Even if you’re a safe and experienced driver, accidents happen from time to time and it’s important to be prepared. Having an auto insurance policy protects you from an unexpected blow to your finances in the event you owe a lot for damages to your car or someone else’s. If you’re in the market for your first auto insurance policy, there are a few things you should know.
Coverage Options
One benefit to auto insurance policies is that you can include and exclude coverage options based upon your personal preferences and coverage needs. Here are a few coverage options to consider:
- Major Accident: This coverage applies to cases of having to replace your whole vehicle. It could be due to an accident, or to a natural disaster such as a flood.
- Personal Injury or Personal Liability: This coverage is for medical expenses in the event of an accident, and it is particularly important if you don’t have health insurance.
- Uninsured Driver: Research shows that, if you’re in an accident, there is a one in seven chance the other driver lacks auto insurance. This coverage, essentially, protects you in the event of someone else’s policy negligence.
Insurer Options
In the auto insurance industry, not all companies are created equal. Smaller companies often advertise lower rates compared to their larger competitors, but a bit of research might show that they are also much more difficult to work with in the event you need to file a claim. It’s always smart to choose an insurer with a good reputation, a strong rating with the Better Business Bureau and a long company history.
Maintaining ample and reliable auto insurance coverage will give you peace of mind, as well as protecting your financial health in the event of an accident. Always make sure you do your research on coverage options and insurers to find the best policy for you.
Image via Flickr/Brian Farmer
