Posted on: January 20th, 2014 by The Accel Group | No Comments

Whether you’re a newly minted driver or an experienced veteran behind the wheel, it’s important you know about all the types of auto insurance that will protect you and your vehicle. Information is power and will help you make wise choices about insurance policies.

According to a survey by the National Association of Insurance Commissioners, more than half of Americans don’t know the basic facts about auto insurance.

There are eight key auto insurance coverage terms you should know

  1. Auto liability coverage: If you’re involved in a car accident and you’re at fault, liability coverage will help pay if you injure someone (bodily injury) or damage someone’s property (property damage). Liability insurance does not cover any injuries you sustain or damage to your own property.
  2. Personal injury protection (PIP): No matter who is at fault in an auto accident, this coverage pays for medical and other expenses for anyone covered under the policy. Therefore, if you carry this type of coverage for yourself, your medical costs will be paid.
  3. Medical payments: This type of insurance will pay limited medical expenses for you and your passengers after an auto accident, no matter who caused the accident.
  4. Collision insurance: Collision insurance will provide protection to replace or repair your vehicle, regardless of who is at fault. The amount paid is subject to the deductible chosen by you. Sometimes if a car is older or not worth much money, owners choose to drop collision insurance.
  5. Comprehensive insurance: This insurance covers all non-auto accident damage. For example, if a tree limb falls on your car, comprehensive coverage will pay to repair your automobile, subject to your deductible.
  6. Uninsured and underinsured motorist coverage: If you’re involved in an auto accident with a person who either doesn’t have enough or any liability insurance, these types of coverage allow you to collect money for any damages you incur.
  7. Rental reimbursement: If your car is damaged in an accident, this insurance will pay for a rental car while your own car is repaired or replaced. Most insurers will ask you to rent from an approved provider.
  8. Emergency roadside service: Whether you require towing, have a flat tire, need emergency fuel delivery, or have locked yourself out of your car, roadside assistance services are available around the clock to help. In addition to AAA, insurance companies, auto manufacturers, and some credit card companies offer roadside assistance plans.

Now that you know the types of auto insurance available, you’ll be better able to select the right type of auto insurance. First, you’ll need to determine a deductible amount. A deductible is the amount of money you pay toward repairs before your insurance covers the rest.

The higher the deductible you select, the lower your premiums will be. However, you need to select a deductible you can reasonably afford should an accident occur. If you can only afford to pay $500 out of pocket, select that deductible amount. If paying a $1,000 or higher deductible wouldn’t cause a burden, choose that deductible and you’ll save money on your insurance premium amounts.

The next step is to find a reputable insurance company and an agent you can trust. Write down a list of questions and requirements for your auto insurance needs before you meet with an agent. The people at The Accel Group are knowledgeable, professional, and experienced. We’ll answer all your questions and make sure you receive the best possible auto insurance, a personalized policy that will protect you in all situations.