understanding your insurance policy

understanding your insurance policy

Shopping For Auto Insurance? 3 Questions To Ask

by Tuĝba Van Den Heijkant

Insurance is important for many reasons. While necessary and required by most states, auto insurance also ensures you have the financial means to handle injuries and property damage, if involved in an accident. Because it is an investment, purchasing the right auto insurance policy is imperative. With this guide, you will learn a few questions to ask when shopping for a new insurance policy.

What Coverage Does My State Require?

The more coverage you have, the more protection you have. Unfortunately, the more coverage you have, the higher your premiums will be. Because of this, many drivers choose policies with only the minimum coverage required by their state.

In most cases, your state will require bodily injury and property damage liability. For example, California requires $15,000 bodily injury/death liability per person and $5,000 property damage liability per accident. North Carolina requires $30,000 bodily injury liability per person and $25,000 property damage liability per accident, in addition to a few other requirements.

If you are unsure about your state's specific requirements, talk to an agent licensed in your state.

How Can I Get Discounts?

Again, many people choose policies with only the minimum limits to save money. However, there are other ways to reduce your premium costs, if you want additional coverage.

Bundling is a great option offered by many insurance companies. Consider bundling your auto, homeowner's/renter's, health, and life insurance together with one company, to receive discounts on your policy premiums.

Ask the insurance company if they offer discounts for good driving records or if you enroll in and complete a safe-driving class. While not necessarily large discounts, the savings can be helpful.

What Additional Benefits Does the Policy Offer?

A good auto insurance policy will protect you financially, if you are involved in an accident. The policy should cover damages made to your vehicle, in addition to damages made to other vehicles and property. The policy should also offer coverage that pays for injuries, but you may want an insurance policy that offers a few extras, as well.

For example, consider a policy with roadside assistance and towing as added benefits. Many insurance companies include these benefits for all their customers or will add them, for a small fee. Weigh out the pros and cons of paying the extra fee to have this added protection.

Purchasing auto insurance may not be a fun expense, but it is an important one. This guide will help you shop for the right policy for you. Contact a company like Nelson Insurance Agency, for more information.


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understanding your insurance policy

You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.