Auto Insurance Basics


So you want to know more about auto insurance. This article is for the newbie. I will unpack for you the basics of car insurance, and highlight the main points of the subject. After that, you will have enough knowledge to move on, taking each point as a strand of knowledge, and investigating them separately to have a comprehensive understanding of Auto Insurance Basics.

So what are the basics of car insurance?

1. Auto Insurance Companies

First thing you need to find out: what auto insurance company will youwork with? Different insurance companies charge different rates for coverage. Ensure you pursue those that offer what you are looking for. And if you cannot afford them, choose one that suits your financial situation. Good auto insurance companies in the country include Liberty Mutual, USAA, State Arm, Progressive, Allstate, AAA, Geico, Hartford, and Esurance. When choosing an insurance company, give higher priority to those that have the following qualities:

  • Friendly customer service.
  • A good reputation.
  • Good financial standing.
  • A long history.
  • Satisfied customers.

2. Coverage Plans/Policies

If you have never taken out an auto insurance policy, and want to know what the options are, they include comprehensive coverage, liability insurance, collision coverage, personal injury protection, and uninsured/underinsured motorist protection. Liability insurance covers motoring accidents when you are at fault. Collision coverage covers damages to your vehicle in the event of an accident. Comprehensive coverage covers situations that do not involve car accidents, such as car theft, vandalism, weather-related damage, among others. Personal injury protection covers your medical bills in the event of an accident. Uninsured/underinsured motorist protection covers your damages when someone else is at fault for the accident but is unable to pay because they are either uninsured or underinsured.

3. Five things you didn’t know about auto insurance

I will list five things you may not know about car insurance:

• You can cover your pet’s medical bills too.

• The policy will still apply when you lend your car to a friend.

• The policy does not cover your personal possessions.

• It’s less costly to pay a lump sum once or twice a year than smaller amounts monthly.

4. What won’t your auto insurance policy cover?

There are things your policy won’t cover, and sometimes you will go through life not knowing these things. Until the dark day comes, when your insurer will point at the policy details, and you will realize your lack of knowledge may have cost you. These things which your policy won’t cover include:

• Personal belongings in your car.

• Your car loan in case your automobile gets totaled.

• Cars that do not belong to you.

• Members of your household not listed in your policy.

Final Words

Auto insurance is an extensive knowledge mine. After learning these Auto Insurance basics, you have the tools you need to carry out a more exhaustive study of auto insurance. I hope this article was useful to you.