Many drivers face challenges finding car insurance that aligns with their budget. There are multiple factors that impact car insurance premiums. If you have questions about your car insurance policy, expressing those concerns with your car insurance presentative is recommended. Here’s a look at key questions to ask while speaking with your car insurance representative.
Your car insurance representative may look over the state laws. In most states, drivers must purchase a minimum level of liability insurance. Liability insurance covers any costs associated with injuries, property damage, and death caused by an auto accident. Liability insurance also covers your legal fees if you are sued for the damages you have caused. However, your insurance representative may recommend extra coverage based on your individual needs.
Collision coverage takes care of any repairs if your vehicle is damaged in an accident. Comprehensive coverage protects you if your vehicle is stolen. Collision and comprehensive insurance policies also include deductibles. Your insurance rep should inform you that adding extra coverage may impact your premium. It’s recommended that you add full coverage to your car insurance policy if you have a lot of assets to protect.
Be aware that basic car insurance does not cover repairs or replacement parts if your vehicle suffers significant damage. Minimum liability coverage kicks in if your vehicle is responsible for causing damage or injuring someone. You’ll have to amend your policy to add comprehensive coverage to protect you if your vehicle is vandalized or damaged by an accidental fire. Your insurance rep may recommend adding extra coverage such as roadside assistance or uninsured motorist insurance to round out your policy.
Your car insurance costs are based on the coverages, policy limits, and deductibles that you choose. Insurers also assess your risk rating. Your risk rating is based on future projections that you’ll file a claim. Your insurance rep will weigh your age, driving record, gender, and insurance score to help calculate your premium. Generally, there are discounts available to help lower your premiums.
You may qualify for a discount by practicing safe driving habits or bundling your car and home insurance together. Many car insurance companies are now offering discounts to drivers who purchase electric cars. You can also qualify for a discount by agreeing to pay your entire premiums in full at the start of your policy. Qualifying for multiple discounts can help you save a lot of money on car insurance.
Car insurance is designed to protect drivers, pedestrians, and passengers who are injured in an accident. Bodily injury liability insurance is one of the most significant parts of your car insurance policy. This type of coverage handles any medical treatment costs, lost wages, and potential legal fees.
If you are a frequent driver, minimum liability coverage may not offer enough coverage. Your insurance rep may advise you to increase your liability limits. They may also inform you about different coverage options such as medical payments coverage, personal injury protection, total disability, and accidental death benefits. Adding extra coverage adds another layer of protection, as you’ll be financially responsible for any costs that exceed your policy limit.
Your car insurance representative will help guide you to make informed decisions regarding your coverage options. It’s recommended that you look over your policy carefully. If you have any questions regarding your policy, contact the team here at CF&P Insurance Brokers, and we will assist you.