Auto Insurance Coverage-What are you buying? How much do you need?


Auto insurance is required almost in every state.  If you or another covered driver are in an accident , insurance could pay for the injuries and damages to vehicles. Depending on the coverage purchased, auto insurance will also protect your investment if your vehicle is stolen, vandalized or damaged by fire.

When a person purchases and insurance policy, that person is called the "insured" he or she is responsible for the premium or payment to the insurance company. A deductible is an out of pocket expense that the insured agrees to pay before the insurance pays for the remainder of the balance.  When selecting a deductible the rule of thumb is the higher the deductible the lower the premium.  Keep in mind that the deductible selected is an amount you will be able to come up with at any given time.

Liability coverage pays for the damage caused to others if you are found at fault in an accident, covering the medical expense and damage to other vehicles involved.

Bodily Injury pays for injuries to other people when the insureds vehicle driver is at fault.

Property Damage is paid out when the insureds vehicle does damage to someone's property.  If you were to hit a fence or mailbox....

Collision pays out to your vehicle when in a covered accident regardless of who is at fault.

Comprehensive will cover your vehicle if it was stolen, vandalized, flood or caught on fire.

For a more in depth look at these coverage's please refer to the original article or call us directly.