What You Need to Know About Auto Insurance

Every year, millions of people buy new cars in the US. Shopping for cars is easy and exciting thanks to online shopping

Every year, millions of people buy new cars in the US. Shopping for cars is easy and exciting thanks to online shopping. However, millions also make decisions about auto insurance every year. The goal of every automobile owner is to find the best rates for their financial protection. One of the most efficient hacks is to look at companies for car insurance near you. The local insurers typically have better coverage at lower prices than national insurers.

While looking at car insurance, you will find several types of car insurance coverage. Here are a few that should concern you –

  1. Liability – liability insurance pays for the damage the vehicle owner might cause due to a collision. It is the minimum coverage, and every state mandates liability coverage for car owners.


  1. Comprehensive coverage – in car insurance, comprehensive coverage pays for the repair or replacement of any automobile or its part. It does not cover medical bills.


  • Personal injury protection – the “no-fault” coverage covers the medical expenses of the owner and the co-riders. It kicks in irrespective of liability.


  1. Collision coverage – it covers the cost of repairs or replacement when your car hits another one or even a stationary object. It does not cover damage from hitting an animal or hailstorms.


  1. Medical payments coverage – it is an optional part of the car insurance. It can cover the passengers of a car along with the owner. Most importantly, it covers listed members of the family, even when they were in another vehicle. The medical payments coverage is useful since it covers the policyholder in a bicycle accident or pedestrian accident.


  1. Flood insurance – the name is quite self-explanatory. Flood insurance kicks in during flood damage resulting from cloud bursts, persistent rains and waterlogging, rivers overflowing, dams bursting or levees breaking. If you live on a flood plain, you should consider getting flood insurance coverage immediately.


  • Uninsured motorist coverage – what happens when an uninsured motorist totals your car? Who pays the damages? In such cases, the uninsured motorist coverage in individual states covers the cost of repairs of your vehicle when the liable driver does not have insurance coverage. Additionally, it also covers the cost of injury and treatment or death.


  • Gap insurance – it is the most common car insurance in the US. The moment you drive off the showroom into the road, the value of your new car sinks like a stone. Therefore, new owners owe more than the car is worth. The gap insurance from reputable insurers covers this disparity.


  1. Mechanical breakdown insurance – although optional, mechanical breakdown insurance is beneficial. Your dealer or insurer might refer to it as an extended warranty alternative, vehicle repair plan, or vehicle service contract.


  1. Insurance extras – you can add multiple small products into your existing auto insurance policy. The extras you can add will depend upon your insurer. You might want to check if your insurance policy accommodates a temporary replacement vehicle, roadside assistance, new car replacement or coverage for pets.

Every state stipulates a minimum coverage. It is always smart to add extras to the minimum coverage since your car may be worth a lot more than the policy. Check with your dealer and insurance company on the minimum insurance requirement in your state before you commit.


Show More
Back to top button