Car Insurance
Car insurance can be confusing and intimidating, with so many policies and options available. However, it is essential that your vehicle has the right type of auto insurance coverage so if you ever face theft or get into an accident, you are financially protected. Whether you're a first-time driver or just looking for more information about your car insurance policy, we've got you covered! So, sit back, relax, and let us guide you through the world of car insurance.
Types of Car Insurance and What They Cover
Car insurance coverage can be confusing, but it doesn't have to be. Here are some of the different types of car insurance and what they cover.
Liability Insurance
This is the most basic type of car insurance that nearly all states require. It covers the damage to other people and property if you are at fault in an accident. It does not cover your own damages or injuries.
Personal Injury Protection (PIP)
This type of insurance covers your medical expenses and lost wages if you are injured in an accident, regardless of who is at fault. In some states, PIP also covers funeral expenses and death benefits.
Comprehensive Insurance
This type of insurance covers damage to your vehicle that is not caused by an accident, like theft, vandalism, or even a fire. It does not cover accidents.
Collision Insurance
This type of auto insurance covers damage to your car when it collides with another object, such as another car or a tree. It does not cover damage from accidents caused by other drivers who do not have insurance.
Medical Payments Coverage
This type of insurance covers medical expenses for you and your passengers if you are injured in an accident. It does not cover injuries sustained by pedestrians or cyclists.
Underinsured Motorist Coverage
This type of insurance covers damages sustained by you and your passengers if the other driver does not have enough insurance to cover all costs.
Uninsured Motorist Coverage
This type of insurance covers damages caused by a driver who does not have any insurance at all.
Gap Insurance
If you finance or lease a car, gap insurance covers the remaining balance on your loan or lease if your vehicle is totaled or stolen.
There are also additional coverages for insurance policies, including bodily injury insurance, damaged property coverage, and roadside assistance for a flat tire, rental cars during repairs, or running out of gas. The types of coverage you need vary based on state laws and the factors that affect your car insurance rates. No matter which type of auto insurance you have, it’s important to understand what it covers and how it works. Knowing this information can help you make sure you have the right coverage for your needs.
Common Car Insurance Companies and the Coverage They Provide
There are many different car insurance companies out there, and each one offers a different set of car insurance coverage options. Here is a look at some of the most common car insurance companies and the coverage they provide:
Progressive
Progressive offers a variety of different options, including liability coverage, collision, comprehensive, and personal injury protection.
State Farm
State Farm offers a variety of different coverage options, including liability, collision, comprehensive, personal injury protection, and medical payments.
Allstate
Allstate offers a variety of different options, including liability, collision, comprehensive coverage, personal injury protection, and medical payment coverage.
Geico
Geico offers a variety of different coverage options, including liability, collision, comprehensive, personal injury protection, and medical.
Nationwide
Nationwide offers a variety of different options, including liability, collision, comprehensive, personal injury protection, and coverage for medical costs.
Farmers Insurance
Farmers Insurance provides a variety of different coverage options, including liability, collision, comprehensive, personal injury protection, and medical payments.
American Family
American Family offers a variety of different options, including liability, collision, comprehensive, personal injury protection, and medical payments.
USAA
USAA offers a variety of different coverage options, including liability, collision, comprehensive, personal injury protection, and medical payments.
Liberty Mutual
Liberty Mutual provides a variety of different options, including liability, collision, comprehensive, personal injury protection, and medical payments.
Travelers
Travelers offers a variety of different coverage options, including liability, collision, comprehensive, personal injury protection, and medical payments.
On top of some of these common electric vehicle manufacturers, there are others taht are quickly making names for themselves in the EV market. Expect to find vehicles from Volkswagen, Lordstown Motors, Mercedes, Hyundai, XPeng, BMW, KIA, Li Auto, and Fisker as well.
While all these brands offer reliable electric vehicles, the cost varies significantly from one brand to another. All these brands have a solid track record when it comes to quality and longevity.
Auto Insurance Premiums and What Affects Them
Your car insurance rate is determined by a variety of factors. Each individual's car insurance costs will be different than others based on their unique profile. Here are some of the most common criteria that affect car insurance premiums:
Points:
If you have moving violations or accidents on your record that took points off your license, this will affect your premium.
Title brand:
If your car has a salvage title or is considered a high-risk vehicle, you will typically pay more for insurance.
Tickets:
Speeding tickets, parking tickets, and other traffic violations will also cause your car insurance rate to go up.
