4insure

Understanding auto insurance is far from easy. There is an endless supply of confusing terms, plenty of incorrect information, and the confusing contracts don’t make things any easier.

Why  Do I  Need Auto Insurance?
All states require some for of auto insurance, however, the amount and types of coverage required vary state by state. Check with you state’s government website to determine how much coverage you need.

In addition to state requirements, it is vitally important that you have auto insurance to protect yourself, your loved ones, and your finances from unforeseeable misfortune. Without auto coverage, you may find yourself owing a great deal of money, or unable to pay for necessary medical fees.

What Types of Coverage are Available to Me?
This is possibly the most confusing part of auto insurance. Some people are totally unaware that there are different forms of coverage, leaving many unprotected. Others just neglect other forms of coverage outside of the two common coverage types (liability and collision).

Liability - Liability coverage protects you in situations where you are responsible for damages or injury. When involved in an accident, liability coverage will help pay for damages and medical bills of the other party or parties involved.

Collision - Collision coverage protects you from paying the fully for damage done to your vehicle. Your are only responsible for costs within your deductible. Terms vary from company to company, so do your research before agreeing to anything.

Comprehensive - This type of coverage protects you from other forms of damage. This most commonly includes: theft, water damage, vandalism, and animals. Again, terms vary by company, so double check.

Medical Coverage - Medical coverage is pretty self-explanatory. This coverage will help pay for medical expenses as a result of an auto incident.

How Much Coverage Do I Need?
Unfortunately there is no easy way to determine this. You must take a in-depth look at your current situation, including; cars, family member, and financial stability, just to name a few. When choosing a deductible, the higher you deductible, the lower you premium, in most cases. This is why it is commonly advised that you choose the highest deductible that you will be able to pay at any given time.

Deductibles and Premiums; What Do They All Mean?
In layman’s terms, a deductible is what the insured party must pay before the insurance company comes in to carry the additional costs. A premium is essentially what you a required to pay each month.