How to Choose the Right Auto Insurance

Your Guide To Choosing the Right Auto Insurance Coverage

After you purchase your vehicle, you will need to prioritize purchasing suitable auto insurance coverage. Choosing the right auto insurance policy will protect you against costly repairs in the event of an unexpected accident or damage. In terms of acceptable coverage limits, each state has different laws, so keep this in mind when considering coverage options.

Read on to discover how to choose the right auto insurance for your vehicle needs.

The 5 Types of Auto Insurance

The following types of auto insurance plans can be purchased on their own or together. Determining the proper coverage for your driving habits is of utmost importance when you take to the roads.

Liability

Most states have a minimum coverage required for registration of vehicles. A liability insurance plan is the most basic coverage that almost every state requires. Liability coverage means that any damages done as a result of your actions are covered. When deciding a plan, you should consider choosing a slightly higher minimum than your states requirements. If you decide to go with the state minimum, you put yourself at risk of paying more out of pocket during an accident. This plan does not include damage or injury to you or your passengers, so keep this in mind when choosing the right auto insurance coverage.

Collision

Collision coverage pertains to damages done to your vehicle even if you are at fault. This insurance covers any collision made with an object such as a telephone pole, fence, or even another car. A collision policy will take care of repairs needed, as well as the cost if your vehicle is totaled.

When a vehicle is totaled it means the cash value is lower than the necessary cost of repairs. In this instance, the coverage money from the necessary repairs will be placed toward the purchase of a new vehicle. Depending on your state this plan may also cover damages from a hit and run, or if the vehicle is flipped.

Comprehensive

Comprehensive coverage will take care of damages done from something other than a car accident. Situations included in this type of insurance are damages from natural disasters, theft, vandalism, and damages caused by an animal. With this coverage, there is a deductible that will have to be paid out of pocket before the insurance company will pay the remaining repair amount. For example, if your car sustained $3,000 in damage from being hit by a deer, with a comprehensive policy you may pay as little as $500 toward repairs needed. The remaining amount will be paid by the insurance company for $2,500.

Uninsured or Underinsured Motorist

Choosing the right auto insurance coverage is hard, but what if you are in an accident where the other driver has no insurance? This coverage plan protects you if another vehicle hits you and is uninsured or underinsured. Uninsured means that the other vehicle involved in the accident either fled the scene and did not leave their information, or if the driver has not purchased their own insurance. Underinsured means that the other driver’s plan does not cover the full amount of damages your vehicle took on. In both of these cases, if this policy is purchased the expenses for repairs will be covered by your own insurance company. If you are partially responsible in the accident, some policies may not pay the full amount.

Medical Coverage or Personal Injury Protection

Medical and personal injury protection (PIP) are coverage policies that cover medical expenses for you and your passengers no matter who is at fault. This can include expenses for hospital visits, x-rays, or any surgeries that may be needed as a result of the accident. PIP differs from medical coverage as it offsets any expenses resulting from the loss of wage and child expenses. This plan also is different because it also covers if you are struck by a car while not driving. A situation where PIP can be used this way is if you are walking or biking on the side of the road and a driver hits you with their vehicle and you sustain injuries.

Related: The Ultimate Car Accident Checklist

How to Choose Your Coverage and Set Deductibles

When choosing the right auto insurance coverage, you need to look at all the details. Every insurance company has varying coverage amounts along with different prices, so comparing and contrasting insurance quotes is a great way to understand how each plan differs.

The main difference can be seen with the amount of deductible paid in each plan. The deductible is the amount of money you will have to pay before the company covers expenses. Deciding on which amount works for you all depends on your budget. If you know that you can afford to pay $500 out of pocket then choose a higher deductible after an accident so your insurance plan costs less. Looking at the numbers definitely factors into choosing the right auto insurance coverage.

Shop With Us at Burlington Kia

Now that you know all about auto insurance, you can begin shopping for a vehicle! Thankfully, at Burlington Kia, we have a vast inventory of both new and used cars for you to choose from. Start by browsing our fleet of available vehicles online, then use the button below to contact us and schedule a test drive!