Automobile Insurance Quote

Is your vehicle financed?

Financed vehicles are commonplace in today’s world. If you are making payments on your vehicle, you only have one option when it comes to insurance coverage, comprehensive and collision, otherwise known as full coverage.

While full coverage insurance is the most expensive, it covers you and your vehicle, no matter what the circumstance. If in an accident, your insurance will cover your medical bills and up to 80% of your vehicle’s face value, no matter who was at fault. If your vehicle is stolen or damaged in a non-collision situation, you are covered up to 80% of your vehicle’s face value. It is important to clarify how much of the face value of your vehicle your insurance company will cover. No company covers 100%. This prevents fraudulent activity. However, the amount of coverage they offer can vary from one company to the next.

If your vehicle is not financed, you must still carry the state’s minimum coverage. Each state’s minimum is different but your insurance company should be able to advise you on the amount to ensure that you are complying with state law. This minimum coverage is referred to as liability insurance. Liability coverage has two components; bodily liability and property liability.

Property liability covers any property that is damaged in a collision for which you are considered at fault. This can include third party vehicles as well as other inanimate objects like street signs and guard rails. Bodily liability covers the medical bills that are acquired by third party individuals when you are considered at fault in an accident. If you are not at fault in an accident, you are not responsible for any damages. Your damages and medical expenses are not covered under liability insurance.

If you have full coverage, how much can you pay out of pocket?

With full coverage insurance, deductibles will determine how much money you pay out of pocket for damage to your vehicle that does not exceed the face value. Although higher deductibles are more affordable, they can also leave you with a large sum to pay if your vehicle is damaged. Recently, one insurance company has created ‘the shrinking deductible.’ This company offers you a higher deductible when you start the policy. For each year that you are accident free, your deductible amount is lower, at no additional cost.

Do you have health insurance?

Whether you have full coverage insurance or liability insurance, you should consider this important question. If you do not have medical insurance and are in an accident in which the other driver is either uninsured or does not have adequate coverage, you may be left with unpaid medical bills. Carrying this type of auto insurance will ensure that you are protected in the event that you are injured in an accident that involves an uninsured or underinsured motorist. Some states require that you carry this coverage. However, in others it is optional.

Do you frequently have others in your vehicle or multiple drivers?

If your vehicle is often full of people or you have multiple drivers in your home, you may want to consider adding personal injury protection. This coverage may be required, depending on your state. However, it is usually optional. Unlike uninsured and underinsured motorist coverage that is based on third party fault, this type of insurance covers medical expenses and, in some instances, lost wages in the event that someone is injured in your vehicle, regardless of fault.

Is your car paid for but high in value?

If your vehicle is paid for but it still has substantial value, you may be able to cover your vehicle without having to carry full coverage. This is done through a physical damage addition to your liability insurance. Like full coverage insurance, your vehicle is protected, regardless of fault, from collision, theft, and non-collision damages. This coverage addition also has a deductible, similar to the deductible in full coverage insurance.

What can you afford?

As with most financial decisions, what you can afford may limit your insurance options. Extra coverage means higher monthly premiums. However, it is important that you keep in mind that less coverage and lower premiums put you at a higher risk while on the road. By sacrificing coverage for affordability, you may find yourself without coverage you needed after an accident occurs. You should weigh the benefits carefully and choose the best coverage that you can afford. This will protect you and your vehicle to the best of your financial capabilities.