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Introduction

When you’re in the market for car insurance, you want to make sure that you’re getting a policy that covers all of your bases. The following seven points will help you understand exactly what you need to know when it comes to auto insurance:

Collision coverage helps pay for your car’s repairs if it was damaged in an accident.

If you get in an accident and your car is damaged, collision coverage helps pay for the repair or replacement. This type of coverage differs from comprehensive because it only covers damage caused by an accident, whereas comprehensive covers theft and natural disasters.

However, collision coverage won’t work if you’re not at fault for the accident. In order to collect on your policy after a crash that wasn’t your fault—and thus likely saved you hefty repair costs—you’ll need to purchase additional liability insurance.

Your insurer will set limits on how much they’ll pay out per incident (the most common is $50,000) and each year (the most common is $100,000). The more expensive your car is to replace or fix—or if multiple accidents have occurred recently—the higher these limits should be set.

Collision insurance costs about 1% of what you paid for your car; for example: If a new Toyota Camry costs $30k without extras but with collision/comprehensive included…then 30/1 = 300/1000 = 0.3% so 0.3*30k = 990 – 1023 depending on which company’s quote we use as our benchmark here!

Comprehensive coverage helps pay for damages to your car that were caused by something other than a collision.

Comprehensive coverage helps pay for damages to your car that were caused by something other than a collision. For example, if you get into an accident with a deer, a fire starts in the engine compartment of your car, or someone smashes your window and steals something out of it—all of those things are covered by comprehensive insurance.

Comprehensive coverage also covers theft-related losses like vandalism and break-ins while parked; floods; hail damage; falling objects like trees or rocks hitting the vehicle; damage from animals such as deer, birds and squirrels; earthquakes or other earth movement such as landslides or sinkholes swallowing up sections of roadways; falling objects like trees or rocks hitting the vehicle (if they fall on the roof).

You share responsibility with your insurance company in the event of an accident.

You share responsibility with your insurance company in the event of an accident.

Your insurance company will work with you to determine if both parties were at fault and who should be responsible for paying any damage costs. If you’re found to be at least partially at fault, then you will have to pay some expenses out of pocket.

If another party is determined to have been more than 50% responsible for causing the accident and its subsequent damages, their own insurance company will cover their repairs and bills up to a certain amount (this amount differs from state-to-state). Any excess costs are covered by yours.

Most states require you to have auto insurance before you drive on the roadways.

All states require you to have auto insurance before you drive on the roadways. If you do not have it, your state will penalize you by increasing your rates or even suspending your license.

If you live in a state that requires a minimum amount of coverage and don’t meet that requirement, this could result in fines as high as $1,000 per month! Additionally, if a driver doesn’t have enough coverage and causes an accident that injures another person or damages property, they can be held financially responsible for any damages caused by their negligence.

If you don’t have auto insurance when required by law and then fail to renew your registration with proof of coverage in place within six months after its expiration date (or within 15 days if past due), most states will suspend your driver’s license until proof of coverage is provided again.

Your auto insurance policy may be made up of several different types of coverage.

Your insurance policy may be made up of several different types of coverage. The most common are liability, comprehensive and collision. Liability pays damages to others if you cause an accident. Comprehensive covers things like vandalism or theft while the car is parked (but not in motion). Collision covers damage caused when driving your car, but doesn’t cover everything — it depends on what type of car you have and how much coverage you purchased. For example, if you hit another car while traveling 35 mph or less in a vehicle with automatic transmission and airbags then the other driver will probably be at fault for causing the collision so he/she would most likely carry only liability coverage which won’t cover any damage done to his/her own vehicle!

You can also get additional types of insurance such as medical payments which helps pay for medical expenses if someone else injures themselves while inside your vehicle; personal injury protection (PIP) which helps pay for medical expenses regardless whether they were injured inside or outside your vehicle; uninsured motorist coverage which pays out when someone else has no auto insurance at all; underinsured motorist coverage which pays out when someone else has too little auto insurance (usually $25k/$50k/$100k); rental reimbursement assistance if your car needs repairs beyond its limits so that it must be sent into a shop instead

If you fail to meet your state’s minimum coverage requirements, you could be penalized (and receive fines).

In most states, you must carry enough auto insurance to meet your state’s minimum requirements. If you don’t have enough coverage, or if you don’t maintain the right kind of car insurance at all times (for example, if you go without liability coverage for more than six months), and are in an accident where someone is injured or killed as a result of your negligence and inability to pay for damages, then your driver’s license may be suspended. In addition to losing the ability to drive legally, failing to maintain proper auto insurance could also result in fines—the amount varying from state to state.

Your premium is determined by how much of a risk you are as a driver.

The most important thing to know about auto insurance premiums is that they’re based on risk. Your driving record, your age, and even your gender can affect how much your premium costs.

Here’s a brief breakdown of how these factors influence the cost of auto insurance:

  • Your driving record. If you’ve had any tickets or accidents on it in the last five years, those will show up on your report, which will increase your risk level and thus affect what you pay for insurance coverage.
  • Your age. Once you hit 25 or so (the minimum age for most insurers), premiums tend to drop because younger drivers are considered more risky than older ones; however, if you’re over 40 or 50 and haven’t had any major incidents lately (and have never been convicted of DUI), then premiums may actually go down as well!
  • Gender. Men tend have higher rates than women because men are more likely than women to get into accidents while driving—but again, this depends on other factors such as whether or not the man has ever been convicted of DUI in his past history with the DMV

There are many important things to know about auto insurance

While there are many things to know about car insurance, here are the top 7:

  • There is no such thing as a “standard” insurance policy. Even though each state requires drivers to carry some basic minimum liability coverage, there are hundreds of policies available that can provide additional protection and benefits at different prices.
  • Your premium is calculated using a number of factors, including your driving record, age and gender (younger drivers pay more), where you live (insurers charge higher rates in areas with high accident rates), type of vehicle(s) you own or lease (a sports car will cost more than an economy car), the amount of coverage you select for each vehicle type – comprehensive vs collision vs liability — and any discounts applied by your insurer based on their underwriting decisions about which risks they want to assume or not assume.

Conclusion

There are many different types of coverage available, so it can be difficult to decide what’s right for your needs. The best thing to do is talk to an insurance agent who can help you choose the best option for your situation. They also know all about the laws in each state which will help them make sure you get everything covered at a price that fits well within your budget as well!

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