Car Insurance Explained

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Buying a car is a major investment – one you want to protect! Most lenders requires borrowers to have car insurance, and most states have laws requiring drivers to have insurance. A car is always at risk. Accidents happen. When they do, insurance helps you protect your asset against mishaps ranging from dings and dents to a chipped or cracked windshield to small-scale fender benders or even larger accidents. Once you start shelling out cash for repairs, they sometimes cost more than the car is worth!

When you start your search for insurance, you’ll see that there are tons of options out there, so it helps to know the basics. For starters, insurance is not an investment, it’s a transfer of financial risk. By taking out an insurance policy, you are actually paying your insurance provider to assume your financial risk in the event of significant loss.

Determining how much coverage you need is an important step in the process. You will have to do some research to help decide the amount of coverage that best suits your unique needs, depending on your driving behaviors and the level of protection you feel is necessary for your vehicle.

So what are the different types of auto insurance coverage?

Collision Coverage

This pays for damage to your vehicle resulting from an accident. Possible scenarios where collision coverage comes into play include if you rear-end someone, run into a mailbox, or hit a tree. Your car is covered if you accidentally hit another car or object, or if another car accidentally runs into you. Lenders will typically require at least this type of coverage until your car has been paid off.

Comprehensive Coverage

This pays for damage to your car that is caused by events outside of an accident. This includes hail damage, vandalism, theft, or the other things you don’t expect to happen, but still do.

Personal Injury Protection

This covers medical expenses and lost wages for you as well as any other passengers that are injured in the event of an accident, regardless of who is at fault. It helps cover expenses like ambulance bills, emergency room charges, follow-up visits, and even prescription costs.

Uninsured/Underinsured Motorist Coverage

Uninsured motorist coverage protects you if you are involved in an accident with another driver if they are at fault and don’t have insurance. Similarly, underinsured motorist coverage protects you if you’re in an accident with an at-fault driver who doesn’t have enough insurance to cover the damage. This coverage can also be used for medical expenses and lost wages.

Liability Insurance

This covers the damage done to another person’s vehicle or property if you are found at fault for an accident. It can also cover their medical expenses in the case of injury.

Guaranteed Asset Protection (GAP) Insurance

This provides extra insurance in case your car is totaled in an accident, and you owe more money on your car loan than what the vehicle is currently worth.

When you’re requesting and comparing quotes from different insurance providers, make sure you’re comparing apples to apples. A less expensive insurance plan may also be less comprehensive and have limits on its coverage, so be sure to closely review the details. And don’t forget to ask if there are any discounts you qualify for!

If you’re searching for car insurance options, don’t forget to check out the auto insurance provided through Robins Insurance Services. Request a quote online or call 478-923-3773 x. 1103 to speak with an agent. If you have more questions about car insurance, stop by a branch, or give us a call.

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