What Is Minimum Coverage And Do I Need More?

Minimum auto insurance coverage, in most cases, is not enough to ensure that you are completely protected from the financial and legal responsibilities that may result if you were ever to be involved in a car accident. Here are some facts about minimum car insurance coverage and whether it is enough for you.

What Does Minimum Coverage Include?

Minimum coverage is just that-the minimum. The amount of coverage you need to be legally insured as a driver. It covers you for a very specific amount of liability for any damage you may cause to others’ property, or for any medical expenses and lost wages that may incur as a result of an accident in which you are at fault. It does not provide you with any coverage for your own property or medical expenses for you and your passengers. In many cases the minimum amount of liability insurance may also not be enough if you are involved in a serious accident, and you will be personally responsible for the amount it costs beyond your coverage.

What Should My Minimum Coverage Really Be?

If you want to keep yourself protected as a driver, but still do not want to pay the high premiums, what types of coverage should you have? In general, it is smart to be sure you have both collision coverage, which will pay for repairs to your vehicle, and comprehensive coverage, which will protect you from natural disasters, theft, or vandalism in addition to your minimum liability coverage. This will protect you from out of pocket expenses for repairs to your own vehicle and any medical expenses you may incur. To keep your insurance expenses under control, choose the highest deductible you can afford.

The purpose of any type of insurance is to protect you from the expenses of unforeseen and unavoidable life events. Choosing coverage that provides the right protection is important, and finding a balance between protection and cost is the best way to do this.

Top Factors Affecting Auto Insurance Rates

Have you ever had a conversation with a friend or family member and wondered why their auto rates are so different from yours? The factors that go into determining the premium for an auto insurance policy are many, and the rates for two drivers can be very different. If you are wondering how the insurance company arrived at your rate, here are some of the factors that have an impact on your premiums.

Your Age And Experience

Your age and the length of time you have been driving are two of the biggest factors in determining insurance rates. Young drivers who are less experienced are statistically more likely to have accidents, and their accidents are more likely to be serious. Thus insurance companies rate for age and experience based on the risk they are taking by insuring you. You might hear that word a lot if you look into how insurance rates are determined: risk. The higher the risk a driver represents to an insurance company, the more they will be charged.

The Type Of Vehicle

The type of car you drive has a big impact on your rates as well. Some cars are more expensive to repair, more likely to be stolen, or considered more dangerous to drive due to high speeds (sports cars, for example). All of these things can lead to an increase in the premiums to insure that car. Older, less valuable cars can be cheaper to insure than newer, more expensive cars, because it will cost the insurance company more to repair or replace a newer car. And in some cases newer cars are more expensive to insure than older cars depending on the estimated availability of parts if the car was involved in an accident.

Where You Live

The zip code where you park your car at night is another determining factor in your premiums. If there is a lot of theft in your neighborhood, this might cause an increase in insurance rates, as the insurance company is taking on a higher risk of having to pay out on a theft claim.

How Much And How Far You Drive

If you have a long daily commute, you spend more time in your car than someone who works from home, which means you are more likely to be in an accident. The more you drive your car, the higher your premiums are likely to be. Again, you are at a higher risk of having a claim due to more frequent use of your car, resulting in a higher premium.

These are just a few of the many factors that go into determining what an individual pays for their auto insurance. Insurance companies rate each driver and vehicle based on the level of risk they represent-the likelihood that they will have a claim. The lower your risk level, the better your premiums will become.

What Is Minimum Coverage And Do I Need More?

Minimum auto insurance coverage, in most cases, is not enough to ensure that you are completely protected from the financial and legal responsibilities that may result if you were ever to be involved in a traffic accident. Here are some facts about minimum car insurance coverage and whether it is enough for you.

What Does Minimum Coverage Include?

Minimum coverage is just that – the minimum. The amount of coverage you need to be legally insured as a driver varies depending on where you live. But in most cases it covers you for a very specific amount of liability for any damage you may cause to others’ property, or for any medical expenses they incur as a result of an accident in which you are at fault. It does not provide you with any coverage for your own property or medical expenses. In many cases the minimum amount of liability insurance may also not be enough if you are involved in a serious accident, and you will be personally responsible for the amount it costs beyond your coverage.

What Should My Minimum Coverage Really Be?

If you want to keep yourself protected as a driver, but still do not want to pay the high premiums, what types of coverage should you have? In general, it is smart to be sure you have both collision coverage, which will pay for repairs to your vehicle, and comprehensive coverage, which will protect you from natural disasters, theft, or vandalism in addition to your minimum liability coverage. This will protect you from out of pocket expenses for repairs to your own vehicle and any medical expenses you may incur. To keep your insurance expenses under control, choose the highest deductible you can afford.

The purpose of insurance of any kind is to protect you from the expenses of unforeseen and unavoidable life events. Choosing coverage that does this is important, and finding a balance between protection and cost is the best way to do this.

Top Mistakes When Choosing Auto Insurance Coverage

You don’t need to be an expert to choose the right auto insurance policy, but you should be aware of some of the basics that will ensure you get the best rate for which you qualify and are protected appropriately. Here are a few of the most common mistakes made when choosing auto insurance, and the ways in which they can affect you.

Choosing Coverage That Is Too Low

Each state has a minimum requirement for liability coverage. In order to quote the lowest possible rates, some insurance companies will always quote at the state minimum. While this will ensure it is legal to drive your car, the minimum liability limit might not be enough to cover you properly in the event of an at-fault accident, especially if you own a home or condo.

When you request an auto insurance quote, be sure the liability limits are high enough to thoroughly protect you and your assets. If a serious accident occurs and your policy limits are quickly reached, you could find yourself in court facing a lawsuit for the rest of the damages, you can even have a lien placed on your home.

It’s better to be protected correctly in the first place. Sometimes an increase in coverage is only a matter of a few cents to a dollar.

Missing Out On Discounts

The number of discounts offered by most insurance companies today can be a long list. But it’s the major ones that you should pay the most attention to. The discount for having more than one policy with an insurer is often quite a large one. If you own a home, try to have your homeowner’s and auto insurance with the same company. It just makes sense, financially and for the sake of simplicity. You will not only get a discount on the auto policy, but on the homeowner’s premium as well.

Believe it or not insurance companies do offer new discounts from time to time to help their costumers save money on their insurance premiums. It is always important to ask your current insurance agent or insurance representative about any discounts that you might be missing out on.

Skipping Affordable Extra Coverage

Most auto insurance policies have an option for roadside assistance. Some may include it automatically, while others require a small extra premium. This coverage will give you protection in case of a mechanical breakdown, locking your keys in the car, or other situations in which you require help. The yearly cost of adding this coverage is far less than the cost of having your car towed, so it just makes sense to add it, but many people don’t realize it is even available.

Even if you have AAA it is still something that you may want to consider having. If you are in a bind and need to call AAA they might not be able to get to you for a few hours but the roadside assistance that your insurance company offers may be able to send someone out to you a lot sooner.

Small mistakes can cost you a lot of money, and have even more serious consequences. Avoiding them is simple if you are aware of them when you select an auto policy.  We are always more than happy to review your insurance coverage with our customers (new or old) and potential new customers.