Car Insurance Explained: Everything You Need To Know

If you're looking for a way to save some money on your car insurance, then this video is just what you need. In it I'm going to break down everything that you should know about the different types of coverage and how much they cost.

Hi! My name is Shahab Abbasi and in this video I'm going to be discussing the ins and outs of auto insurance. Now if you're like me, then there's nothing more frustrating than getting an expensive bill from your car insurer every month with no idea why or what might change next time around.

That ends today because we're going to talk about all the different types of coverage available as well as their costs so that when someone asks "What do you have?" you'll have a good answer.

Now, to start with let's talk about the coverage that every driver should have. This is what I call base insurance and it protects your vehicle in case of an accident or if someone sues you for any reason.

For example, if there's one person who gets injured in an accident with you, they may sue for money to cover their injuries. That's where liability coverage comes in because it helps pay for the legal fees involved with these kinds of claims.

Now liability coverage is required by law so it's not something you can avoid but the amount that your insurer will pay for each accident is different and you need to know how much depends on state law.

Your car is a big investment and it can be tempting to cut corners when buying, but you're going to want the right coverage. This article will explain what auto insurance covers so that there are no surprises down the line!

What Are the Elements of an Auto Insurance Policy?

Every insurance policy has components that you need to understand, such as:

• Premium: The price of your coverage, which is paid monthly, quarterly, or semi-annually.
• Your deductible is the amount you pay before your insurance kicks in. Your deductible is applied per claim and results in higher rates if you pick a lower one
• Coverage amounts: How much your insurance will pay out per accident or claim.
• Directives on how to submit a claim can be found in the Claim Filing section.

Types of Insurance Coverage: What They Are and How to Get Them

When you're shopping for auto insurance, understanding the different types of coverage available is critical. Some coverages safeguard you, your passengers, and your automobile.

According to Progressive Insurance, certain coverage types are required by law, while others are optional. Familiarize yourself with your state's insurance laws.

Collision Coverage

Collision coverage will cover damage to your vehicle while driving. If you hit another car or a stationary object, collision insurance applies and provides for the repairs of any damages that may have been incurred from this accident--even if they're not related to what happened before! Collisions are usually optional state-mandated policies in most cases but it can be necessary with outstanding loans on cars which come equipped standard nowadays anyway (not sure how else we could afford transportation).

Comprehensive Coverage

Many people buy comprehensive and collision coverage together, but these are distinct types of insurance. Comprehensive doesn't cover damage from accidents-related incidents to your car; rather this stuff covers natural disasters like hailstorms, earthquakes or fires (among others). If you've had something happen with a loved one in a vehicle that resulted due contact between them an animal then their compensation will include damages covered by the latter kind too!

Liability Coverage

Liability insurance protects you from any accidents that are your fault. If someone else needs medical attention or has property damage, then their damages may not be covered by the liability coverage because of a high limit for each aspect:

A-Limit on Physical Injury and Property Damage Caused By Others ( Limits apply if there is more than one person involved in an accident); B -Personal injury protection applies to those injuries occurring while operating a vehicle as well as certain other activities where people might sustain physical trauma-but only up until bodily harm amount exceeds Covered amounts; D – Bodily Harm includes surgeries needed after sustaining severe wounds which would have been Considerably greater before treatment.

• The largest amount of compensation that any one person may receive in a mishap.
• The total amount of coverage for all harmed parties in an accident.
• The maximum amount of compensation for any property damage you cause as a result of your negligence.

Use the example of 15/30/5 to better comprehend breakdowns. What that implies is that $15,000 is the maximum payout for one injured person, $30,000 for all harmed people, and $5,000 for property damage.

UIM is a form of insurance that covers injuries received in an accident caused by someone else who does not have insurance, or who lacks the financial ability to pay for damages.

Underinsured motorist (UIM) and uninsured motorist (UM) coverage is often sold as a package. If you're hit by an uninsured motorist, UMBI will pay your medical expenses. If you're hit by an uninsured driver, your vehicle damages will be covered by the UMPD. Additional coverage will be provided if the at-fault party did not possess adequate policy limits to fully compensate you for your losses due to lack of insurance coverage.

Medical Payments (MedPay)

MedPay is a medical payments coverage that provides limited coverage. It will pay for your medical bills, as well as those of any passengers you may have. It can act as a supplement to individuals who have health insurance that covers accident-related expenditures. For individuals who don't have health insurance, it's an excellent replacement. MedPay can also cover your deductibles and co-pays for other policies you own, such on your regular health insurance.

Personal Injury Protection (PIP)

No-fault insurance, often known as personal injury protection (PIP), is a form of automobile insurance that covers medical expenses without proof of negligence on the part of the other driver. PIP is required by no-fault accident laws in states with such legislation. Regardless of who is to blame, PIP will cover your injuries and costs in the event of an accident. Coverage will extend to additional drivers you list on your policy, family members, and additional passengers. PIP coverage is more comprehensive than MedPay and may include loss of income, child care costs, funeral expenses, and more.

Factors that Influence Your Insurance Premiums

How Stuff Works points out that numerous factors can influence your potential car insurance rates. You should familiarize yourself with these factors to better understand how your premiums are calculated. Some of the most important factors include:

• The type of vehicle you drive is important. Some cars are more expensive to repair, have a higher theft potential, and so on. You can use an online tool like the car insurance calculator from Cover to compare vehicles and see the premium differences.
• How many miles do you drive each year? If you travel further, your premiums could go up due
• How clean your driving history is. Where you live has a big bearing on this.
• Theft and vandalism are more likely in densely populated areas. State rates will be influenced by medical expenses and litigation costs, to name a couple of factors.
• Your age influences your insurance premium as well.
• Your sex. Men are more likely to be seen as a risk and have higher-priced vehicles insured.
• The policies and deductibles that you select.
• Prior claims.
• Your driving record will affect your rates. When you haven't had automobile insurance, your premiums will go up.
• The main reason you use your car. If you own a company vehicle, you'll need more coverage. You will almost certainly require another policy if you drive for ridesharing services.

Keep the following things in mind when purchasing automobile insurance. Before getting a policy, compare a few rates to see which one offers you the best coverage for your budget.