Auto insurance is a critical part of your financial plan to protect your automobiles as well as your assets, especially if you are a homeowner. It provides financial protection against accidents, theft, and other unforeseen events. As a consumer, understanding the basics of auto insurance can help you make informed decisions that go beyond selecting the lowest price. Let’s explore four types of auto insurance coverages:

1. Liability – Liability limits are an important component of your auto policy. It covers bodily injury and property damage in the event of an accident. Having low liability limits can create out of pocket expenses that have a significant impact on financial health.
2. Collision coverage – This part of the policy pays for damage to your own vehicle. It typically covers damage to your car sustained from accidents with other vehicles, collisions with objects and single-car accidents (for example, if you hit an object while driving).
3. Comprehensive Coverage – This covers non-collision incidents like theft, vandalism, hitting an animal or natural disasters.
4. Uninsured/Underinsured Motorist Coverage – This is another important component of the policy. This protects you if the other driver lacks insurance or has insufficient coverage.

Factors Affecting Premiums

There are several factors that may influence your auto insurance premiums, for example your driving record, the type of vehicle, and your home location.  

Shopping for Auto Insurance

Working with an independent agent, such as Anywhere Insurance, offers access to multiple quotes from different insurers. Your agent will also work to maximize discounts available such as home and auto bundle discounts, good student discounts, good driver discounts, and many more. When purchasing auto insurance, you are purchasing protection for you, your family and your assets which makes working with a knowledgeable agent an important part of the process.

Click here for an appointment to start your process of getting a quote today!

This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. The material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. Not for reproduction.