Understanding all of the options available when it comes to car insurance can be complicated. It can be hard to know what options to choose, based on what’s required by law and what are among the best car insurance options for you.
Below are some of the most common questions most people have about car insurance coverage to help you maneuver through all of the options.
What is the minimum amount of coverage needed?
The amount of coverage required varies state-by-state. For most states, the minimum requirement is liability insurance coverage, which covers any injuries or property damage that you are at fault for. In addition, each state also has a minimum level of coverage for each type of insurance. To check what kind of coverage and what the minimum coverage amount is where you reside, click here.
What car insurance options are there?
There are different types of car insurance, depending on what kind of coverage you’re either required to have or desire. Below are the typical car insurance options and what they cover.
Liability Coverage – Covers any property damage or injuries caused by you in an accident. Does not cover your own persona injuries or property damage.
Personal Injury Protection – Covers any claim that you may file with your own medical insurance for any medical costs associated with an accident, whether you or another party is at fault.
Uninsured Motorist Coverage – Covers any costs for medical treatment, pain and suffering and lost wages to you (or your passengers) incurred from a car accident caused by another party that does not have insurance. Some states require a certain level of uninsured (or underinsured) motorist coverage,
Collision Coverage – Covers any necessary repairs to your car in the event of an accident, whether it’s crashing into another vehicle, an object, or rolling over. It also will cover any replacement costs in the event that your car is totaled and deemed inoperable.
Comprehensive Coverage – Covers to help pay for repairs to your car (or the replacement of your vehicle) as a result of damage caused by non-accidents, such as vandalism, fire, theft, falling objects, hitting an animal, or natural disasters.
Rental Reimbursement Coverage – An optional coverage to help cover any costs associated with renting a car while your vehicle is being repaired from an auto accident, vandalism, or a natural disaster. You can typically choose between renting a car from an approved provider and having the provider bill your car insurance company directly, or you rent from a provider of your choice and pay for the cost upfront and then seek reimbursement. You will need to consult your insurance company to determine what terms and conditions apply, such as a per-day or per-accident limit for coverage.
Towing and Labor Coverage – Covers the cost for emergency roadside assistance, for such expenses incurred from needing a tow, tire change, battery service, fuel delivery, or assistance with opening your car doors.
What happens if I damage my own car?
Accidents happen and it doesn’t necessarily mean that another party is involved. Perhaps you didn’t notice the pole when backing up your car or you accidentally hit the gas instead of the break and hit something. Any damages to your own property can be covered with comprehensive coverage.
What happens in a hit-and-run accident?
Any damage to your car can generally be covered through collision coverage, with the exception if you are in what is known as a “no-fault” state. You may wish to explore what is known as no-fault insurance coverage.
Am I covered if I drive another person’s vehicle or a rental vehicle?
The answer is generally, yes. However, the other party’s insurance company should typically cover you first and then any insurance coverage that you have should cover any costs that the other party’s insurance may not. You can also purchase additional insurance coverage from the car rental companies when renting a vehicle. You should check with your insurance agent about whether or not your current coverage is sufficient enough for you in the event you are in an accident.
If I’m injured, will my insurance cover my medical bills?
If you are injured in an accident, the costs associated with your medical treatment are covered depending on who is at fault and what kind of coverage you have. If you are not at fault and you live in a no-fault state, it is the other party’s insurance company and liability coverage that is responsible for paying your medical bills. If you are at fault and you live in a no-fault state, your medical expenses can be covered with personal injury protection coverage. If you are in an accident with a driver without insurance (or insufficient insurance), your medical expenses may be covered by uninsured insurance coverage.
How does car insurance work when you’re traveling out of state or out of the country?
Most insurance policies should cover you driving within the continental U.S. and Canada, but you should check with your insurance company to be sure. If you are driving while visiting another country, you will also want to check your insurance company, because coverage varies. Most insurance companies have the option for international coverage.
How much coverage should I get and what should my deductibles be?
The amount of coverage you get should depend on a number of factors, such as what you are legally required to have by the state you live in. Additionally, you will want to take a number of factors into consideration. Your insurance agent can go over your particular needs and circumstances to determine what’s best for you. Similarly, the deductibles you choose really depend on how much you want to pay in premiums, versus paying when there’s an incident. Your insurance agent can go over the different options for you and find the right amount of coverage you need at an affordable cost. To get a free quote and find an Allstate agent to assist you, click here.
Once I have car insurance, is there anything else that I need to do?
Once you have car insurance in place, the only thing that you will want to do is make sure that you pay your premiums on time to avoid any lapse in coverage and also notify your insurance agent if any circumstances in your life change, which may require additional (or even less coverage).
Hopefully these common questions and car insurance options help answer some of the questions that you may have about car insurance. If you have a question not answered, the qualified and licensed agents at Allstate are waiting to help you! To locate an agent in your area, click here or call us 24/7 at 1-877-810-2920.
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