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 What
is auto insurance?
An auto insurance policy is a contract between
you and an insurance company. You pay a premium. In exchange, the
insurance company promises to pay for specific car-related financial
losses that you may have during the term of the agreement.
Do you need it?
You need auto insurance because it's a legal requirement. State
laws typically say that as a driver, you either must have insurance,
or be able to provide evidence that you have the financial resources
to pay a judgment against you, if you should cause injury or damage
to another person. An insurance policy is the easiest way to document
that you can pay damages if you must.
You also need auto insurance to protect yourself
financially. If you or anyone for whom you're responsible seriously
injures another person, you can be held liable for the injured person's
medical expenses, rehabilitative therapy, and long term nursing
care, as well as for his or her lost earnings.
Who is covered under an auto policy?
Your policy covers you, your spouse, and other
family members who live in your household and are entitled to drive
one of your vehicles.
What is covered under the policy?
Your policy covers injuries or damages you cause
to someone else. Most state laws require that you carry a minimum
amount of liability insurance, which pays for injuries or damages
you cause to someone else. (We recommend that you carry much more
than the minimum - - enough to protect all your assets.)
What else is covered? That's up to you. Once
you've met the legal requirements (and we tell you what these are
when you get a quote), you should select other types and amounts
of coverage that will tailor your policy to your own needs. Here's
what an auto policy can cover, above and beyond your liability:
- Your car Your automobiles as listed on
the policy, and any additional vehicles you buy over the next
year. (Just make sure you register them with your carrier through
QuickenInsurance within 30 days of purchase.) Other vehicles?
Get an endorsement.
- Your cars against collisions
Your car is covered against collisions it
may have with any other object, no matter who caused it. (See
collision insurance for more detail.)
- Your cars against damage from almost
anything else Vandalism, theft, broken
glass, storms, and falling objects. (See comprehensive insurance
for more detail.)
- You, your passengers, and your car
against uninsured or underinsured motorists
If you're hit by someone who either doesn't have insurance,
or doesn't have enough insurance to cover the accident, your
loss is covered under your auto policy. (See uninsured, underinsured
insurance for more detail.)
- You and your passengers for medical
injury payments Reasonable medical
(and funeral) expenses incurred as a result of injuries sustained
in an accident. (See medical payments insurance for more detail.)
What affects your auto insurance rates?
- Where you live Where you live and drive
your car has a significant impact on the cost of your insurance.
This is because the frequency of things like vandalism and car
theft, and the cost of things like car repairs and medical bills,
vary enormously from one region to another. For example, operating
a car in Chicago, Illinois, can cost twice as much as operating
a car from nearly anywhere in South Dakota.
- The make and model of your car
The cost of insurance depends a great deal
on what type of car you drive, too. (It can be helpful to bear
this in mind when choosing a car, especially if you're on a
tight budget.)
- Your driving record Your
insurance rates will be affected by any tickets you've received
and violations of which you've been convicted over the past
several years.
- Your age Statistically,
younger drivers get in more accidents and tend to get more tickets.
What can you do to reduce them?
- Choose your car Choose a car that's less
expensive to insure.
- Take a class
Driver safety classes can help reduce your rates.
- Contest that ticket Fees
for fighting tickets usually add up to far less than costs of
having the ticket on your driving record. (It may even be worth
your while in some cases to hire an attorney to fight a ticket!)
And often a ticket can be reduced or thrown out if the police
officer doesn't show up in court.
- Drive safely There's
no surer way to keep the cost of insurance down than to be a
careful driver.
How do you get the best policy at the
best rate?
Request a quote or contact
us.
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