What You Think You’re Getting with Your Auto Insurance Policy
A car crash on Jagtvej in Copenhagen, Denmark. (Photo credit: Wikipedia)
Auto Insurance can be a very confusing topic. There are so many different types and the prices can be extremely scary to look at. But don’t worry; we are going to break it down for you, so you know exactly what you are getting!
One of the first things you need to understand is the form of auto insurance you have. Here is a general break down of the types of insurance:
- Liability: This coverage pays for accidents, even if you cause them. It will also coverage medical bills and property damaged as a result of an accident. State law determines how much liability coverage you need to have (see below for Missouri’s information), but keep in mind you can always get more coverage than required.
- Collision: This coverage will pay for damage that is done to your vehicle that is caused by collision with another vehicle or object.
- Comprehensive: This insurance will cover any damage to your car that is unrelated to an accident. Examples include damage caused by weather, vandalism or even theft.
- Personal Injury Protection: This coverage will pay for the medical expenses of the driver of the vehicle in an accident. It doesn’t matter whose fault it is.
There are other types of insurance as well, such as uninsured motorist coverage, that will pays for your car’s damages when an accident is caused by a driver who doesn’t have liability insurance. Keep in mind that this is not a comprehensive list, but it is a good starting point for you to understand what your coverage means!
According to the Missouri Department of Revenue, the following insurance is required in the state:
“Liability insurance covers your legal liability when injuries or property damage happen as a result of your actions. The minimum level of coverage required by state law is:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $10,000 per accident for property
The law also requires you to have uninsured motorist coverage of $25,000 for bodily injury per person and $50,000 for bodily injury per accident.”
Now that you understand some of the basics of auto insurance, you may be wondering, “how can I save some money?” After all, auto insurance is expensive! By implementing a few of the following tips, you should be able to save some money:
- Ask about discounts: This tip may sound rather obvious, but have you ever tried it? You never know what sort if discount you could get if you buy coverage for two or more cars, just as an example.
- Park in a garage: This is going to lessen the chance that your vehicle will get hit or stolen.
- Shop around: Don’t be afraid to really take the time and look at options. You would be surprised at how much you could save.
- Keep your record clean: You are going to pay a lot more in premiums if you have a lot of violations.
- Buy your cars carefully: A small and safe car is probably going to cost you a lot less in insurance than a sport car!
So remember, be informed about the type of insurance you have. There are ways that you can cut down some of the costs, as well. Don’t be afraid to call the insurance company and just ask! You never know what you will uncover.
Stephanie Wilmsmeyer is a State Farm Agent in Columbia, Mo. Find her on Google+ for more information on auto insurance!
Category: Car Insurance
