Auto Insurance is something most people have and need. However, many people do not have a clear understanding of the coverage they should have.
Understand the coverage options and determining which options you “really” need. Talk to agents and get the best price. Get the right auto coverage at a fair price! Remember, an informed buyer is a wise buyer! Ever wonder how auto insurance rates are determined?
The formula used is more complex than the Da Vinci Code. It is likely that no human being could possibly understand the insurance rating system. However, knowing the basics will help in determining what to buy.
Every state in the United States requires car owners to have car insurance. Each state has established a minimum amount of car insurance. It is mandatory! The minimum coverage required is Liability coverage. This coverage protect other drivers – not necessarily you. If you have an accident and it is your fault, the cost of the damages is paid for by the Liability coverage.
What is Uninsured & Under-insured Coverage on My Auto Insurance Policy & Why Do I Need It?
An essential, auto insurance coverage is for Uninsured or Under-insured motorists. This is a coverage that will protect you should you be involved in an accident caused by an Uninsured or Under-insured motorist. It is referred to as UM/UIM. This stands for Uninsured and Under-insured motorist coverage. This coverage can be purchased for YOUR auto insurance policy. It is optional, but a very important coverage.
How Much Auto Insurance Do You Need?
Auto insurance is required by law almost everywhere in the United States. Auto insurance can protect us from financial loss in the event of an accident. But the question to be answered is “how much auto insurance do you really need?” Unfortunately, there is no one correct answer, but a range of questions & considerations…..
Auto Insurance coverages can be classified into two types of coverages – Vital auto coverages and Convenience auto coverages.
Vital Auto Insurance Coverages Includes
- Bodily Injury & Property Damage
- Uninsured/Under-insured Motorist
- Medical Expense Coverage
Convenience Auto Insurance Coverages Include, but are not limited to
- Comprehensive Coverage Or “Other than Accident”
- Auto Glass Replacement
- Towing & Road Service
- Rental Or Loss of Use Coverages
How to Lower Your Auto Insurance Premiums
A few simple steps may provide significant reductions in your auto insurance premiums. While you may being saying – “Oh sure they will, and where is the bridge you want to sell me?” – consider these tips.
Learn more about what factors are used to determine auto insurance rates CLICK HERE!