Car insurance is one of the most important aspects of owning a vehicle. It covers you in case of an accident and covers damage to your car if it's stolen or vandalized, not to mention the comprehensive coverage that protects you against weather damage, flooding, and more.
However, many people don't know what they're covered for when they buy auto insurance, which can result in underpaying and then finding out you need additional coverage – all while paying more than you should have!
At Direct Point Insurance, we are here to help. We guide you and help you find the cheapest and most reliable insurance provider. Get in touch with us today, and you won't regret it getting our insurance quotes.
Here are a few things you should know about auto insurance before purchasing it.
What is Car Insurance
Car insurance is a form of coverage that protects you financially in an accident or other incident. If you get into a car wreck, your insurance company covers the cost of repairs and medical bills.
Sometimes, it will pay for lost wages and other injuries sustained in an accident. Coverage is mandatory in most states, so you can be pulled over and fined if you don't have it.
However, you must understand the different types of auto insurance coverage. Once you have picked the right one, you can purchase the coverage through private companies like Direct Point Insurance
Types of Auto Insurance Policies
There are different types of auto insurance you may need. However, not all companies may offer all types of auto insurance coverage. That is why you need Direct Point Insurance to help you with your auto insurance needs.
If you're going to be driving, it's important to know the specific situations in which you'll need each type of insurance and how much coverage you should have in these situations. Each type of insurance can uniquely protect you.
Suppose you happen to find yourself without one or more of these policies. In that case, there's no guarantee that your car insurance company will protect you from liability or damage costs if something unexpected happens on the road.
Here's a quick rundown of types of car insurance:
Medical Payments Coverage
Medical Payments Coverage pays medical bills that result from an accident. Having this type of coverage is always a good idea because it can help you avoid expensive medical bills if you get into an accident.
This type of insurance will not cover damages to your car, but it can be combined with Personal Injury Protection and Collision Coverage for those things in some states.
In addition, this cover is not available in all states. But if you have the cover and get into an accident in another state, the medical payments coverage will pay your bills.
Uninsured and Underinsured Motorist Coverage
Suppose the other driver who hit you in the accident was uninsured or had very little insurance coverage. You need uninsured and underinsured motorist coverage.
This type of situation is when you need uninsured and underinsured motorist coverage. Uninsured and underinsured motorist coverage protects if the other person's insurance company does not cover your injuries.
Another reason you can use this type of coverage is a hit-and-run or when the at-fault driver does not have enough insurance to cover damages or injuries caused during an accident. The uninsured and underinsured portion covers those costs for both parties in a car accident.
When shopping for auto insurance, it's essential to understand the difference between liability and comprehensive coverage.
Comprehensive insurance pays for damages to your car from vandalism, theft, collision with an animal, or natural disasters. Liability insurance only pays if you cause an accident that injures someone else.
Comprehensive coverage is also a good idea because even if you don't cause an accident, your car could be damaged by something out of your control, like a fire or hail storm. If you are leasing or financing your vehicle, liability protection is usually included in your lease or loan contract. But if you own the car outright, then be sure to add comprehensive coverage to your policy.
Collision coverage pays for repairs when you have an accident with another car or object. Collision coverage usually comes with a deductible, which means the insurance company will pay for the damages up to your deductible amount.
Collision coverage does not cover lost wages, damage to other property, or injuries to you or someone else in the car. It also doesn't cover other people's vehicles if you are driving a borrowed car.
Bodily Injury Liability
This type covers an injury or death you caused to someone else. Bodily injury liability can be either a single person (one car accident) or multiple people (multiple car accidents).
The insurance company will pay the other party for their injuries. This type of insurance is significant because it protects you from lawsuits from other drivers if you are in an accident, and it doesn't matter who was at fault.
A few states will require bodily injury liability to protect other drivers, so check with Direct Point Insurance before signing up for this coverage.
Property Damage Liability
If you hit another car, fence, or any property and cause worth of damage, property damage liability coverage will pay for the repairs. Without it, you're responsible for paying for the damages.
If your car is worth more, you'll need to buy collision coverage to repair or replace it. Collision coverage will also cover any injuries caused by accidents.
