4 Things to Know About Your First Auto Insurance Policy

Purchasing your first car is a big milestone and one that comes with important responsibilities. Choosing auto insurance includes deciding what coverage and deductibles you need.

It is important to first realize that a number of variables such as age, marital status, and home ownership can affect coverage and cost when it comes to auto insurance.  The type of coverage and size of deductible you want in the event of an accident may also influence the policy and restrictions you select.

Here are four of the most important elements to understand when considering your first your first auto insurance policy.

#1 Coverage Pays for Damages You May Cause

Liability insurance comes in two different varieties. In most states, both are types are mandated by law.

Bodily Injury Liability

This coverage could assist in covering your legal costs as well as the injured party’s medical expenses and lost wages in the event that they sustain injuries as a result of an auto accident you caused. This insurance frequently has two distinct limits: one for each injured person and another for each accident.

Property Damage Liability

This insurance can shield you if your car damages someone else’s property. You may not have to compensate the other party’s damages out of your own pocket if property damage coverage helps reimburse them for their losses.

#2 Coverage That Helps Protect You if You’re Injured

Personal Injury Protection (PIP)

If you are hurt in a car accident, this coverage might assist in covering your health insurance deductible (if you have one) as well as any additional medical expenses that go beyond the limitations of your health insurance. While you are recovering, this insurance may also cover your lost income. In the worst circumstance, PIP may assist in paying for your funeral costs. Keep in mind that not all states offer PIP.

Medical Payments

Similar to personal injury protection, this coverage may assist in covering your medical expenses related to an auto accident. However, this coverage extends to your passengers and any family members who were in the car at the time of the collision. This coverage can also assist in covering medical costs if you or a member of your family is hurt in a pedestrian accident or while riding in another vehicle.

#3 Coverage That Helps Protect You from Drivers Without Insurance

Uninsured/Underinsured Motorist

If you are hit by a driver who does not have auto insurance or whose policy limits are insufficient to fully cover the costs of the accident, this coverage may be able to help safeguard you. Depending on the insurance requirements in your area, it can also help cover the cost of any vehicle damage in addition to your medical expenses.

#4 Coverage That Helps Protect Your Vehicle

Collision

This coverage accommodates repairs or even the replacement costs of your car as a result of a collision with another car or item.

Comprehensive

This insurance might help with non-auto accident-related damage to your vehicle. Examples include theft, fire, and fallen objects.

Guaranteed Asset Protection (GAP)

You will normally receive fair market value for your car from your insurance carrier if it is stolen or totaled in an accident. However, if you still owe a lender more than the automobile is worth, GAP insurance may be able to help you get paid the price difference.

Finding the Best Auto Insurance Policy

Reliable insurance coverage is an important component of auto ownership. The first step is choosing an insurance agency you can trust.

At GWK Insurance, we help individuals and families get the proper coverage for their specific needs. Contact us today to help you find the right auto insurance policy coverage for your needs.