How much do you know about your auto insurance policy? Do you have collision coverage or comprehensive coverage? Are you covered if a car hits you while you're walking on the street? Is your plan consistent with your state laws regarding auto accidents?
The number of ways you might get involved in an auto-related accident is limitless. Fortunately, auto insurance companies have thought of most of these situations and designed plans to protect you in case you end up in one of them. It's important to understand the different coverages and options available with auto insurance, so that you can be sure you have the best policy for your needs.
If you are involved in an accident and are held responsibile, you have a legal liability to compensate for the other driver's bodily injury and property damage, including their medical bills, loss of income, and damage to their car or house. Liability insurance is the part of your auto plan that takes care of those legal liabilities. Make sure you know exactly what kinds of bodily injury and property damage your liability insurance will cover. You don't want to be charged with years of someone else's medical bills and then realize that your insurance plan can't help you out.
Collision coverage covers the damage done to your own car in an accident, regardless of whose fault it was. Should your car be damaged in a collision, all you pay is your deductible, and your insurance company will take care of the rest.
Comprehensive coverage is your safest bet for a great policy, with coverage over natural disasters, animal collisions, theft, and falling objects. You can't change the fact that at any moment, anything might happen, but with comprehensive coverage, you'll have a safety net in any situation.
Different states have different auto insurance laws. In a no-fault sate, your own insurance covers you for loss or injury, regardless of who caused the collision. In a fault state, the insurance company of the person who caused the accident pays, and both parties have the unrestricted right to sue.
What if the other person in a collision isn't properly insured? In some states, the percentage of motorists who are underinsured can be as high as 25%. Make sure you have uninsured underinsured motorist coverage to cover collisions with other drivers who lack proper coverage. You'll be covered for medical costs, lost wages, and pain and suffering, and you won't have to worry about your premiums going up.
There are a variety of optional coverages you can choose in addition to your primary coverage, to account for different kinds of emergencies. For example, if you're covered for Emergency Roadside Assistance, you can get help with a quick phone call 24/7 in case your car breaks down.
There are also coverages available specifically for windshield glass repair, car rental reimbursement, and extended customized equipment such as expensive sound systems. With these optional coverages, your insurance company should be billed directly for the cost of services included in the coverage.
Thinking about getting a new auto insurance policy or checking up on your current one? Get a free Arizona auto insurance quote or consultation from Arizona Insurance Agency today.