosing your own mechanic is the best case scenario, but they aren’t always covered by insurance policies.
  • What if the replacement part breaks?: Find out how the insurer handles faulty repairs and how quickly they will take care of it.

• Cost

  The cost of auto insurance is a big factor in most people’s decision about which policy to choose.
  • Premium: The premium is the monthly or yearly price that you pay for your insurance plan.
  • Deductible: Deductibles are the amount of money you are required to pay before your insurance company starts to pay out. The lower your deductible, the higher your premium.
  • Coverage factors: Depending on what level of coverage you opt for, the cost of your insurance will vary. Your past driving record, credit rating and level of coverage will all affect how much your policy costs.

• Optional coverage

  In addition to basic auto insurance, there are optional coverages available for drivers with different needs.
  • Collision coverage: Collision coverage pays for the expenses to repair your car. If you drive an older car that isn’t worth much money, it may not be worth it to pay for collision insurance.
  • Comprehensive coverage: This covers things that could happen to your car that might not be covered by standard insurance, such as weather damage, running into an animal or other factors. It’s a good idea to opt for comprehensive coverage if you can afford it, but it can get costly so if you drive an inexpensive car it’s probably not worth it.
  • Uninsured motorist protection: This protects drivers in the event that they get into an accident with a person who isn’t insured but is to blame for the accident. It will cover damages to the car and injury in the event that another driver is unable to pay out.

• Insurance company ratings

  An insurance company’s reputation is important. Good companies should have a quick response time, be adept at handling claims and have excellent customer service.
  • Reviews and complaints: Check the reviews and ratings on an insurance company before purchasing a policy. Be aware of any complaints that have been filed.
  • Handling claims: How long does it take for the company to handle a claim? Do you have to pay out of pocket first or do they cover the expenses immediately?

  What are different types of auto insurance policies?

  • Liability insurance

    Liability insurance covers you if you’re in an accident and the accident is deemed to be your fault. It will cover repairs to damaged property as well as medical bills resulting from injury. Most states require at least a minimum amount of liability insurance but it’s a good idea to purchase extra protection.

  • Collision coverage

    If you are involved in an accident, collision coverage will pay for the repairs to your car. If your car is damaged beyond repair, good collision coverage will pay for the value of your car.

  • Comprehensive coverage

    If something happens to your car that isn’t a straightforward accident, such as weather damage, hitting an animal or theft, comprehensive coverage will pay for the damage to the car.

  • Personal injury protection

    Personal injury protection is imperative for all drivers. Medical bills following an accident can be devastating and good personal injury coverage will cover medical expenses as well as missed work expenses.

  • Uninsured motorist protection

    About one in six drivers is uninsured, even though it is illegal to be. Uninsured Motorist Protection offers payment when you are in a collision with another driver who is at fault and does not have insurance. It is usually relatively inexpensive to add uninsured motorist protection to a car insurance policy.
    

    Who's it for?

    • Drivers who own a car

      Auto Insurance is required by law for drivers in most states. Drivers who own a car and drive it often should definitely have auto insurance to cover the cost of damages to their car and personal injury. Otherwise, repairs and medical costs can be very expensive.

    • Drivers who occasionally drive cars not their own

      If you don’t own a car but occasionally drive rental cars or cars that belong to other people, you should still have auto insurance. The car owner’s insurance typically doesn’t cover other drivers unless that is stipulated in the policy.

    • Car owners who have other people drive their car

      If you own a car that other people drive, such as a hired car, you should have auto insurance that covers the additional driver as he or she may not have insurance.

    
    source: auto insurance policies