Many people don’t know what they’re getting into when they sign up for auto insurance coverage. A lot of details go into creating an effective auto insurance policy, and many customers are clueless about the importance of these details. Whether you just bought your first car or you’re looking to upgrade your existing policy, learning more about auto insurance will help you make smarter decisions about your coverage in the future. If you need help learning about auto insurance policies, this guide will tell you everything you need to know.
Know the difference between Comprehensive & Collision Coverage
When it comes to auto insurance, there are two main types of coverage: comprehensive and collision. Both are important, but they cover different things. Comprehensive covers damage that is not the result of a car accident (such as fire or theft), while collision covers accidents when you collide with another object or person. If you want to know more about what each type of coverage offers, keep reading!
*Comprehensive* protects your vehicle against any incidents not caused by an accident such as vandalism, hail storms, etc. A lot of people forget about this type of coverage because it doesn’t seem like something that will happen often; however, we have seen many cases where cars have been vandalized and ended up costing hundreds if not thousands in repairs.
*Collision* protects your vehicle against accidents involving other objects or people. It also pays for damages to someone else’s vehicle if you were at fault in an accident- these are known as No-Fault states.
Understand Bodily Injury Liability
Bodily injury liability is one of the most important types of coverage in an auto insurance policy. This coverage protects you financially if you are responsible for an accident that injures another person. The limit on this type of coverage will dictate how much your car insurance company will pay out in damages after a crash.
For example, a $100,000 bodily injury liability limit means your insurer will pay up to $100,000 per person injured in an accident for medical expenses and lost wages, or funeral expenses if they die as a result of their injuries.
You can speak to an agency that offers Auto Insurance Los Angeles to find a plan that suits your budget.
What is the policy deductible?
Your auto insurance policy deductible is the amount of money you have to pay out-of-pocket before your insurance company starts covering expenses. The policy deductible is typically $500, but it can vary depending on your insurer and your state. If you have a high deductible, you’ll likely pay less in premiums each month. But if you need to file a claim, you’ll have to pay more out-of-pocket. So it’s important to balance your premium payments with your potential costs if you need to make a claim. Here’s what you need to know about your auto insurance policy deductible.
Learn About Property Damage Liability Coverage
Most people are familiar with liability coverage, which is designed to protect you in the event that you damage someone else’s property. But what about property damage liability coverage? This type of coverage can help protect you financially if you damage someone else’s property in an accident. Here’s what you need to know about property damage liability coverage.
Why You Should Have Umbrella Insurance Coverage
Umbrella insurance is a type of insurance that can provide additional coverage in the event that you are sued for damages. If you have significant assets, umbrella insurance can help protect your financial well-being in the event that you are held liable for an accident.
Additionally, umbrella insurance can help cover expenses related to your legal defense, such as attorney’s fees and court costs. Umbrella insurance is not required by law, but it is a good idea to consider this coverage if you want to protect your assets.
When purchasing California Auto Insurance it’s best to find an auto insurance policy that fits your needs.