5 auto insurance FAQs that you must read
Knabusch Insurance can help you with auto insurance in and around Monroe, MI, Dundee, MI, Temperance, MI, Newport, MI, Ida, MI.
Here are five frequently asked questions (FAQs) about auto insurance:
What is auto insurance and why do I need it?
Auto insurance is a contract between you and an insurance company that provides financial protection in case of accidents, damage, or theft involving your vehicle. It’s required by law in most places to have at least a minimum level of coverage. Auto insurance helps cover the costs of repairing or replacing your vehicle and can also provide liability coverage if you’re at fault in an accident and someone else is injured or their property is damaged.
What types of coverage are available in auto insurance?
Auto insurance typically offers several types of coverage, including:
- Liability Coverage: This covers bodily injury and property damage if you’re at fault in an accident.
- Collision Coverage: This pays for damage to your vehicle in case of a collision with another vehicle or object.
- Comprehensive Coverage: This covers non-collision-related damage to your vehicle, such as theft, vandalism, or natural disasters.
- Uninsured/Underinsured Motorist Coverage: This protects you if you’re in an accident with a driver who doesn’t have insurance or doesn’t have enough coverage.
- Medical Payments Coverage/Personal Injury Protection (PIP): This covers medical expenses for you and your passengers after an accident, regardless of who’s at fault.
How are auto insurance premiums calculated?
Auto insurance premiums are determined by various factors, including:
- Driving History: Your driving record and history of accidents or traffic violations.
- Type of Coverage and Limits: The types of coverage you choose and the coverage limits you select.
- Vehicle Type: The make, model, year, and safety features of your vehicle.
- Location: The area where you live and park your car.
- Age and Gender: Younger drivers often have higher premiums, and gender can sometimes play a role.
- Credit History: In some places, credit history can influence premiums.
- Usage: How often and for what purposes you use your vehicle.
What is a deductible?
A deductible is the amount of money you agree to pay out of pocket before your insurance coverage kicks in to cover the rest of the expenses. For example, if you have a $500 deductible and your repair bill is $1,500, you would pay $500, and the insurance company would cover the remaining $1,000. Choosing a higher deductible can lower your premium, but it means you’ll have to pay more in case of a claim.
Can I add someone else to my auto insurance policy?
Yes, you can often add family members or household members to your auto insurance policy. It’s important to accurately list all drivers who will be using the insured vehicle, as insurance companies consider the driving history of all listed drivers when determining premiums. Adding additional drivers may affect your premium, especially if they have a less favorable driving record.
Remember that specific insurance policies and regulations can vary based on your location and the insurance provider, so it’s always a good idea to consult with an insurance professional for personalized advice. Please call us without any hesitation.