Having adequate auto insurance is essential for anyone who owns a car. It provides financial protection in the event of an accident or other damages to your vehicle. But not all auto insurance policies are created equal; some may offer more coverage than others, so it’s essential to understand what your policy should include and how much coverage you need. Here are seven things you should look for when shopping for auto insurance.
Liability Coverage
It’s the most basic form of auto insurance and provides coverage if you are responsible for another person’s injuries or property damage in an accident. Most states require a minimum amount of liability coverage, but higher amounts may be available depending on your situation and the type of car you drive.
Collision and Comprehensive Coverage
These two types of coverage protect you from financial losses if your car is damaged in an accident or by some other cause, such as a fire. Collision coverage pays for damages to your car caused by a collision with another vehicle or object, while comprehensive coverage provides protection against damage due to theft, vandalism, floods, etc.
Uninsured/Underinsured Motorist Protection
This coverage pays for damages if you are injured or your car is damaged by someone who does not have enough insurance to cover the costs. It’s important to check with your insurer about what level of protection you need and whether it’s offered in your state.
Medical Payments Coverage
This coverage typically pays for medical expenses resulting from an accident, regardless of who is at fault. It’s important to understand the limits of this type of coverage and ensure it meets your needs.
Rental Reimbursement
It helps you cover the costs of renting a car while yours is being repaired after an accident or other covered loss. This type of coverage typically pays for a specific dollar amount per day for a predetermined number of rental days after a claim. The maximum daily and total amounts that will be reimbursed may vary depending on the policy, so it’s important to check with your insurer to make sure you have enough coverage to cover the cost of renting a vehicle.
Roadside Assistance Coverage
Roadside assistance coverage is an optional coverage that covers the cost of towing, jump-starting a dead battery, flat tire services, and other roadside needs. This type of coverage can come in handy if you ever find yourself stranded on the side of the road due to car trouble. It may also provide help for lockouts, fuel delivery, or other emergency services. Depending on your policy, it may cover up to $100 in service costs per incident with no limit on the number of times you can use it.
Custom Parts and Equipment Coverage
This type of coverage will cover any damages or losses to parts and equipment installed after the automobile was originally purchased, such as custom paint jobs, speakers, wheels, spoilers, suspension systems, and more. This coverage typically does not pay for theft or vandalism to any custom parts or equipment. It’s crucial to understand the limits of this type of coverage and ensure it meets your needs.
Final Thoughts
By understanding what your auto insurance policy should include, you can ensure that you have adequate protection. Make sure to carefully review each policy component so you know exactly what is covered and how much coverage is provided. You may also want to compare quotes from Assurance IQ to get a deal on your auto insurance policy.