Personal Injury Protection (PIP)
Personal Injury Protection (PIP) is required in many states on your auto insurance policy. PIP is a type of coverage that will pay for medical expenses and lost wages caused by an injury sustained in an accident.
It will also help with the cost of preparing for funerals in an accident resulting in deaths. However, this insurance coverage may not be available in some states.
Other Auto Insurances Policies
Rental Car Reimbursement Coverage
Rental car reimbursement coverage is one type of insurance that you may need to learn about. It is also called transportation expense coverage. If you are in an accident and the rented car is totaled, then you will be responsible for the cost of repairing.
Luckily, this insurance coverage will pay for repairs in case of a collision or comprehensive loss. Suppose you have an accident, then you can use this insurance to hire another car as you wait for repairs.
It is not a requirement by law to have this insurance coverage, but vital for your needs. Talk to us at Direct Point Insurance, and we can help you get coverage from a reliable auto insurance provider.
GAP coverage is one type of auto insurance that can help make up for the difference in what you owe on your car and what you can recover from your insurance company if it's totaled.
This type of coverage pays the difference between the market value and what you owe, but only if you have a loan on the vehicle. If you do not have a vehicle loan, this type of coverage is unnecessary.
Towing and Labor Coverage
Towing and Labor Coverage will reimburse you for expenses incurred due to roadside assistance or for getting your vehicle towed from the scene if you're in a car accident. It is optional coverage and not compulsory by the state.
Full Glass Coverage
Full glass coverage is one type of auto insurance you may not know you need. This will help cover the cost of your windshield, headlights, mirrors, and windows if they are damaged.
Some insurance companies offer this as an add-on, but it's worth looking into to see if you already have it. Full glass coverage is also a good idea for leased cars since they don't have insurance like this.
Personal Umbrella Insurance
A personal umbrella insurance policy can provide coverage for damages incurred in an accident that exceed the limits on a liability insurance policy. Personal umbrella policies are especially useful for those with significant assets or income.
Rental Car Insurance
You may think your personal car insurance covers you, but this is only sometimes the case. If you rent a car or borrow a friend's vehicle, it's important to have rental car insurance.
Your current policy won't cover it if there are any accidents or damages. This coverage is usually inexpensive and will help protect you from potential financial risks.
How to Save on Auto Insurance
Even if you are insured and have collision coverage, your rates may increase following the incident due to the increased risk you pose as a driver. The less time you spend in your car, the less chance something bad will happen.
However, we all need to drive from time to time, so it's important to ensure that you're prepared and know what steps you can take to save money on repairs. One way to do this is by taking advantage of manufacturer or dealer discounts when they arise.
You might also find a great offer at your local mechanic. Another way to save money on repairs, which might seem like common sense but is only sometimes practiced, is by maintaining the condition of your vehicle through regular maintenance.
Make sure to change the oil regularly and check the tire pressure every month or so. These simple tasks will help keep major issues at bay while you get annual savings on insurance costs in general.
The Benefits of Having Auto Insurance Coverage
Auto insurance protects you from losses due to damage to your vehicle or medical expenses related to injuries sustained by others that are your fault. So, you must shop around and find an auto insurance policy that fits your needs at an affordable price.
Here are reasons why you need auto insurance, so you can make sure that you’re well-protected on the road.
Assured for financial liability
Auto insurance is an important expense that protects you from financial liability. With auto insurance, however, you'll have peace of mind knowing that no matter what happens in an accident, you won't need to worry about money because your insurance will cover everything.
If you cannot pay the huge amount needed for damages after an accident, get auto insurance coverage.
Fulfill Legal Requirements
In some states, the law requires that all drivers have at least liability insurance. This is a good thing because it protects you and your family in an accident.
Liability insurance will also protect others if they are injured in an accident while driving your vehicle. Liability coverage will also cover damage to another driver's car if you cause an accident.
If you do not have liability insurance, then any other driver involved in a car wreck with you can sue for damages from your personal assets. Auto insurance will help cover all legal charges.
Assured for repairs and replacement
If you're in an accident or your car breaks down, auto insurance can help you pay for repairs and replacement.
