5 things to know about auto insurance
Auto insurance is an essential aspect of vehicle ownership, providing financial protection in case of accidents and unforeseen events. Craig & Preston Insurance Agency provides auto insurance in Concord, NC, Matthews, NC, Fort Mill, SC, Gastonia, Charlotte and surrounding regions.
Here are five important things to know about auto insurance:
1. Coverage Types: Auto insurance typically consists of several coverage types. The most common ones include:
a. Liability coverage: Pays for bodily injury and property damage to others if you’re at fault in an accident.
b. Collision coverage: Covers repair or replacement costs for your vehicle after an accident, regardless of fault.
c. Comprehensive coverage: Protects against non-collision incidents like theft, vandalism, natural disasters, and more.
d. Personal injury protection (PIP) or medical payments: Covers medical expenses for you and your passengers in an accident.
2. Premiums and Deductibles: Your auto insurance premium is the amount you pay regularly to maintain coverage. It’s influenced by factors like your driving history, location, age, type of vehicle, and coverage choices. The deductible is the amount you agree to pay out of pocket before the insurance company covers the remaining costs. Higher deductibles typically result in lower premiums, but you’ll pay more upfront in case of a claim.
3. State Requirements: Each state in the United States has its own minimum auto insurance requirements. These are the minimum coverages you must have to legally drive in that state. Understanding your state’s specific requirements is crucial to ensure you comply with the law and have sufficient coverage.
4. Exclusions and Limitations: It’s essential to carefully read and understand the policy’s exclusions and limitations. Some common exclusions include intentional damage, using your vehicle for commercial purposes, or driving while under the influence. Be aware of any restrictions that may affect your coverage when certain circumstances apply.
5. Discounts and Bundling: Many insurance companies offer various discounts that can help you save on your premiums. Some common discounts include safe driver discounts, multi-car discounts, good student discounts, and discounts for bundling multiple insurance policies (e.g., auto and home insurance) with the same provider.
Before purchasing auto insurance, it’s crucial to shop around and compare quotes from different providers to find the best coverage that meets your needs and budget. Don’t hesitate to ask questions and seek clarification on anything you don’t understand in the policy. Please call us without any hesitation.
