How Well Do You Know Your Auto Insurance Policy?

Are you aware of the exact coverage that your auto insurance covers Did you review all of the fine print? Are you aware of any potential liability or expenses that could arise from your auto insurance policy? The proper amount of auto insurance is not only a legal requirement, but it is also a safety net for everyone who drives a vehicle. We will now take a look at auto insurance’s various features, as well as some things to be aware of in the fine print.

Auto insurance: Liability Liability insurance is the section of your policy that is required under law. This insurance covers you for damage to another vehicle, as well as for injuries suffered by passengers or drivers in an accident. Although liability requirements can vary by state, experts recommend that you have a policy that covers $50,000 for the initial injury, $100,000 for any additional injuries, and $25,000 for property damage.

No one can predict an accident, but knowing that you have the right amount of liability insurance will help you to sleep better at night should it happen can make your life easier.

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Auto Insurance: Comprehensive/Collision
This insurance, also known as “comp and collab”, is designed to protect your vehicle in the event of an accident or other adverse event. The policy limits will vary depending on the type of insurance you have, so be sure to read the fine print.

Auto Insurance: Uninsured/Underinsured Motorist
Comp and collision will protect your vehicle from damage due to an accident, theft, or hurricane. However, you might want to cancel this coverage if these payments are more valuable than your car. In this case, you will want to add uninsured/underinsured motorist to your policy to cover the damages to your vehicle in the event you are involved in an accident with a dead-beat driver without liability insurance.

Auto insurance: Deductible

The deductible on your auto insurance policy can be described as the minimum amount that you have to pay before insurance kicks in. Your insurance premiums will drop if you have a higher deductible (e.g. $2,000 or $1,000). Before deciding on a deductible, consider the car’s net worth. This could help you save hundreds or even thousands of dollars per year on your premiums.

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Auto insurance: What You Need to Know
Look at the following list and consider whether these insurance bonuses are included in your policy.

  • Towing. You’re probably familiar with the cost of towing. However, not all insurance policies cover it. Yours will.
  • Reimbursement for Rental Cars A rental car will be required if your car is damaged or stolen. This cost is not included in most insurance policies.
  • Personal Injuries Protection. This protection is available to help with things such as lost income and child care. In the event of an accident.
  • Sound System Coverage. Many people consider their sound system to be more valuable than their cars. In the event of theft, damage or loss, this coverage will reimburse you for the cost of a new system.

The list of “extras” and bonuses is only a small selection of hidden costs you could incur if your policy is not right for you. Ask questions and carefully read the policy before you sign up for an insurance company. It can be a great way to save money and time down the line.

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