3 Things You Must Know About Auto Insurance

Insurance Blog

Buying auto insurance is a very important part of your safety. You should never drive without auto insurance, but what many people do not understand is that there are lots of different things you can get in your auto insurance. Just because you have auto insurance doesn't necessarily mean that you are fully covered. Here are some things you should be looking for in your insurance.

1. Liability Coverage

Lawsuits happen all the time in auto accidents. This is why it is very important that you make sure that you have plenty of liability coverage. The reason for this is simple. If you were in a car accident, and you caused it, the other party would file a claim against your insurance company for all of their repairs and costs. If the accident was severe, or if the other party sustained lots of medical injuries, they may sue you for additional money. If you have good liability coverage, this will help to pay for the lawsuit and what you are found responsible for. However, what many people don't realize is that this coverage has different caps. If your insurance caps at a certain amount, and the lawsuit is more than that, you could be held personally responsible for the rest of the money. This is why checking for good liability coverage is essential.

2. A Reasonable Deductible

Second, you need to be fully aware of how much you will have to pay out of pocket if you get in an accident. This amount is called the deductible. A deductible can range from a couple hundred dollars to thousands of dollars. You might be thinking you are getting such a great deal on your auto insurance without realizing that the reason your rates are so good is that you are paying a large amount out of pocket if you need to access your policy. Make sure before you purchase any auto insurance that you can handle the deductible.

3. Full-Coverage, Comprehensive Coverage, and Collision Coverage

Lastly, you need to be aware of the coverage you are getting. Some insurance providers will offer you something called "full coverage"; this makes people think that they have more coverage than they do. You need to determine what kinds of coverage you have in an accident or in the case that your car is vandalized or stolen. Full coverage may not mean what you think it does.

By learning these things and calling a variety of companies such as Horgan Insurance Agency, you can determine what auto-insurance coverage is right for you. 

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27 January 2017