What Is Car Insurance?

Car insurance is an agreement between you and an insurance company. The insurance provider agrees to cover you wither fully or partially from many scenarios involving damage or loss of your car. Coverage can also include things like medical expenses and roadside assistance.

Why Do I Need Car Insurance?

In most states, it’s illegal to drive without having car insurance. Every state has a legally required minimum of liability coverage. There are potential fines if you are caught without the necessary coverages.

Insurance coverage also protects you from the immediate financial loss should you be involved in a car accident.

What Does Car Insurance Cover?

Car insurance covers you, your passengers, your car, cars involved in accidents with your car and their passengers, as well as pedestrians and property around you. Coverage depends on the plan you choose and limits you set to your plan.

There are three main auto insurance coverage types—liability, collision and comprehensive. There are also a extra riders available.

• Liability: This is the legal minimum of coverage. It covers your medical expenses to a limit. If you’re at fault for an accident, it also covers the other driver’s medical expenses and car repairs. It does not cover repairs to your car.

• Collision: This covers repairs to your car in case of a collision with another vehicle or inanimate object, like a mailbox.

• Comprehensive: This covers everything else collision coverage does not, including: anything that can happen to your car: fire, wild animal collisions, vandalism, natural disasters ect.

Other optional coverages include:

• Uninsured/Underinsured motorist: This covers medical or repair expenses that are more expensive than what the other person’s insurance covers. (For example, if they’re driving uninsured—illegally—or if they carry only the cheapest coverage.) 

• Medical payments: This covers medical bills that go over what your liability insurance covers.

• Rental car: This covers rental car costs while your car is unavailable.

• Road service/Roadside assistance: This covers emergency towing of your car, battery jump starts and other roadside needs.

What Types of Car Insurance Coverage Do I Really Need?

It depends on your car’s value and how much you need your car. If you drive something that would be cheaper to replace than repair, you probably only need liability.

If you depends on your car for daily life or it has a high value it would be more imperative to have greater coverages as well as rental car coverage so your life isn’t interrupted if your car is out of commission.

How Much Does Car Insurance Cost?

Auto insurance costs are based mostly on the coverage you choose, the value of your car and your driving history. Your rates will drop as you get older, especially after turning 25. Having a bad driving record or DUIs will naturally increase your premiums.

An average driver with a good record will likely pay about $900 a year for full coverage for one car. If they choose liability coverage only, costs could be as low as $600.

Who Is Included in My Car Insurance Policy?

Anyone driving your car is technically covered, including friends and family borrowing it.

Family members who live at your address and share your car should be explicitly covered by your policy. If they have a bad driving record, it can drive up your costs.

How Can I Get Car Insurance Discounts?

• Multi-policy: Discount for bundling multiple types of insurance with one provider, e.g., homeowners and car insurance

• Multi-car: Discount for insuring multiple cars with one provider

• Safety: Discount for your car’s safety features

• Accident-free: Discount if you’ve gone an exceptionally long time without an accident

• Loyalty: Discount if you’ve been at your insurance company for a long time

• Age: Discount if you’re over a certain age, usually 55

Protecting yourself, your passengers and your car doesn’t mean breaking the bank. You can get a range of quotes and options us.

When you work with an independent agent like Amba Insurance, you’ll never have to wonder if you should have looked at more policies from different companies. You will have the opportunity to compare several options from top companies and find the best policy and value for your needs, all while letting your agent do the legwork.