Why do I need auto insurance?
Auto insurance is like a silent passenger that sits calmly next to you on every ride but is ready to have your back when things get tough. Not only does it provide financial protection should an accident occur, it offers peace of mind for those unexpected moments. Without it, you could be faced with shelling out cash for hefty out-of-pocket expenses.
We’re breaking down how auto insurance works, why it matters, and how to make sure you’re covered.
How does auto insurance work?
Auto insurance provides financial protection against losses related to owning or operating a vehicle. In most states, auto insurance is a legal requirement and driving without it can lead to fines, suspension and other repercussions. Taking these factors into consideration, auto insurance is one small step that helps to not only protect your investment but gives you peace of mind knowing you’re covered should something happen. It’s all about being prepared and responsible each time you get behind the wheel.
Your car insurance policy is made of several different coverages that help pay for expenses if you get into an accident.
What are the different types of auto insurance coverage?
Whether you’re a new driver or considering whether you should make changes to your policy, it’s important to understand that all auto insurance policies are different and can vary upon the level of protection you want. Let’s dive into auto coverages and what they mean for you.
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Liability coverage
Liability coverage helps pay expenses resulting from injuries you cause to another person or damage you cause to their property in a car accident. -
Bodily injury liability coverage
Protects you if you’re held responsible for injuring another person. -
Property damage liability coverage
Helps reimburse another person for property you are held responsible for damaging. -
Personal Injury Protection (PIP) and medical payments coverage
These coverages help pay for medical expenses for you and your passengers after an accident. Personal Injury Protection, also known as PIP, can also pay for additional related expenses, like lost wages. -
Uninsured/underinsured motorist coverage
Uninsured and underinsured motorist coverage helps pay medical and other expenses if you or your passengers are injured in an accident caused by a driver who has no insurance or not enough to cover the injuries. This coverage may also pay for injuries resulting from a hit-and-run accident.
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Coverage minimums
In each state that requires auto insurance, there is minimum coverage every driver must meet. In general, liability insurance is required for auto insurance policies. Medical coverage, like MedPay or PIP, may also be required depending on the state.
Optional coverages
Collision coverage helps pay for the cost to repair or replace your vehicle when it hits another car or stationary object or is hit by another car.
Comprehensive coverage protects your car from damage not related to a collision. This includes things like damage from fire, vandalism, theft, flood, and more.
What doesn’t auto insurance cover?
Auto insurance covers you in many situations, but there are a few exceptions where a loss may not be covered. For example, if your car is damaged by a flood and you don’t have comprehensive coverage, your insurance won’t cover the damage.
There are situations that are generally not covered by most insurance policies.
- Wear and tear
- Damage caused by racing
- Intentional damage
- Damage caused by drivers specifically excluded from your policy
Each auto insurance policy is different and often varies by state. Review your policy documents or speak with your insurance company to make sure you fully understand what’s covered in your policy.
How are auto insurance rates set?
There’s no one-size-fits-all answer to this question. Auto insurance rates are based on a variety of different factors. Each insurance company decides what factors are important and how much weight to give each factor, subject to certain regulatory restrictions. It’s not just about the amount of coverage you need, but there are individual policyholder risk factors that are considered. This can include things like your driving history, the vehicle’s age, make and model.
Deductibles explained
A deductible is your share of the cost before your insurance will start paying for a covered loss. You need to pay your deductible before your insurance kicks in. Your premium is related to your deductible — a low deductible means you pay less in the event of a claim, but more for your insurance premium. On the other hand, raising your deductible will lower your policy’s premium.
How to save money
Being a smart shopper and doing a little research on the types of discounts your insurance company offers can help put more money back into your wallet.
Manage deductibles
Bundling
Thinking about bundling your home and auto insurance? Smart move! It will probably save you some cash, plus, you can manage both of your policies in one account.
Roadside assistance
It’s happened to all of us – you get in your car, try to turn it on and the battery is dead, or you are driving and suddenly you hear the hiss of air escaping from a tire. These moments of frustration are something all drivers can relate to – that’s where roadside assistance can help.
Plymouth Rock’s 24HR Roadside Assistance is available as an optional upgrade for New Jersey and Pennsylvania customers with Plymouth Rock’s Assurance Preferred package. In addition, Roadside Assistance is included in the Assurance Premier package for Massachusetts, New Jersey, New Hampshire, Pennsylvania and Connecticut customers.
Some scenarios Plymouth Rock’s 24HR Roadside Assistance can help with include:
- Flat tires
- Help with being locked out of your vehicle
- Emergency gas delivery
- Towing due to a mechanical breakdown
Windshield and glass repair
In most cases, a windshield replacement or glass repair will be covered by auto insurance if you have comprehensive coverage, but if you have a glass deductible you will need to pay your deductible first.
Damage that can be repaired includes:
- Cracks and chips from road debris
- Damage from falling objects
- Vandalism
- Hail damage
- Damage from hitting an animal
- Theft-related damage
Why knowing the basics of auto insurance matters
Understanding the basics of auto insurance before committing to buying a policy helps. Doing a little bit of research before signing on the dotted line will make things less stressful should you ever need to file a claim. It protects you against liability and can help pay for medical expenses and vehicle repairs, hopefully eliminating surprises you don’t want. Trust us, you will be thankful to have auto insurance with Plymouth Rock if you hit a bump in the road.
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Common questions about car insurance
How much car insurance coverage you need depends on your personal financial situation. The best way to find out how much car insurance you need is to give us a call. One of our insurance experts will help you find the right coverage for the right price.
Your deductible is the amount you pay out of pocket before your insurance starts paying. A higher deductible means paying more out of pocket in the event of a claim, but could mean a lower premium.
We will help pay for a rental car if your car is in the shop due to a covered event if you carry comprehensive or collision coverage.
An insurance company usually declares a car to be a total loss when the cost of repair is greater than the cost to replace.
Liability coverage helps pay for injuries or property damage you’re liable for in an accident. Full coverage often refers to comprehensive and collision coverage, which helps cover damage to your vehicle.
