Auto insurance is something that drivers in this country must legally have if they want to utilize the vehicles they own. However, auto insurance comes in many different types and forms.
If you have never purchased an auto insurance policy before and do not understand what types of coverage you need, here is an explanation of the common types so you can determine what you need in the policy you choose.
Collision insurance is one of the most common forms of car insurance you can purchase, and it is something car lenders typically require for people who have loans on their vehicles. Collision covers your vehicle if you cause an accident that results in damage to your own car. Without this coverage, your insurance company would pay nothing if you damaged your own vehicle.
Car lenders require this for their own protection. If you wreck your car and have a loan on it, you may stop making the payments if you can no longer use your vehicle. Because of this, you must have collision coverage if you have an auto loan on your vehicle.
Comprehensive insurance coverage is another important type of coverage. While it is not typically legally required, it is something that most people need and should have. Comprehensive coverage provides protection against things other than collisions. This includes coverage for vandalism or damage that results from a tree falling on your car.
It also provides coverage for accidents involving animals. For example, if you strike a deer while driving your car and have damage to your car from this accident, your comprehensive insurance will protect you and cover the costs of the repairs needed. If you have a loan on your vehicle, your lender may also require this type of coverage.
For people looking for minimal coverage, choosing liability coverage is a good option. Liability coverage is the only type of insurance that is legally required for drivers, and this is primarily because it covers other people and not the person insured.
When you have liability coverage and cause an accident, the policy will not cover damages to your car, but it will cover damages to other drivers involved in the accident. You cannot legally drive your vehicle if you do not at least have liability coverage on your car.
The Cost of Your Policy
Now that you know the basic types of auto insurance coverage, you may have a good idea what types you should purchase. When you contact an insurance company for a quote, they will want to know what types of insurance coverage you want and need. In addition to your specific needs, insurance agents will base your quote on a few additional factors.
The other factors insurance companies use when calculating quotes include your age, gender, type of car, driving record and location. They will factor in the amount of coverage you need or want, and they will also base the quote on the amount you choose for your deductible on the policy. A deductible is an amount you pay if you file a claim. After you pay this amount, the insurance covers the remaining costs.
When you call for a quote, the insurance company will ask you questions to determine what level of risk you pose to them. Your answers will help them calculate a quote that is both affordable for you and protects them.
If you want to purchase an auto insurance policy, contact Sachs Walsh Insurance. We are a large, locally-owned agency and offer multiple types of insurance products. Call us today to learn more about the coverage you need and the costs for a policy.