The Complicated World of Insurance Made SimpleThe Complicated World of Insurance Made Simple


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The Complicated World of Insurance Made Simple

When I bought my first home, I had a real estate agent lead me through the entire home-buying process. This made it simple and easy for me. However, when it came time to choose a homeowners insurance policy, I became very confused about what made up a good policy. I started by doing a lot of online research into what homeowners insurance features were needed in my area and then finally called an agent who led me step-by-step through choosing the policy that was best for me and my home. I learned a lot during my research and time spent talking to my agent. I have also learned a lot about other types of insurance over the years, so I thought I would start a helpful blog all about insurance. I enjoy helping others, so come back often for new tips!

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Making Insurance Decisions: What Auto Coverage Do You Really Need?

Car insurance is not easy to decipher. When you see all these new terms, you might feel like you suddenly have no idea what you've signed up for. Still, it is necessary to have auto insurance if you drive or own a vehicle, so you don't want to be left in the dark.

Are you looking for more information about auto insurance? Do you want to know if you really need a high premium to include all these coverage types? Here's what you need to know.

Liability Coverage

Liability coverage is the first type of coverage you need to understand. In most states, liability coverage is required, and it protects you if somebody wants to sue you after an auto accident. This covers the other party's bodily injuries (often labeled BI) and property damage (written as PD).

So, do you need liability coverage? Everybody is advised to have liability coverage. In fact, you could get a citation from an officer if you lack liability coverage because it is required in many states. Failure to secure this coverage also means you could be personally sued by another driver.

Collision Coverage

Some drivers should consider collision coverage, which covers damage to your own vehicle and injury to the people in your vehicle. Collision coverage steps in whether you are in an accident with another vehicle or with an object.

You should consider collision coverage even though it may not be required. Your deductible will be lowered, but you will pay more on your premium each month. If your vehicle is worth more than you could feasibly spend now to replace it, you should consider coverage.

Comprehensive Coverage

Comprehensive coverage is associated with accidents not linked to collisions. For example, if your car is the victim of vandalism or a fallen tree limb, comprehensive coverage will step in and provide assistance.

Not every drive will purchase comprehensive coverage, but that does not mean they should not consider it. Again, you should consider comprehensive coverage if you would not be able to easily replace your car right now.

Talk to an Auto Insurance Professional

There is nothing wrong with knowing little about how your auto insurance policy works, but it is certainly to your advantage to learn more about how auto insurance policies work. The coverage you choose has a lot to do with the kind of success you are going to have after an accident.

Contact an auto insurance agent to learn more and to get an auto insurance quote