What is auto insurance?
Auto insurance protects you from financial losses in the event of an accident. In this type of contractual agreement, you agree to pay the premium, and the insurance company agrees to pay your defined losses in the policy.
Auto insurance covers liability, assets, and medical coverage:
- Property insurance compensates for damage to or robbery of your car.
- Liability insurance covers your legal liability for property damage or bodily injury.
- Medical insurance covers your rehabilitation, injury treatment, and sometimes funeral expenses or lost wages.
Why do you need auto insurance?
It's actually all about protecting yourself financially. Here are some of the reasons why you need auto insurance:
- If you have an accident or your car is stolen, it will cost you money, to fix the loss.
- If you or any passenger is injured in an accident, the treatment cost can be extremely high.
- If you or your car are liable for injuries or damages to others, you can be sued for more than you're worth.
Therefore, getting insured is not just a wise financial decision, but many states require you to have at least some coverage.
Questions You Must Ask Your Agent
Your independent agency will advise you on finding auto insurance that suits your needs. Here are some things to keep in mind when preparing for the discussion:
- How much can an insurance company afford to pay in the event of an accident? ( to keep premiums low, you may want a higher deduction and be willing to pay more for repairs)
- What are the company's service level and ability to pay claims?
- What are the available discounts?
- What is the process of settling and filing a claim?
Don’t forget to ask about discounts!
There are various discounts out there. Here are some you can ask about:
- Anti-theft devices
- Multiple policies with the same company
- College students living away from home
- Defensive driving courses
- Low annual mileage
- Long-time customer
- More than one car
- No accidents in three years
- No moving violations in three years
- Student drivers with good grades
Get A Quote from Insurance Mentor
Not sure which auto insurance is right for you? Insurance Mentor has the firsthand knowledge and experience you need. Contact us today to talk to an insurance mentor to help you find the right coverages that fit your needs.
As everyone's needs vary, it's best to contact Insurance Mentor to assist with your needs and find the right insurance policy tailored to your needs.