The good news is, if you're in an accident while driving a borrowed vehicle, there's a chance the owner's car insurance may cover some or all of the damages. This means your insurance will likely cover another driver in the event of an accident, as long as they had your permission to drive your car.
Some states require you to have additional coverages on your car insurance policy, such as uninsured motorist coverage or personal injury protection (PIP). Here's a rundown of the types of coverage available—some are required; others are optional; all are priced individually (a la carte) to let you tailor your policy to fit your needs and budget.
Uninsured motorist coverage provides financial protection if you are hurt in an accident and the other driver doesn't have car insurance. You don't have to switch your insurance to your new car right off the bat. Most insurers offer a grace period for updating your policy with your new ride.
Understand the different types of auto insurance coverage
There are six common types of car insurance coverage: auto liability coverage, uninsured and underinsured motorist coverage, collision coverage, comprehensive coverage, personal injury protection, and medical payments coverage. Each type of coverage provides a different level of protection, and all are priced individually to let you tailor your policy to your specific needs. If you're not sure which types of coverage you need, your car insurance company can help you determine the best options for your situation.
Consider your personal risk factors
There are many factors to consider when determining if your car insurance company is still providing the coverage you need. Your personal risk factors, such as your age, driving record, and where you live, can all affect your premium. If you have any changes in your life that may impact your risk factor, be sure to let your insurer know so they can adjust your coverage accordingly.
Review your current car insurance policy
It's a good idea to review your car insurance policy periodically to make sure it's still providing the coverage you need. Your needs may have changed since you first purchased the policy, and it's important to make sure your coverage still meets those needs. You may find that you no longer need certain coverages or that you need more coverage than you currently have. Swapping providers isn't as simple as cancelling one policy and purchasing another, so be sure to follow the proper steps if you do decide to switch.
Compare rates with multiple companies
There's no one-size-fits-all when it comes to car insurance, which is why it's important to compare rates from multiple companies before settling on a policy. Your car insurance company should provide the coverage you need at a price you're comfortable with. If your needs have changed or you're not happy with your current company, it might be time to switch. Use The Zebra's insurance comparison tool to see rates from different companies and find the best policy for you.
Ask the right questions when shopping for car insurance
It's important to ask your car insurance company if they are still providing the coverage you need. This is especially important if you have had any changes in your life that might affect your coverage. For example, if you've moved, gotten married, or had a baby, you'll want to make sure that your coverage is still adequate. You can also ask about discounts that you may be eligible for, such as safe driver discounts or good student discounts.
Comments
Post a Comment