Auto Insurance Coverage: Understanding the Basics

The first step in becoming an informed driver is understanding your auto insurance

Driving without understanding the type of insurance coverage you have can be a dangerous decision. Familiarizing yourself with the details of your auto insurance coverage can help you make smarter driving decisions. Here are three easy steps for getting to know your coverage better:

Step One: Know About the Different Types of Coverage

Taking a look at your auto insurance policy may seem overwhelming, but once you understand the common types of insurance coverage things become clearer than ever before. At the very least, your policy should include basic liability coverage and property damage coverage. Other features and types of added coverage include:

  • Coverage of uninsured drivers. Your policy may protect you from other drivers who take to the road without insurance, or even uninsured drivers who get behind the wheel of your car.
  • Medical bill repayment and personal injury protection. Medical bills can add up quickly after an accident. If you are found responsible for an accident you could even find yourself owing the medical debts of other drivers and passengers involved. Having this covered by your policy can help you save money and avoid unnecessary hassles.
  • Roadside assistance. There’s nothing scarier than being stranded without a strategy, and having a roadside assistance package from your insurance provider can help ensure that you never get stuck on the side of the road.
  • Collision and comprehensive coverage. An accident on the road seems like the time where a top-notch insurance policy is the most vital, but if you have comprehensive coverage you will find yourself protected even in the event of theft or damage to your car incurred outside of a collision.

Step Two: Take a Look at Your Policy

Many drivers assume that they have full coverage without knowing about the features of their actual policy. Full coverage can mean different things depending on your insurance provider, so the best way to understand your policy is to read it. There is no better way to be informed about the types of protection you have on your side. There are many types of coverage, so make note of any terms that you find confusing.

Step Three: Ask Your Agent

If you still have questions about your coverage give your insurance agent a call. There’s no one who will understand your policy better than your agent, so go straight to the source with all of your questions and concerns. Your agent can walk you through the difficult parts of understanding your coverage, leading to a safer driving experience.

There’s no better way to drive than with your mind at ease. Start taking a close look at your auto insurance policy today.

The materials available in the Knowledge Center are for informational purposes only and not for the purpose of providing legal advice. You should contact legal counsel to obtain advice with respect to any particular issue or problem. Use of this website or any of the links contained within the website do not create representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.