Choose the Right Personal Auto Coverage

Personal auto insurance is mandatory in almost every state. Car insurance provides financial protection in the event of an accident, so you must have it active and current. If you drive a car/auto/vehicle without being insured, you will not have any type of protection and you will have to pay out of pocket for all the expenses that derive from the accident.

Depending on the coverage chosen, personal auto insurance provides:

Property: refers to damage to the vehicle or theft thereof.

Liability: offers coverage to third parties for personal injury or property damage.

Medical: covers the cost of treatment for injuries, rehabilitation, and sometimes, lost wages in situations of inability to work or funeral expenses.

How much does a personal auto policy cost?

This coverage price is individual. It is known as à la carte pricing, which allows customers to choose the features to pay for, customizing the coverage amount that fits their budget and needs. The value also depends on your financial and driving records.

What information do you need to quote a personal auto policy?

1- The vehicle registration number or VIN.

2- The driver’s license number is required, as well as the age and years of experience of the people who will be driving the vehicle. This info is essential since, at a younger age and with less experience, the risk on the road tends to be higher, and this directly influences the fact that the policy may also be more expensive.

3- Mileage is also information you should keep in mind so that the insurer will have a clearer picture of your road trips.

4- What use do you give the vehicle? Do you use it on a day-to-day basis?

5- If you had a car insurance policy with another insurance company, it is necessary that you provide information such as the name of the insurance company, limits, and coverage.

Who does this policy cover?

Depending on your coverage, the auto policy covers physical or material damage caused to third parties; it can cover the driver and passenger, damage caused to your vehicle, and roadside assistance, among others. The personal auto policy covers you and other members of your family who drive the car with your consent. Remember, this policy covers personal driving when you go to work, go out for a trip, go on an errand, etc. 

If you use your vehicle for commercial purposes, you must make clear when buying your car insurance. For example, to provide transportation services to other people under the modality of shared trips in apps such as Uber or Lyft, at the time of quoting, you must make it clear that the vehicle is used for this purpose.

Common auto coverages

Although basic auto insurance covers damage caused by your car, it does not cover damage caused to your vehicle. That is why you should consider other coverages such as:

Collision

Damage to your car generated by the crash (collision) with another vehicle or object, such as a tree, a wall, a lamp, etc., is covered. The coverage in these cases applies as long as you are responsible for the incident.

Comprehensive

In this case, theft or damage caused by something other than a collision is covered, for example, flood, fire, vandalism, falling rocks, or trees.

In summary,

Remember,  if you compare policies, you must consider that they all offer the same benefits so that the comparison is fair. Beyond the price, you should also look at what the coverage includes explicitly, its advantages, and the payment schedule.

Our expert team will provide you with all the information you need and advise you in your process.