Buying a new car is always exciting, but it also comes with a few important responsibilities. One thing you need to consider is finding the right auto insurance policy. Not all insurance plans are the same, which is why it’s important to compare all of your options. A local insurance agency with access to the top carriers’ plans can also speed up this process and make it much easier for you to find the best policy for your vehicle.
Overview of Auto Insurance
Car insurance is key in protecting you against financial loss, whether it is an accident or theft. The insurance company will pay your losses according to your policy in exchange for you paying a premium. Each policy is individually priced to let you customize coverage amounts to best meet your needs and budget.
Types of Auto Insurance Coverage
Different types of car insurance are available. Some coverages are a necessity, while others can be added to your policy. An insurance agency can work with you to help make these decisions easier.
Here are some of the most common types of car insurance coverage available.
1. Liability Coverage
Liability coverage is essential in nearly all states, as this coverage pays for damage or injuries you cause to others in an accident. It can even provide legal defense if you are sued as a result of an accident.
2. Collision Coverage
If you hit another vehicle or an object, collision coverage can help pay for any repairs to your car. Collision coverage is typically required if you are financing or leasing your vehicle.
3. Comprehensive Coverage
Comprehensive coverage handles what collision does not, such as hail damage, fallen objects, or car theft. Getting this coverage is important in protecting against the unexpected.
4. Personal Injury Protection (PIP)
Often mandatory in no-fault states, PIP covers any medical expenses for you and all of your passengers after an accident. It also doesn’t matter who is at fault. It can also cover other expenses, such as lost wages and rehabilitation services.
5. Uninsured/Underinsured Motorist Protection
This coverage steps in when you are hit by a driver who lacks sufficient insurance. You don’t have to worry about footing the bill for another’s lack of coverage, and it can be a lifesaver in the event of a major accident.
Increasing Your Coverage with Add-Ons
Additional insurance options are also available. These policies aren’t a requirement, but they can still be a great option. An insurance agency can go over these options to see if they are the right fit for your needs.
Roadside Assistance
Many insurance companies offer an add-on for roadside assistance. Getting this add-on helps with towing, flat tires, lost keys, and other on-the-road emergencies.
Rental Reimbursement
If your car is in the shop due to an accident, rental reimbursement will cover the cost of a rental car. Rental reimbursement coverage is particularly beneficial if you use your vehicle for daily commuting or business.
Gap Insurance
Do you owe more on your vehicle than its current market value? Gap insurance covers the difference, which can be essential if your car is totaled or stolen. Most cars need to be brand new or less than a year old to qualify for gap insurance.
How Much Coverage Do You Really Need?
Several factors determine how much auto insurance you need. Trying to handle this on your own can be a challenge, which is why it’s a good idea to reach out to an insurance agency. These professionals will work with you to understand your situation and help you find the best policy available.
Here are the biggest factors impacting your insurance coverage.
Value of Your Car
The more expensive your car, the more coverage you will need. High-value vehicles often require comprehensive and collision coverage not just to cover the cost of repairs but also to deal with potential replacement costs.
Risk Factors
You also need to consider your driving habits, environment, and location. If you frequently drive in high-traffic areas or areas prone to severe weather conditions, your risk of accidents or damage greatly increases.
Financial Security
How much can you afford to pay out-of-pocket in the case of an accident? Higher coverage can mean less stress, but it’s crucial to balance your need for protection with what you can realistically afford.
Tips for Working with Insurance Agents
An insurance agent can play a key role in helping you find the ideal insurance coverage. Choosing the right plan will give you peace of mind, and you will know that you are well-protected even if your vehicle is totaled.
Here are a few tips on working with insurance agents.
Be Honest
Always provide accurate information about your driving history and vehicle. On the other hand, inaccuracies can lead to issues with claims later. Being honest with your insurance agent is always the best option.
Ask Questions
Make sure you understand what each part of your policy covers. Don’t hesitate to ask about discounts, the claims process, and how to reduce your premiums. Staying well-informed helps you make the best choices for your situation.
Review Annually
Your needs can change, as can the details of your policy. Review your coverage every year to make sure it still meets your needs. These annual reviews can help you adjust your coverage as your life changes, like moving to a new area or changing jobs.
Need Auto Insurance? Give Wellcovered Insurance a Call Today!
Wellcovered Insurance partners with the leading insurance providers to help you find the best auto insurance policies. Our goal is to make it simple for you to choose the right insurance coverage. When it comes to auto insurance we go beyond car insurance and can also help you find the ideal RV, motorcycle, and boat coverage.
Our company also offers a variety of other insurance choices, whether you are in the market for homeowners, rental property, condo, flood, commercial property insurance, and more. The values at Wellcovered Insurance include staying helpful, over-communicating, taking action, defining any problems, and finding the best solutions.
We are happy to answer all of your insurance questions, and you can even visit our office in Orange City. Staying active in the community and meeting the different needs of each customer is always a priority.
Reach out to Wellcovered Insurance today to learn more about auto insurance!
