Choosing More Coverage

Posted on: 22 September 2022

Auto insurance helps pays bills related to auto accidents. It is required by law in most states for all drivers. If you would like to know more about auto insurance, keep reading.

What Type Of Auto Insurance Do You Need?

In most states, you are legally required to have liability insurance, which covers the cost of medical bills and property damage to the other driver if you cause an accident. It does not cover your medical bills or property damage.

Collision insurance is not usually required by law, but it will pay for the damages to your car (if another driver was also involved). Comprehensive insurance offers more protection and covers your car in single-vehicle collisions and non-collision-related damage like vandalism and wild animals. If you are renting the vehicle or still repaying the loan, the lender may require you to have collision and/or comprehensive coverage.

If you want your auto insurance to cover your medical bills related to accidents, you'll need medical payments coverage and/or personal injury protection coverage. Of course, if you have medical insurance through your work or another source, you can use that instead of your auto insurance.

There are more niche forms of insurance you may also want to consider. These include:

• Gap insurance
• Classic car insurance
• Underinsured motorist insurance
• Towing/labor insurance

How Much Does Auto Insurance Cost?

The exact cost of your auto insurance depends on the following factors:

• The car
• The insurance carrier
• The policy
• Your overall risk

Naturally, the more expensive the car, the higher the premiums. In addition, different insurance carriers charge different prices, so you'll need to comparison shop to find the best rates. The more robust the policy, the more expensive. Liability insurance is typically inexpensive, but some people may struggle to afford comprehensive insurance.

Most of the cost, however, depends on you and your overall level of risk. First, the insurance carrier will consider your driving history, including any accidents, tickets, and related arrests (DUI, aggressive driving). In addition, many auto insurance companies charge you differently based on your age and gender.

What If You Get Caught Without Auto Insurance?

If you get into an accident without auto insurance, you could have to pay for everything out of pocket. Depending on the severity of the accident, that could easily financially break you or impact your life. If the state requires you to have insurance, you may also face additional consequences.

Even if you don't cause an accident, you may get a ticket for driving without insurance and/or have your license suspended. Typically, after a period, the suspension is lifted, but you may be required to get SR22 insurance to prove you have auto insurance each month.

Auto insurance is incredibly important and helpful. It can prevent you from losing lots of money, and it better protects your vehicle. If you would like to know more, contact an auto insurance company in your area today.