Own a Car? Auto Insurance Will Protect You

Fran
Fran Majidi
January 12, 2021

When you buy a car, auto insurance is important to consider. You’ll need to keep the car insured for as long as you own the car. A lapse in car insurance coverage will end up in you paying more on your next auto insurance premium. So maintain your coverage and save money on your car insurance. If you should crash your car, auto insurance can protect you by paying your medical bills and repairs to your car. And if you should be the cause of an accident with your car, auto insurance will help you pay for other people’s injuries and property damage.

Let’s take a look at the different types of auto insurance you can buy plus ways to save money on your premium.

Liability. If you ever cause a crash with your car, auto insurance, in particular liability insurance, is a needed resource. Liability insurance pays for other people’s injuries and property damage up to your liability limit. Nearly every state requires liability coverage for their drivers. But these are minimum liability coverages. Having just the minimum liability required in your state may not protect you enough if you are at-fault in a serious accident. The rest of the damages would come out of your own pocket. That is why insurance experts advise higher liability limits. Experts recommend $100,000 bodily injury liability coverage per person and $300,000 bodily injury liability coverage per accident. The Insurance Information Institute recommends these amounts in addition to $100,000 property damage liability per accident.

Medical Payments. This type of insurance helps with the cost of medical care for you and your passengers resulting from injuries in a car accident. When there is a crash with a car, auto insurance such as Medical Payments helps to pay important medical bills.

Personal Injury Protection (PIP). Also known as no-fault insurance, this coverage pays the cost of your lost wages and medical bills, up to the PIP policy limit. No-fault insurance will cover these expenses regardless of who is responsible for the accident.

Uninsured and Underinsured Motorist Coverage. Uninsured motorist coverage helps pay for damages caused by a driver who doesn’t have insurance. Underinsured motorist coverage protects you in the event of an accident where the other party is at fault and doesn’t carry enough insurance.

Collison. This type of insurance is coverage that helps to repair or replace your car if it is damaged in an accident with another vehicle or object such as a fence, tree or guardrail. If you are financing a car, your lender may require that you carry this coverage for the duration of the loan.

Compare Auto Insurance Rates for Free

Comprehensive. This insurance covers events that aren’t covered by collision insurance. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado. If there is a loan on your vehicle, your auto lender may require you to carry comprehensive insurance for the length of the loan.

Both comprehensive and collision coverages require deductibles. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Choosing a higher deductible, $1,000 or higher, will help to lower your auto insurance premium.

Towing and Roadside Assistance. Many insurance companies offer towing and roadside assistance coverage to their customers. This coverage provides 24 hours a day, seven days a week roadside assistance. This service covers things such as towing, tire changing, locksmith service and jumpstarts. Should you have trouble with your car, auto insurance coverage that includes roadside assistance can be essential when you are stuck on the side of the road.

Personal Umbrella Policy. This insurance coverage provides additional liability coverage above the limits of an auto insurance policy. A personal umbrella policy helps protect your assets from lawsuits. If you are in a serious accident with your car, auto insurance coverage that includes a personal umbrella policy protects your family’s assets with additional liability protection.

Rideshare. This coverage helps to protect drivers for rideshare companies like Uber and Lyft. This insurance provides coverage during periods not covered by company or personal insurance.

Ways to Save Money on Car Insurance

Once you know the auto insurance coverage you want, you’ll want to get that auto insurance premium as low as it can go. Here are some tips on saving money on your car insurance.

Bundle Policies. Bundle your auto insurance policy with another insurance policy such as a home insurance policy and you’ll save money on your premium.

Pay Once or Twice a Year. Rather than monthly payments, pay the annual amount or the six- months amount. Premiums are lower when you pay just once or twice a year.

Get a Multi-Car Discount. Got more than one car? Insure two or more cars with the same insurance company and enjoy a multi-car discount.

Be a Safe Driver. Following the rules of the road and being a good driver with no accidents and no speeding tickets will earn you a good driver discount.

Be a Homeowner. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your home and enjoy the savings on your auto insurance premium.

Be a Married Motorist. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles. So if you have tied the knot recently, be sure to let your auto insurance company know. You’re entitled to a discount.

If you have a car, auto insurance should be a priority. It’s always a good idea to compare, and you can start comparing over 200 insurance carriers by filling out one brief questionnaire. Start by entering your zip code below.

Get a Free Auto Insurance Quote Online Now.

Related Articles

Auto Insurance How to Do a Change of Address at DMV

An easily overlooked task is updating your address with your local Department of Motor Vehicles. Every state requires you to update your address with the DMV after any move as soon as possible, especially if you are bringing a car with you.

Auto Insurance What Exactly Is a Totaled Car?

In this article, we'll explain what it means when your car is totaled. You'll learn about the claims and settlement process and whether or not your insurer will pay for your damaged vehicle.

Looking for Auto Insurance?

Compare rates from dozens of companies in less than 3 minutes.