Auto Insurance 101: A Beginner’s Guide

No one plans to get into an auto accident, but they do happen from time to time and it’s important to be prepared. Having auto insurance protects you from financial ruin in the event you owe a lot for damages to your car or someone else’s. If you’re looking to get your first auto insurance policy, there are a few things you should know.

Your Options for Coverage

A nice benefit to auto insurance policies is that you can include and exclude coverage options based upon your personal preferences and coverage needs. Here are a few coverage options to consider:

  • Personal Injury or Personal Liability: This coverage is for medical expenses in the event of an accident, and it is particularly important if you don’t have health insurance.
  • Uninsured Driver: Research shows that, if you’re in an accident, there is a one in seven chance the other driver lacks auto insurance. This coverage, essentially, protects you in the event of someone else’s policy negligence.
  • Major Accident: This coverage applies to cases of having to replace your whole vehicle. It could be due to an accident, or to a natural disaster such as a flood.

Your Options for Insurers

Not all auto insurance companies are created equal. You may notice that smaller companies tend to offer lower rates compared to their larger competitors, but a bit of research might show that they are also much more difficult to work with in the event you need to file a claim. It’s always smart to choose an insurer with a good reputation, a strong rating with the Better Business Bureau and a company history of longer than a decade.

Having ample and reliable auto insurance coverage will give you peace of mind, as well as protecting your financial health in the event of an accident. Always make sure you do your research on coverage options and insurers to find the best policy for you.