Car Insurance: all you should know
Car insurance
Car insurance is a form of legal protection that covers damages to third parties and their property, as well as injuries caused in a motor vehicle accident. Many states require all drivers to carry a minimum amount of liability coverage.
However, you can add additional liability and collision coverage to your policy to increase your protection and save money in the long run.
Liability is the most important part of your insurance policy as it helps pay for medical expenses and property damage if you cause an accident. The amount of bodily injury liability you need varies depending on your state’s laws and your individual driving record.
If you’re a new driver or an older driver who doesn’t drive often, the best way to lower your car insurance costs is by avoiding tickets and driving safely.
Most car insurance policies also include an uninsured and underinsured motorist provision that pays for injuries to you or your passengers if you are in an accident with a driver who is either underinsured or uninsured.
How Does Car Insurance Work?
Typically, car insurance involves two components: premiums and deductibles. The premium is what you pay monthly, bi-annually, or yearly to keep your car insured and the deductible is the amount you pay when filing a claim.Liability is the most important part of your insurance policy as it helps pay for medical expenses and property damage if you cause an accident. The amount of bodily injury liability you need varies depending on your state’s laws and your individual driving record.
If you’re a new driver or an older driver who doesn’t drive often, the best way to lower your car insurance costs is by avoiding tickets and driving safely.
Having a good driving record will make your premiums lower and may even get you a 'disappearing deductible' where your deductible decreases every year you don’t have a claim.
Comprehensive Coverage
This type of insurance can help cover repairs or replacements for your car if it’s damaged in a collision with another vehicle or object. It also can protect your vehicle from theft, vandalism, and fire.Collision Coverage
If you have a car loan or lease, you’ll need to get collision coverage. This is required in most states and can save you money if you ever need to file a claim for a covered loss.- You can choose to insure other vehicles, such as a motorcycle or campervan, with a multi-car policy. This will usually come with a discount for each vehicle added.
- Your insurer should be able to accept your car’s registration number and can accept any other details you supply. Be sure to tell them about any changes in your circumstances, such as a change of address or job, so they can update your policy.
- Adding more than one driver to your policy should not be done without consent from both the main and additional drivers. This includes family members and friends who might borrow your car to go for a weekend away, a long drive or even visit you at home.
Personal Injury Protection (PIP)
PIP, which is commonly known as no-fault insurance, pays for the medical expenses of you and your passengers after a crash, regardless of who was at fault in the accident. It can also pay for other qualifying expenses, including lost income or funeral fees.Most car insurance policies also include an uninsured and underinsured motorist provision that pays for injuries to you or your passengers if you are in an accident with a driver who is either underinsured or uninsured.
If you’re involved in an accident with an uninsured or underinsured driver, it’s important to report the incident to the police and your insurer right away so you can get compensation for any injury-related costs.
