Our No-Fee Promise: You Don’t Pay Unless We Win

Auto Insurance and How It Works

Mar 7, 2022 | Auto Insurance

The number of uninsured drivers in the United States is believed to be around 32 million. This figure varies a lot depending on where you are in the country. This is sometimes determined by the cost of auto insurance. Other times, it’s due to a lack of knowledge about which vehicle insurance company to choose.

Factors of Car Insurance Pricing

A variety of factors go into determining the cost of car insurance. It’s also not uncommon to receive different quotes from different businesses. These can include the following:

  • The type of car that is covered by an insurance policy
  • How long has the policyholder been on the road?
  • The policyholder’s age.
  • Driving record

When looking for vehicle insurance, there are a few terms you should be aware of. The phrase “premium” is one that you may come across. Simply put, this is the amount you must pay the insurance company to cover your vehicle. Deductible is another phrase for the same thing. You must pay this amount before the insurance company will pay out. You can reduce the overall cost of your insurance by increasing your deductible.

What Does Comprehensive Insurance Cover?

One of the more confusing policies is comprehensive insurance. This sort of insurance appears to cover all parts of an accident, however, it doesn’t. In actuality, it only protects a vehicle against harm caused by something other than another vehicle. This includes the following:

  • Vandalism
  • Theft
  • Hitting a living animal
  • Weather-related harm

Nothing covered by liability insurance is covered by comprehensive insurance. As a result, no medical expenses or car repairs incurred as a result of a traffic accident are covered. It also doesn’t cover you if you collide with a stationary item like a mailbox or a wall. This form of coverage is optional for car owners.

Comprehensive insurance is required for people who leased an automobile or took out a loan to buy one. In fact, it is frequently required by the lease or loan agreement’s terms.

Are you Liable for the Accident?

You are liable if you are the cause of a car collision. In terms of money, this implies you’ll have to pay for the victim’s vehicle repairs and medical expenses. It is also known as minimum coverage and is the most basic type of affordable vehicle insurance.

There are two types of liability insurance. Depending on the laws of your state, you may be required to obtain both. These two sections address the following topics:

  • Personal property damage
  • Other parties involved suffer bodily harm/physical damage.

Keep in mind that your responsibility only extends to the victim(s) and not to you. Furthermore, you will be responsible for paying for your own medical expenses and car repairs out of pocket.

What is Collision Coverage

Collision coverage can be considered as an extension of comprehensive coverage. It covers your vehicle even if you are not driving at the time of the collision.

If your friend is driving at the time of the accident, collision insurance would cover the damage. This motor insurance, unlike comprehensive, covers collisions with unmovable object. Collision coverage, on the other hand, does not cover any damage to other vehicles involved in the accident, nor does it cover medical expenses.

What Auto Insurance Does Not Cover

Even if you have complete coverage, there are some things your policy won’t cover. Wear and tear is an example of coverage that is often not covered. You will have to pay for it out of pocket if your car is experiencing general age-related difficulties or breakdowns.

If you wish to add people aside from yourself to the policy, you’ll have to do it separately. That implies your policy won’t cover other passengers in your car or if you’re driving someone else’s car. Finally, if you work for a ridesharing firm as a contracted driver, you will not be insured. Uber and Lyft, for example, have extremely stringent insurance requirements. For this, you’ll need specialized company insurance.

Have More Questions About Auto Insurance?

It is always preferable to get legal assistance if you are in an accident or are involved in a car insurance claim. In the event of an automobile accident, insurance firms are instructed to decrease payments. This may result in you not receiving the compensation you deserve. Give KAASS LAW a call at 310-933-5171.