First-time drivers:
Teen drivers and those with no previous driving history will usually pay more for insurance than those with experience
Vehicle history:
If you have a clean driving record and your vehicle has no major accidents or damage, you will pay less for insurance than someone with a less favorable history.
Driving record:
Insurance companies look at how safe a driver you are. If you have a good driving record with no violations or accidents, you'll pay less for insurance than someone with a poor driving history.
Age:
Younger drivers tend to pay more for insurance than older drivers because they are seen as riskier drivers by insurance companies
Location:
Where you live affects your auto insurance rate to some extent. Areas with higher rates of car theft and vandalism will usually cost more to insure than other areas.
Type of vehicle:
The type of vehicle you drive can affect your auto insurance rate. Sports cars and luxury cars often have higher average car insurance costs than other vehicles due to their higher repair costs and higher risk of theft.
Usage:
How often you drive affects your premium. If you use your car for business, this will usually result in a higher premium than if you only drive it for pleasure.
Credit score:
Your credit score can affect your insurance premium. Insurance companies use this to assess how likely you are to make payments on time.
To get the most affordable car insurance costs, you need to do your best to have a good balance between these criteria. The better you look on paper, the lower your auto premiums should be.
Driving Record and How It Impacts Car Insurance Premiums
Your driving record is one of the most important factors in determining your car insurance premiums. Insurance companies use your driving record to assess your risk as a driver, and the higher your risk, the higher your premiums will be.
A clean driving record means you have no accidents or traffic violations on your record. Being accident-free is the best possible scenario for your car insurance premiums and could save you a lot of money on premiums.
One or two minor violations, such as a speeding ticket, may not have a major impact on your premiums. However, multiple violations or a serious offense, such as a DUI, will very likely cause your premiums to increase significantly.
If you have an accident on your record, this will also lead to higher premiums for most companies. Even if the accident was not your fault, insurers may still penalize you for it because it increases their risk of having to pay out a claim.
What Makes Someone a High-Risk Driver?
There are many factors that contribute to making someone a high-risk driver. Some of these include:
These are just some of the things that can make someone a high-risk driver in the eyes of car insurance companies. If you're considered high-risk, it's important to shop around for car insurance and compare insurance rates from different companies since some auto insurance companies specialize in high-risk drivers, then reach out for a car insurance quote. You may also be able to save on car insurance if you take a defensive driving course.
Documents You Need for Getting Car Insurance
There are a few documents you will need when getting car insurance:
- Your driver's license
- Your vehicle registration
- Proof of a current auto policy in good standing
- Your most recent auto insurance policy declaration page
You should also bring along any other documentation that may be required by your state or auto insurance company. This may include proof of residency, income, and other important information. You will need these documents whether you are insuring a car you own or a car in someone else’s name. Just make sure you can provide proof that you should be insuring the vehicle.
Car Insurance Claims and How to File Them
If you're in an accident or your car is damaged in some way, you will need to file a claim with your car insurance company. This can be a stressful process, but it doesn't have to be. Here are some tips to help you through the process:
- First, you will need to contact your auto insurance company and let them know that you need to file a claim. They will likely have a 24-hour number that you can call.
- You will need to provide some basic information about the accident or damage, such as when and where it happened and what type of damage was done.
- Then, your insurance company will assign their insurance adjuster to review your case. This person will investigate the accident or damage and determine how much your auto insurance company should pay for the repairs.
- Once the adjuster has made their determination, you will be contacted with the decision. If you agree with the decision, then the repairs can begin. If you do not agree, then you can appeal the decision or negotiate with the adjuster for a better settlement amount.
- Once you've reached an agreement on the settlement amount, you will be asked to sign a release form. This means that you are agreeing to accept the settlement and waive your right to further legal action.
- After you have signed the release form, your auto insurance company will issue a check for the agreed-upon amount. You can then take this check to your mechanic or body shop and have them begin repairs, or you can opt to use that money towards a new car.
Filing a car insurance claim doesn't have to be overwhelming. Following these steps should make the process easier and help you get the repairs that you need in a timely manner.
Can You Legally Drive Without Car Insurance?
Only New Hampshire allows drivers to operate a vehicle without insurance. However, drivers are typically required to show proof of financial responsibility in the form of a bond or deposit with the DMV in order to legally drive without auto insurance.
All other states require drivers to carry at least the minimum amount of auto liability insurance. Driving without auto insurance is illegal in most states and could lead to fines, license suspension or revocation, and even jail time, depending on the circumstances.
