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Auto Insurance 101

Updated: Oct 18, 2022

Car insurance is important in most states as the law requires it. So whether you’re driving for the first time or have mastered the art since the iconic Ford Mustang made its entry into the market, you need it.

Aside from being a requirement, auto insurance protects you and other drivers, helping to cover losses, accidents, medical bills, and damages.

As one for the leading auto insurance associates in Wisconsin, we wanted to shed more light on the basics of auto insurance.

Here we go.

Car Covered by Our Auto Insurance

Types of Auto Insurance Coverage

Several options are available for car insurance coverage; auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage, and personal injury protection.

Liability Coverage

Auto liability coverage is compulsory in most states. Drivers have to buy at least the minimum liability coverage set aside by state law. Liability coverage is divided into two, which are bodily injury liability and property damage liability.

Uninsured and Underinsured Motorist Coverage

This coverage helps pay your medical bills or fix your vehicle. If an underinsured motorist hits you, it means their insurance may not cover everything.

Thus, the underinsured motorist coverage helps in such situations. Uninsured and underinsured coverage is required in some states.

Comprehensive Coverage

This insurance plan covers your car in cases of damages, theft, fire, hail, or vandalism. The comprehensive coverage helps to replace your vehicle, even up to the vehicle's cash value.

This coverage comes with a deductible fee, which you can pay before your insurer reimburses you for a covered claim.

Collision Coverage

Collision coverage deals with accidents where you hit another vehicle or a fence. This coverage helps with the repair or replacement of your car up to actual value and without your deductible. Collision coverage is optional and may be by your vehicle's lender.

Medical Payments Coverage

This coverage applies to payment of medical expenses if you or your loved ones are driving and get injured in an accident.

The covered cost may include; hospital visits, surgery, X-rays, and more. Medical payments coverage is required in some states and optional in others.

Personal Injury Protection

This coverage is known as PIP and is available in some states. PIP can help pay for medical expenses after an accident. It may also cover other expenses.

Personal injury protection is required in some states and optional in other states.

Factors That Determine the Price of Auto Insurance

The amount you’ll pay to insure your car depends on some factors, including:

  • Your car - its cost, cost of repair, risk of theft, etc.

  • How well you use your car.

  • Your driving record.

  • Your location.

  • Your deductible

  • Driving experience

Steps to Take to Insure Your Vehicle

To know the exact insurance policy you need, you have to consult the best insurance associates around you.

  • First, determine your state's minimum insurance requirements.

  • Consider your financial condition regarding the required insurance and determine whether you need to increase your limits to protect your assets.

  • Review the status of your driving record; check if you have any outstanding tickets or points on your driver's license.

  • Check your recent coverage to find out how much you should pay.

  • Collect competing quotes from insurance websites and individual companies which interest you.

  • Make calls and follow up with insurance associates and companies to get additional coverage information.

  • Inquire about discounts.

  • Evaluate the reliability of the insurance company you're considering by visiting your state's insurance department website, reviewing consumer comments, and talking to family and friends.

  • Review the policy again before finalizing it.

  • Lastly, don't forget to cancel your old policy.

Autos Covered by Our Car  Insurance

Preserving your life and property is imperative. You can select from different policies to pick your preferred coverage. T4 Insurance Solutions are one of the best insurance associates you can find in Wisconsin. Protect your car and yourself today!



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