• October 9, 2017
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Car Insurance 101: 3 Things You Should Know About Auto Insurance

Auto insurance is difficult to fully understand because no two policies are the same. Everything from what is covered to how much coverage is required varies depending on the state you live in, what type of vehicle insurance policy you purchased, and even certain factors, such as your gender, age, car you drive, and where you live.

In an effort to help you better understand how things work, here are three basic things every driver should know about car insurance.

Car Insurance is Just a General Term Specific Coverage Depends on the Type of Insurance

Auto insurance is a basic term that defines coverage that will protect you against potential financial loss that occurs after an accident. Just because you have vehicle insurance it doesn’t mean everything from injuries to car repairs is covered.

The coverage that you receive depends upon what type of policy you purchased from your insurance company. Some of the different types of auto insurance coverage you can purchase include collision, comprehensive, uninsured, personal injury protection and medical payments, bodily injury, uninsured motorist coverage, and liability.

Deductibles Determine How Much You Pay

Before your auto insurance company will help pay for anything, whether it is repairs or damages, you will have to first pay a deductible. The amount of your deductible will vary depending upon your coverage. Typically, the higher you pay in monthly rates for vehicle insurance, the lower your deductible will be, but that isn’t always the case.

Where You Live Could Influence Your Auto Insurance Rates

Insurance providers can use where you live to offer you higher or lower rates on car insurance. If you live in a high-crime area or a city that is known for its extreme traffic, your rates will be higher than someone who lives in a quiet suburb with few car break-ins and less traffic.

Don’t let the confusion surrounding vehicle insurance leave you underinsured or paying for insurance you won’t use. Contact Absolute Value Insurance to receive a quote for vehicle insurance or to work with an insurance agent to make sure you have proper coverage.