Things To Know About Auto Insurance Policies
Auto insurance policies can seem complex, but understanding a few key points can help you make informed decisions and save money. Craig & Preston Insurance Agency provides auto insurance in Concord, NC, Charlotte, Gastonia, Fort Mill, Matthews, NC and surrounding areas.
These are the main things you should know:
- Types of Coverage
Liability Coverage: This is often mandatory and covers damage to other people’s property and injuries in accidents you’re responsible for. It includes bodily injury liability and property damage liability.
Collision Coverage: Covers repair costs for your own vehicle if you collide with another car or object. It’s optional but useful for newer cars.
Comprehensive Coverage: Pays for damage to your car caused by incidents other than collisions, like theft, weather, or animal damage.
Uninsured/Underinsured Motorist Coverage: Protects you if you’re in an accident with a driver who has little or no insurance.
Personal Injury Protection (PIP): Covers medical expenses for you and passengers, regardless of who’s at fault. Some states require it, while others don’t.
- Deductibles and Premiums
Your deductible is the amount you pay out-of-pocket before your insurance kicks in. Higher deductibles can lower your premium (the amount you pay for the policy), while lower deductibles increase it. Striking a balance between deductible and premium is important for affordability.
- Discounts and Savings
Many insurers offer discounts for safe driving, bundling policies (like auto and home insurance), good grades (for students), low mileage, and vehicle safety features. Ask your provider about discounts to reduce costs.
- Policy Limits
Each type of coverage has limits, which is the maximum amount your insurer will pay in the event of a claim. Ensure your limits are high enough to protect you financially in case of a major accident.
- State Requirements
Each state has its own minimum insurance requirements, so make sure your policy complies with these. However, minimum coverage may not be enough to cover all costs in a serious accident, so consider additional coverage.
Understanding these elements can help you choose the right auto insurance policy that fits your needs and budget, while also providing adequate protection on the road. Should you have any questions, feel free to give us a call.
