Since federal law requires all motorists to carry car insurance, it’s important to have a basic understanding of why you need it and what coverage meets your unique requirements. Read the following Q&A to get started.
What is car insurance?
Car insurance is what vehicle owners buy to over costs resulting from injury or property damage caused by a collision, vandalism, theft, fire or extreme weather such as flooding and hail. Some of the car insurance coverage options available include liability, collision, comprehensive, personal injury and uninsured/underinsured motorist.
How much does car insurance cost?
The national average for car insurance in 2020 was $1,500. Factors affecting how much car insurance costs include what type of car you drive and how old it is; the state you live in; whether you reside in the city or country; your age, credit history and driving record.
How does car insurance work?
Car insurance works by helping pay to replace or repair your vehicle after a collision or vandalism. It also covers damages and injuries to others. Liability car insurance covers medical bills if you or your passengers are injured in an accident or you’re hit by an uninsured/underinsured driver.
How much car insurance do I need?
How much car insurance you need depends on where you live, how much your vehicle is worth, how many miles you drive and if, in the event of an accident, you can afford to pay for damages yourself. Collision and liability car insurance coverage is the minimum protection recommended.
What does liability car insurance cover?
Liability car insurance helps cover the expenses the other driver incurs, including property damage, medical injuries and loss of income, from a car accident you caused. Damages are paid up to the covered limit of your policy.
What is not covered by car insurance?
Cosmetic or mechanical repairs for damage and/or deterioration that result from normal, everyday use of your vehicle are not covered by your car insurance policy. Also, anyone driving your car who is not named on your insurance policy is not covered by your car insurance policy.
Does my car insurance cover rental cars?
Comprehensive and liability car insurance coverage typically extends to a rental car if it is of similar value to your personal car and driven in the U.S. Some car insurance policies also cover the cost of renting a car while yours is being repaired after an accident.
Does insurance cover stolen cars?
If you have comprehensive coverage, your insurance should cover stolen cars. If your vehicle’s stolen or damaged during a break-in, you should receive up to the actual cash value of your vehicle, minus the deductible. Liability and collision insurance does not cover stolen cars. Stolen contents (laptop, phone) aren’t covered.
How to switch car insurance?
Before you switch your car insurance, review your personal insurance policy, compare competitor offers and check for cancellation penalties. Then, inform your current provider and get a copy of cancellation for your records. Or better yet, let one of the car insurance advisors at JAISIN shop the market for you.
Even if it weren’t against the law, driving uninsured is risky. One accident can leave you without transportation, or worse – someone might be injured. Without the protection of car insurance, you could be out of pocket thousands of dollars. Just imagine what it would cost if you personally had to replace your vehicle and/or cover someone else’s medical bills.
If you think you can’t afford car insurance, think again. Then, talk with an insurance advisor, like the ones at JAISIN, who specialize in car insurance. Their first priority is to make sure your coverage matches your needs. And every year going forward, they review your coverage to see if your circumstances have changed, shop your car insurance coverage with several underwriters, search for additional money-saving discounts and negotiate on your behalf to secure the best terms.