Car insurance provides a safeguard for your financial well-being in case of accidents, theft or other unplanned incidents. Having an auto insurance policy can help cover the cost of vehicle repairs, medical expenses and damages or injuries you cause to another driver. It does not cover the cost of maintaining your vehicle or fixing regular wear and tear.
What Is Auto Insurance?
Auto insurance is an agreement or contract between you and your insurance carrier. In exchange for an insurance premium, your insurance provider will give you a certain amount of money to assist in recovery costs following accidents such as collisions or theft. You will generally have to pay a deductible for your policy, which is a designated out-of-pocket cost you’ll pay until your insurance kicks in.
What Does Auto Insurance Cover?
Auto insurance policies vary from car owner to car owner. Factors such as car model, value and age can play a significant role in determining the type of policy you’ll need. However, a typical auto insurance policy might include the following coverages:
- Liability insurance helps insure you against claims arising from damage or injuries you cause to others if you are at fault in a wreck.
- Bodily injury liability coverage helps cover their medical bills (and, in some cases, deaths).
- Property damage liability helps pay for damage to the other driver’s property, such as their car.
- Collision insurance helps cover damage to your vehicle after a wreck.
- Comprehensive insurance helps pay for damage from non-accident mishaps, such as weather damage.
- Medical payments (MedPay) coverage helps pay for your medical bills and those of your passengers if you’re injured in an accident, regardless of who is at fault.
Uninsured/underinsured insurance helps insure you against damage caused by someone else who doesn’t have appropriate liability coverage.
It’s important to note that your policy may not just be limited to these coverages. Contact RCU Insurance Services to learn more.
Do I Need Auto Insurance?
According to the California Department of Motor Vehicles, insurance is required for all vehicles operated or parked on California roads. You must also carry proof of insurance in your vehicle at all times. If you do not have insurance for your car, the registration will likely be suspended, and you will not be able to operate your vehicle on the road.
Is Auto Insurance Expensive?
Auto insurance costs depend on the car and the history of the driver, and these are sometimes out of the driver’s control. But there are some strategies that may help keep your costs low, such as the following:
- Maintain a clean driving record. When determining auto insurance policies, insurance carriers tend to place a high value on driving records and history. Exercising safe driving practices such as driving defensively and maintaining a safe speed can help ensure a clean driving record.
- Select the right deductible. Having a higher deductible will reduce your premium costs since you’ll pay more out of pocket if you file a claim. If you have a clean driving record, haven’t been at fault for any accidents and can afford to pay a higher deductible, a high-deductible plan may be your best option.
- Maintain a good credit history. Most insurance companies will look at your credit when determining your premium. You should develop a habit of routinely checking your credit report for any faults or errors and paying bills on time.
- Bundle your policies. Most insurance companies will offer you the option to bundle multiple policies to save money. For example, many companies offer substantial discounts if you bundle your home and auto policy.
For additional information about auto insurance works near Santa Rosa, California, contact RCU Insurance Services at 707-576-5115.
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This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.