When you own a vehicle, it is important to invest in car insurance. By having insurance, it will keep you from hefty fines, possible impoundment of your vehicle, suspension of your license, and even jail time that can result if you are convicted of driving without this important form of protection.
Different Types of Auto Insurance
There are several types of coverage drivers should consider. Liability car insurance is the most important part of the insurance because it protects you from the financial and legal repercussions of an accident affecting another vehicle, driver, or property. The benefits of liability car insurance will apply if find yourself responsible for damages to others, not to yourself or your own vehicle, in an accident.
Having only the minimum level of insurance means that you are leaving yourself open to a significant amount of risk if damages from the accident exceed your coverage levels. On the other hand, having too much car insurance means you might be paying excessive premiums for coverage you do not need. It is important to do your research when deciding how much liability insurance you need. We can also advise you on the correct amount you will need
Collision is the form of car insurance that will pay for damages to your own vehicle in an accident. If you owe any money on your car, you will likely be required by the bank to purchase collision insurance. Choosing the right deductible for you is an important consideration. The deductible refers to the part of any damages that you must pay yourself before your policy kicks in. Paying a higher deductible means forking over less each year in premiums because you are taking away some of the burden from the insurance company. If you choose a lower deductible, you will pay more for your policy because the insurance company is assuming more risk.
Comprehensive car insurance coverage is an extension of collision insurance that covers your vehicle when it is on the receiving end of damages from theft, weather, or fire. When your windshield is struck by a rock over the course of your travels, for example, it is comprehensive insurance that will pay to repair the crack. If you ever have a question about insurance or your current policy, make sure to contact us.