Collision coverage will pay for damages if the other driver is at fault. Comprehensive coverage will pay for damages if the car is stolen or damaged by an object that falls on it, like rocks from a construction site or hail from a storm.
Uninsured/underinsured motorist coverage will pay if the at-fault party doesn't have insurance or doesn't have enough to cover your damages and injuries. So, you need auto insurance to help pay for repairs and replacement.
Assured for medical claims
A car accident can be a life-changing event, and the medical claims that come with it can be devastating without insurance. Even a small accident can cause injuries and make up for lost time from work or school, leading to expensive medical care.
If you have auto coverage, your vehicle insurance will cover the cost of medical bills.
No Claim Bonus
If you have ever been in an accident, then you know the importance of having auto insurance. Not only can it help you when the unexpected happens, but it can also save you money, time, and stress.
Luckily, if you have never claimed insurance coverage, then you are entitled to get a bonus. This comes in form of a discount since you didn’t make a claim in the previous period.
Protects the driver and passenger liability
One common misconception is that drivers don't need to carry auto insurance. This couldn't be further from the truth. Carrying liability insurance on your car protects you and your passengers from any harm that may come to them.
If a driver is found negligent in an accident and doesn't have the appropriate coverage, they could be liable for damages to third parties and other people's medical bills. Liability insurance will cover these expenses up to the limit of your policy.
Personal Accident Cover
Personal accident cover is essential for protecting yourself from any financial losses if you are injured or disabled in an accident. Without it, you could find yourself on the hook for a lifetime of medical bills, lost wages, and other expenses.
Third-Party Liabilities are a type of insurance that covers the costs you're liable for to someone else if you cause damage to your vehicle. This includes property damage and medical expenses.
The cost for this type of coverage varies based on what state you live in, how old your vehicle is, and where you drive it.
It's important to note that there are restrictions on who must have this type of coverage, so make sure to find out before purchasing a policy.
Some other benefits to having Third-Party Liabilities are that it can reduce your liability in case you're found at fault in an accident, and it can cover certain damages not done by your car.
Tips for Finding the Right Auto Insurance Policy for Your Car
Even if you’re young and haven’t had an auto insurance policy before, you might not know what to look for in an auto insurance policy. Or how to assess whether you have the right one.
If you aren’t sure where to start, here are Direct Point Insurance's tips for finding the right auto insurance policy.
Know Your Needs
The first step in getting the right car insurance is to know your needs. Do you have a teenager who drives? Are there any special provisions in your area? Do you use public transportation or carpool with others? What about if your vehicle is financed or leased – do you need to be covered under someone else's policy? The answers to these questions will help determine what type of coverage is best for you.
Some policies offer liability only, while others may offer comprehensive and collision coverage. Other types of coverage might apply to your needs, such as uninsured/underinsured motorists, medical payments, and personal injury protection (PIP).
Once you know your needs, consult Direct Point Insurance for help to get the best auto insurance coverage.
Do Your Research
The best way to find a good insurance policy is to research. There are many options out there, and every person has different needs. Make sure you know your needs and compare policies online to get an idea of what is available in your area.
Once you have narrowed it down, see if any local agents like Direct Point Insurancey can discuss some finer details with you in person. This will help ensure you understand all the ins and outs of the coverage and rates.
Remember: always read the fine print! You want to avoid signing up for something and later realize that you don't like the terms or limitations. And keep in mind - not all insurance providers offer deals or discounts. You may have to consult us to help you easily get one.
Get Quotes From Different Companies
If you want to find the perfect insurance coverage, it is important to get quotes from your agent as possible. Talk to your family members and friends, or simply get in touch with us.
The more options you have, the better your idea of what you'll be paying monthly or yearly. Ensure that your company offers good coverage and that they are fully licensed with your state's Department of Insurance. If they are not licensed, they may not provide protection in case of an accident or incident.
Compare Coverage and Prices
When choosing an auto insurance policy, there are three things to consider: coverage, price, and customer service.
Coverage is very important because it will help ensure that your vehicle is protected and adequately insured in case of an accident.
Price is another key factor when selecting a policy because you want to ensure that the premium is competitive with other insurers while providing adequate coverage. Finally, customer service should also be considered because if something goes wrong with your claim or you have any questions about your coverage, you must have someone to help you through the process.
