2024-01-01 · personal, auto

Auto Coverage

Overview

Auto insurance helps pay for injuries and property damage caused by car accidents. Policies combine required coverages (like liability) with optional protections (like collision and comprehensive) to match your risks and budget.

Core coverages

• Liability: pays for injuries or damage you cause to others.
• Collision: covers damage to your car after an accident.
• Comprehensive: covers non-collision events (theft, hail, vandalism).
• Medical payments/PIP: covers medical expenses for you and passengers.
• Uninsured/underinsured motorist: protects you if the other driver lacks coverage.

Common exclusions and limitations

• Intentional damage or illegal activity.
• Commercial use without a proper endorsement.
• Wear and tear or mechanical breakdowns.
• Coverage caps: limits apply to liability and medical payments.

Cost drivers

• Driving history: tickets and accidents increase premiums.
• Vehicle type: repair costs and theft rates affect pricing.
• Location: dense areas can raise collision and theft risk.
• Deductible level: higher deductibles lower premiums.

How to compare policies

1. Match liability limits to your assets to reduce personal risk.
2. Pick deductibles you can afford if you need to file a claim.
3. Check discounts for safe driving, bundling, or telematics.
4. Review claims service ratings to avoid hassles after an accident.

Tips for saving

• Bundle auto with home or renters insurance.
• Maintain a clean driving record.
• Ask about usage-based or low-mileage discounts.

Frequently asked questions

Do I need comprehensive and collision? If your car is newer or financed, these coverages can protect your investment.

What should I do after an accident? Exchange info, document the scene, notify your insurer promptly, and follow claims instructions.