How many car accidents happen in the United States annually?
Unfortunately, the number of car accidents each year rests between 20 and 50 million.
We sincerely hope that you never experience a car crash. However, if you do, you’ll want to make sure you have the right car insurance coverages. To help you out, we’ve created this short guide that dives into the ins and outs of auto insurance.
So take a look! By the time you’re done reading this article, you’ll know whether or not you need to upgrade your policy.
What Does Full Coverage Mean?
Let’s start by going over what full coverage means. You hear the term full code coverage thrown around a lot in the insurance world, but few people understand what it means. The reason mainly is due to the fact there isn’t such a thing as full coverage.
Instead, what people usually mean is that their policy has more than the minimum amount of coverages required by law. To help you further understand this, you’ll need to learn how to think about your auto insurance policy differently.
How to Think About Your Auto Insurance Policy
Your car insurance policy can be broken out into three parts. It covers your body, your money, and your car. The parts of your coverage that protect your body are things like medical payments or uninsured motorists.
The parts of your coverage that protect your money are the liability coverages, like bodily injury liability or property damage liability. Lastly, things like comprehensive and collision coverages will help protect your car.
When your car insurance policy covers your body, your money, and your car, you could consider it to be a full coverage policy. However, simply having all of the coverages you need is enough. Next, you have to make sure you have the right coverage limits.
Understanding Coverage Limits
If you’re trying to save money it can be tempting to opt for the lowest coverage limit available. While low coverages equal lower premiums, you need to consider what type of situation you’d be in if a car accident were to take place. What would a minimum of $10,000 in property damage be able to cover if there was a major crash?
Have your insurance agent thoroughly review all of the different coverage amounts on your policy, as well as your current lifestyle situation. Together, you can come up with coverage limits that will work for you when you need them the most. You can also discover here the best tips for dealing with insurance companies after a car accident.
Do you have a safe driving record? Then try to save some money by getting auto insurance quotes from companies that reward safe driving.
Apply Your Car Insurance Knowledge
Now it’s time to put your new knowledge to the test! Go ahead and get a copy of your auto insurance policy, and start reviewing your coverages. Look to see if you have coverages that apply to your body, money, and car.
Next, determine whether or not you have the coverage limits you need. If not, it might be time to upgrade your policy.
Are you ready to learn more fun tips like the ones in this article? Check out the rest of this site.