Compare Your Coverage – Do You Have the Right Auto Insurance?
Feb 24 2022
Many factors make up an auto insurance policy and – depending on your situation – the best policy may not necessarily be the cheapest policy. Here’s how to get the best policy for the best rate.
- Get the Best Coverage at the Best Price
- Give Your Dream Car the Best Insurance Coverage
- Need a New Car? Learn How to Budget for a Car Loan
- The Best Way to Insure a Teen Driver & Save Money (Related Story)
How to Get the Best Car Insurance Policy
Even if you go through the same insurance company and agent as a friend, it doesn’t mean you’ll get the same price. Your insurance rate depends on several factors, including what kind of car you drive and what coverage limits you need. That makes up your bundle of coverages, which helps protect you, whether you or someone else causes an accident. Because, let’s be real – life happens.
When shopping for auto insurance, consider these 8 types of coverage:
This coverage does not have a deductible and pays for accidental bodily injury and property damages you cause to others. Injury damages include medical expenses, pain and suffering, and lost wages. Property damage includes damages to property and automobiles. This coverage also pays defense and court costs.
Drivers often ask, “How much liability coverage do I need?” Each state has a required minimum amount, but we recommend limits of at least $500,000 to protect your assets and future wealth.
2. Personal Injury Protection (PIP)
PIP coverage pays medical expenses for the insured driver (regardless of fault) for treatment due to an auto accident. Many states require the coverage and have enacted laws permitting auto accident victims to collect directly from their own insurance companies for medical and hospital expenses, regardless of who was at fault in the accident. In some cases, you can sue the person at fault to pay additional expenses.
3. Uninsured Motorist Coverage
Uninsured motorist coverage pays your medical expenses and economic losses (such as lost benefits and wages) when an auto accident is caused by a driver without liability insurance.
4. Underinsured Motorist Coverage
This coverage pays your medical expenses and economic losses (such as lost benefits and wages) when an auto accident is caused by someone who doesn’t have enough liability insurance.
5. Collision Coverage
This coverage pays for damages to your vehicle (minus your deductible) caused by a collision with another vehicle or object.
6. Comprehensive Coverage
Also informally referred to as “comp,” this coverage pays for loss or damage to any vehicle insured on your policy (minus your deductible) that does not occur in an auto accident. This might include loss caused by fire, wind, hail, flood, vandalism or theft.
7. Rental Reimbursement
This coverage pays for a rental car if your vehicle is being repaired following an auto accident. There is usually a daily allowance for a rental car. (If you don’t want to be stuck with a tiny lemon of a vehicle, we recommend getting at least $40 to $60 a day.)
8. Umbrella Policy
Umbrella policies give you an extra layer of protection – and peace of mind – especially when liability options available for an auto policy are not be high enough. Think about the assets you own (home, cars, toys, retirement) and assets you might have as your career grows. A bad accident could take it all away.
(Learn more about umbrella policies and how they protect you here.)
To make sure you have the coverage you need, find an insurance agent you trust, and have an honest discussion about your driving habits and lifestyle. The more questions they ask you, the better advice you’re going to get. Minimum requirements are not necessarily the best option. Extra coverage may well be worth the expense – and that extra coverage is usually very affordable.
Do You Have the Right Coverage? Could You Save Money?
Get an Auto Insurance Checkup
When you work with Bell Insurance, you can relax knowing that when the worst-case scenario happens, we’ll take care of you. As experienced agents, we’ll help you protect what matters with coverage options in your best interest, competitive pricing, stress-free claims, and the high-quality service you expect from Bell.
To find out if you have the right coverage – or if you could save money on the coverage you have – get a free, no-obligation insurance checkup from a company you can trust.
Give Your Dream Car the Best Insurance Coverage
If you’re finally ready to buy your dream car, you know this won’t be an ordinary purchase. It’s not a basic vehicle, so don’t settle for basic auto coverage. Doesn’t your dream car deserve the best?
If your car is a classic, collector, rare or high-performance vehicle, ask your agent about using a specialty company that has unique coverages not found on a standard auto policy.
Aside from basic coverages like liability, collision and comprehensive, you may want to consider the following optional special coverages:
- Stated value or agreed value coverage will help insure your vehicle at a specific amount instead of actual cash value, like most vehicles.
- New car replacement coverage provides the difference between the purchase price of a new vehicle and the actual cash value of your vehicle, if it is declared a total loss. A new vehicle must be of the same or similar make, series and model as the vehicle it replaces. (This coverage is not usually available for leased vehicles.)
- Loan or lease gap coverage pays the outstanding balance between the vehicle’s lease or loan amount and the current actual cash value.
Note: If your lease automatically includes this coverage and you are allowed to remove it from the loan or lease, we can provide the coverage for significantly less cost.
- Special physical damage coverage pays to replace damaged parts on your vehicle with new original equipment manufactured parts, if available.
- A waiver of collision deductible protects you from paying a deductible to repair your car if you are less than 50% at fault. This coverage usually kicks in when the at-fault driver has low limits, no insurance or cannot be found.
- Full glass coverage replaces your broken windshield without a deductible. In some states, all insurance companies are required to offer this coverage. In others, this coverage is provided at the discretion of each insurance company.
- Accident forgiveness allows one at-fault accident on a policy, before your rates are affected.
Once you have the car you’ve always wanted, protect it with the coverage it deserves.
Are you looking to insure a new or teenage driver? Find out the auto insurance coverages inexperienced drivers absolutely should have, as well as how to save money when insuring a young driver, here.
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