Read the Fine Print
When looking to purchase a car, many people overlook the need for an auto insurance policy. But once they get behind the wheel, they realize how crucial it is.
The best way to find a policy that will suit your needs is to take some time before deciding and carefully reviewing your options.
Read all the information on auto insurance coverage to ensure you don’t miss anything.
Review Your Policy Regularly
It's important to review your average annual insurance policy regularly because it can change based on your needs and circumstances. The following questions can help you assess your needs and find the right coverage:
Where do I drive?
Do I have a teenage driver?
Do I have expensive valuables in my vehicle?
How often do I drive?
How many miles does my car travel in a year?
What is my deductible amount?
It's also important to compare rates between different companies. Although it takes time, getting quotes from at least three different providers can ensure that you're getting the best rate possible.
Surprising Factors That Impact Your Auto Insurance Rates
You’re careful on the road, never go above the speed limit, and you haven’t had an accident in over a year – but that doesn’t mean your auto insurance rates are low.
There are several factors outside of your driving record that can impact how much your auto insurance costs, so it pays to know about them when shopping around for affordable coverage.
The first surprising factor that impacts your auto insurance rates is your age. The older you are, the lower your rates will be. This is because young drivers are typically inexperienced and more likely to get into accidents or violations than older drivers.
Location is a huge factor in how much you'll pay for auto insurance. Generally, the closer you live to the center of a city, the more expensive your rates will be. If you're driving on an interstate highway, your rates will be higher than if you're on a residential street.
If you want to save money on your policy, consider shopping around for a company that doesn't charge as much for the location factor.
Your Driving History
The length of time you've been driving is a factor that impacts your auto insurance rates. You'll likely see a higher premium if you've had your license for less than three years.
If it's been more than five years since you last had an at-fault accident or moving violation, your rates will be lower. This is because insurance companies want to reward people who have been driving safely for a while with lower premiums.
In addition, having high-risk drivers as passengers in your car can affect the amount of insurance coverage you need and how much it costs. For example, if you often drive with one other teenager in the car on a limited budget, this would increase the cost.
Alternatively, adding someone to the policy who has no history of traffic violations might decrease the rate based on their good driving habits. You may also find lower rates by being insured through Direct Point Insurance
The Type of Vehicle You Drive
You may think that the type of car you drive would have the biggest impact on your auto insurance rates, but it has very little to do with them. In fact, the model you choose only accounts for about 10% of how much your car insurance will be.
The safety rating and size of the vehicle are two other factors that affect a car's insurance rates, but not as much as you might expect. What sets your rate apart is how often and where you use your car.
For example, if you're commuting to work every day in a city with heavy traffic, your rates will be higher than if you lived in a rural town and drove mainly on highways or back roads.
Your Credit Score
If you have excellent credit, getting a lower rate with better coverage will be easier. If you have poor credit, your rates may be higher, and your coverage may not be as good.
It's important to know that your credit score impacts the price of auto insurance, so if you want to get the best deal on your car insurance, it's a good idea to keep your score in mind.
Be proactive about monitoring your credit by checking for errors and disputes when they happen, paying off bills, and making sure there are no outstanding balances or delinquencies.
The safety devices in your car can also have an impact on your average annual insurance rate. These devices will likely lower your rate if you have a newer car with safety features like front-end and side airbags.
You may be surprised that your driving habits are a factor in your auto insurance rates. You don't have to drive recklessly to get a high rate, but there are ways you can improve your driving habits and save money. For example, if you follow the speed limit and use the brake pedal sparingly, you'll have better braking distances and will likely qualify for lower rates. You might also qualify for discounts if you take a defensive driver course or keep an accident-free record.
Consult Direct Point Insurance
Direct Point Insurance is an auto insurance agency with a great reputation for customer service and the best quotes life insurance rates. We work with all types of vehicles, from SUVs to trucks, and we can help you find the perfect policy.
Talk to one of our agents today so they can help you figure out which coverage is best for you and your knowledge about claims service. Plus, we're offering great discounts on getting a new policy, so now's the perfect time to shop around! Call us now! 877-766-7518.