When buying a car, you will likely spend time researching different makes and models before making a final decision. When you get your new set of wheels, you have another choice to make: which auto insurance policy to buy.
The right policy will give you peace of mind that you are protected if an accident does happen. Before making a commitment, here is everything you need to know about auto insurance coverage.
Liability Coverage
This will depend on where you live, but liability coverage is usually compulsory. This covers you financially if there is an accident and you are at fault. You should make sure your policy gives you enough protection for any bodily injury and property damage.
Liability coverage is also called third-party insurance and can assist you with court costs, car repairs, and hospital expenses relating to the other vehicle. This does not cover you personally, so additional insurance will be required.
Comprehensive Insurance
Comprehensive insurance gives your vehicle maximum protection. Depending on your insurance provider, it can cover damage and repairs due to accidents, rollovers, theft, fire, and weather events.
Often when you take out a loan to buy a new car, the lender will make comprehensive insurance a condition for approval.
Personal Injury Protection
If you are involved in an accident, it can have an impact on every area of your life. You can protect your finances with personal injury protection; this insurance can be included in your policy and cover the driver and any passengers.
Personal injury protection can be used to replace a loss of income, and cover medical or funeral expenses resulting from the accident. This may not be something you want to think about, but it is better to be prepared just in case.
It’s also helpful to note that PIP isn’t just for the driver. As stated on Accident.com, passengers are covered by this insurance too. So, if you’re driving with a passenger and there’s an accident, any medical costs can be claimed through this insurance by them too. It’s a good way of keeping everyone safe in the car.
Flexible Insurance
When it comes to auto insurance, there is no “one-size-fits-all” solution. Choose a company that understands your unique circumstances and can give you a personalized policy. For example, an experienced driver will likely have a cheaper rate than a new driver, and a car in storage should have a reduced premium.
Some insurers will offer discounted family coverage to help parents protect their younger drivers. Auto and property insurance can be combined into a package for one convenient monthly bill.
The Claim Process
In the case of an accident, you want an insurer who can process your claim quickly and efficiently. USAA, for example, makes this simple with their online claim center. With a few clicks, you can report thefts, damage, or collisions. Claims will be updated online so you can check the progress at any time of the day or night.
Roadside assistance can also be requested online. If you have locked your keys in the car, have a flat tire, or need a tow truck, help will be there when you need it.
Don’t Neglect Auto Insurance
Remember, some components of auto insurance will be compulsory. Having the right cover for your circumstances could save you time and money if an accident does occur.
You can protect yourself, your passengers, your vehicle, and third parties with a personalized policy. While it may not be something you want to think about, organizing insurance in advance could save you a significant amount of stress in the long term.
