If you have never purchased your own auto insurance policy before and do not understand how auto insurance works, you might be confused when you speak to an agent about the type of coverage you need. To help with this confusion, it is important to understand the following three options you will have when buying your policy.
The types of coverages you want
With auto insurance, there are many different types of coverages, and the types you need and want will depend on several things. First of all, if you have a loan on the car or are leasing it, you will need to find out what requirements your lender has. Typically, lenders require full-coverage insurance when there are existing loans.
If you do not have a loan, you can choose less coverage if desired. The benefit of full coverage is that it protects you no matter what, even if you are labeled at-fault for a collision. Liability coverage is the type you need to protect against damages you may cause to other cars, and comprehensive insurance covers you from non-driving perils, such as hail damage and theft. These are some of the options you will have to choose from, and the costs will depend on what types you choose.
The coverage amounts
Within each type of coverage you choose, you will also be able to choose the coverage amounts. Most insurance agents will tell you the recommended amount of coverage, and this is typically enough for the average person, but you could adjust these amounts if you feel you need more or less coverage.
The deductibles on the policy
The other option you will have with your auto insurance policy is the ability to choose your deductible amounts. You will only need to choose amounts for comprehensive and full-coverage insurance, and you are free to choose almost any amount you wish. A lower deductible amount will result in a higher premium for your policy, but it will also result in paying less money if you wreck your car and need repairs. A higher amount will help you save money on your policy costs but will result in spending more after a collision occurs.
There may be other options to choose from, as well, and you can ask questions to the agent if you have any. To get a quote or learn more about your options in auto insurance coverage, call an insurance agent today. Companies like Webers Insurance Service Inc can help.