Auto Insurance: What You Need to Know

Buying Dublin Auto Insurance is required for anyone who owns a vehicle, but do you understand what exactly you’re paying for and what you’re receiving in return? Since this is a required coverage, many don’t think to ask questions about it, instead viewing it as just a necessary monthly payment. Read on, and we’ll tell you all you need to know about your comprehensive auto insurance policy.

Understand the types of coverages.

  • Bodily injury – Covers losses associated with injury or death if your vehicle causes damage to another.
  • Medical payments – Covers medical costs for you and your passengers should you get injured while driving.
  • Uninsured motorist – These covers losses you or your vehicle sustain from someone who has insufficient coverage or no auto insurance coverage at all.
  • Collision coverage – Covers damage to your car up to its book value. Collision coverage carries a deductible, which is the amount per claim you have to pay before the insurance takes effect. The lower the deductible, the higher the premium. While it is legally optional, a lending institution or leasing company usually requires collision coverage, states How Stuff Works.
  • Physical damage – If your vehicle sustains damage from wind, hail, fire, vandalism or theft, this component comes into play.

The type of vehicle you drive affects your insurance premium cost.

Driving the latest and greatest vehicle will have an impact on how much you pay for insurance. Because repairs and replacement parts are more expensive on luxury models and new cars, the premium will reflect that.

In addition, highly desired vehicles by thieves, such as the Cadillac Escalade, will have higher premium rates since the risk is higher for insurance companies.

You affect your premium

Of course, your driving record and ticket history will affect your insurance rate. However, more than just that, who you are further impacts your monthly payment.

For example, single males under the age of 25 pay the highest rates. Statistics show they are involved in the most accidents, so insurance companies charge young men higher premiums than women of the same age. Married men, who statistically have fewer accidents, pay less than single men. A handful of states do not allow rates based on sex or age, but that prohibition has tended to result in higher rates for women, not lower rates for men.

Buy as much insurance as you need.

Being underinsured is a costly mistake, and so is overpaying for coverage. However, evaluate the worth of your vehicle, your assets and income when deciding how much liability, accident and property damage coverage you need. Remember, if you drive a brand new BMW, you’re going to need higher liability limits to protect yourself in an accident.

If you don’t carry the right amount of insurance, you run the risk of being sued for the remaining balance. If you have more owned vehicles and a house, for example, you could end up in financial ruin. If this is the case, consider purchasing a Personal Umbrella Liability insurance policy for good measure.

About Haughn & Associates

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.

2 comments on “Auto Insurance: What You Need to Know

  • Oscar O'Malley says:

    It’s interesting that you mentioned that highly desired vehicles will have higher premium rates when it comes to insurance. My wife and I have been looking for a new car, and I’ve been thinking about how much more our insurance will be every month. It’s good to know which options will affect our bill in different ways. Thanks for the information.

    Reply

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