When insuring your vehicle, there are different factors and types of insurance coverages to consider. It's a lot to digest, but it's important to consider all of them before purchasing a policy.
Most cars you see on the road are covered under a personal policy. In fact, many states require a personal insurance policy in order to register a vehicle. This can vary depending on the state, but nearly all 50 states require drivers to carry a property liability damage policy. They are also the best way to help protect your vehicle should something happen to it whether in a car accident or otherwise.
There are different types of policies and coverages you can buy depending on what makes sense for your situation. If you are driving an older vehicle with 150k miles on it, you might only carry your state’s required liability insurance, but if you have a vintage car that you put time and money into restoring, you will likely protect it with more coverage. This can also be true depending on who the primary driver is. If you have a teen driver, your coverage may be different than if you were the only person driving.
The Components of Personal Auto Insurance
There are many components of personal auto insurance that may give you the right type of coverage depending on your personal needs. Here are the various types of coverage:
Liability: Liability insurance is usually required if your state mandates that you have auto insurance. The type of liability insurance and the minimum amount you are required to carry can vary depending on the state you live in. If you are found to be at fault in an accident, liability insurance can help cover damage to another person’s property as a result of that accident. There are two types of liability insurance.
- Bodily injury liability: This helps cover another person’s medical bills if they are injured in a car accident that you are liable for. This can include any emergency care that they require, or even any necessary follow-up appointments or other medical costs up to your policy limit.
- Property damage liability: This helps cover damages to another person's property if it is damaged in a car accident that you are liable for. This can include damages to not just their vehicle, but also personal property that was damaged up to your policy limit.
Liability insurance generally covers damages and medical costs for the other party, not for you or your vehicle if you are found at fault.
For example: Your teenager drove around a curve too fast and hit your neighbor’s parked car and also caused damage to their fence. Liability insurance can help cover the cost of repair for your neighbor’s car and their fence, but not your teenager’s car.
Comprehensive: Comprehensive coverage can help protect your vehicle from some types of damage not caused by a collision. This can include vandalism, fires, thefts, or some natural events. If you have comprehensive coverage on your policy, your insurance company can help pay for these damages.
For example: A hurricane comes through your town and your car gets flooded causing $4,000 in damages. You have an $800 deductible; your insurance company pays up to $3,200.
Collision: Collision coverage helps cover damage caused to your vehicle if you hit another object whether that was another car, a tree, or traffic pole. Since liability coverage does not cover your vehicle in any accidents you are liable for, collision coverage will help make up that difference. Collision coverage helps you avoid paying out of pocket for the full cost of these damages.
For example: You did not notice a light turned red and began braking too late causing you to rear end the car in front of you. Their car can be covered by your liability insurance, but your car will not. Your vehicle sustains $3,500 in damages. Fortunately, you have collision coverage, and your deductible is $1,000, so your insurance company pays $2,500 in damages.
Personal Auto Insurance without a Driver's License
At Seguros Avanza we offer car insurance whether you have a United States license or not! Depending on the state you live in, you might be required to have a Mexican Matricula Consular, Passport, or other valid ID. However, not having a US license will not disqualify you from coverage. To find out what documentation you will need to start your Seguros Avanza insurance policy, reach out to one of our insurance agents for a free quote on our website!
SR-22
The SR-22 form is a specialized form that is generally mandated by a state or a court order. This type of coverage is issued as a result of driving without car insurance or under the influence of illegal drugs or controlled substances and acts as state proof that you are carrying the minimum amount of insurance your state requires. Most drivers do not need to carry SR-22 insurance, but if you need it, we can help!
FAQ's
Question: Is car insurance mandatory in the United States?
Answer: This depends on the state you live in. Most states require liability insurance, but if you are unsure what your state requires, you can find out by visiting your state’s Department of Motor Vehicles website.
Question: What happens if I'm uninsured and I get in an accident?
Answer: There are a variety of consequences you could face in this situation: if you are at fault, you could be required to pay out of pocket for damages to both vehicles, you could face legal repercussions such as a lawsuit, and you could be required to carry a SR-22 special verification of insurance coverage on your auto policy for several years which could raise your premiums.
Question: What does auto insurance cover?
Answer: This is entirely dependent on your insurance policy and what your personal needs are. A few of the types of insurance coverage are discussed above. Our knowledge center has more information on these and other types of policies.
Question: What vehicles can be covered under a personal auto policy?
Answer: Personal policies can cover a variety of vehicle types as long as the car is only being used for personal purposes. If you are using your vehicle for your business to haul equipment or travel between job sites, you would need to carry commercial auto insurance. Click here to learn more about commercial auto insurance.
Question: How much does car insurance cost?
Answer: There are a variety of things that can affect the cost of your insurance policy: your driving record, the number of drivers and cars you are insuring, any additional coverage you are carrying, the age and types of cars you own, and even the deductibles you choose. Reach out to an insurance agent today at 800-718-5127 to get a free quote.
Question: What drivers are covered under my policy?
Answer: You can cover as many drivers and vehicles as your policy allows, but each driver and vehicle will likely be an additional premium added on to your policy.
To find out more about Personal Auto Insurance and to get a free quote, call a Seguros Avanza agent at 800-718-5127.
Disclaimer:
Seguros Avanza is the brand name for Infinity Insurance Agency, Inc. This material is for general informational purposes only. The content is provided on an "as is," and "as available" basis without representation or warranty of any kind whatsoever. All statements are subject to the terms, exclusions and conditions of the applicable policy.