Auto Insurance

Auto Insurance Frequently Asked Questions

Nothing is ever set in stone regarding auto insurance, leaving plenty of questions for auto buyers. Here’s a list of the most frequently asked questions to help you navigate purchasing your auto insurance.

1. What Auto Insurance Coverage Should I Have?

This is an excellent question. However, the right answer depends on several variables.

  • Liability. Liability auto insurance comes in bodily injury and property damage. It’s worth noting that these forms of insurance will cover parties in the other vehicle if you’re at fault, in addition to the cost of any damage done to their vehicle. However, there’s no coverage for YOUR vehicle, you, or your passengers.
  • Personal Injury Protection. In the event you or your passengers are hurt, medical expenses are covered even if you’re at fault.
  • Collision. The same rules apply here, only to the automobile. If you’re at fault, damages to your vehicle are covered.
  • Comprehensive. Comprehensive is slightly different. It provides a full coverage type of plan but covers vehicles that aren’t involved in an accident with another vehicle. This could be a tree branch or any other form of damage the vehicle incurs.
  • Uninsured motorist. This covers you if you’re involved in an accident, and the other driver is at fault, and they DON’T have insurance.

Understanding the different forms of insurance, there are a few scenarios you want to keep in mind. Liability is generally required in most states (may be referred to as the state minimum) and is usually the best choice for drivers with older vehicles that aren’t under financing. If your vehicle is being financed or leased, it’s mandatory per the financial institution that you maintain comprehensive and collision, otherwise known as full coverage.

2. What are 3 Things We Should Consider When Choosing Auto Insurance?

When selecting your auto coverage, there are several important items to keep in mind. These may impact the overall price of your policy, so you want to be sure you’re adhering to the proper guidelines.

  • State Regulations. It’s imperative that you’re aware of the state regulations regarding auto insurance. In some states, you can lose your license as a result of failure to carry the right amount of coverage.
  • Shop Around. Don’t be afraid to check several sources for your policy. The price of auto policies can vary significantly, even hundreds of dollars per month in some cases, just based on who you select as your carrier. If you receive a quote and. think you can do better, tell the agent to save your quote, and you’ll call them back after contacting other companies.
  • Understand Your Coverage. It’s extremely common for a driver to get into an accident and assume that something is covered, but it is the opposite. Read the fine print and ask your insurance agent ANYTHING you’re uncertain about. Our finance team is always happy to answer your questions regarding insurance. The last thing you want is to get into an accident in your brand-new car and find out something important isn’t covered.

3. How Much Auto Liability Should I Carry?

In many states, the minimum coverage for most liability policies is between $25,000 and $50,000. That said, it’s never a bad idea to go a little more than the minimum. Some drivers, whether they purchase new, used, or certified pre-owned, choose to purchase additional coverage just to be safe.