Auto Insurance

Having automobile insurance coverage is a vital part of being a responsible car owner as it provides essential financial assistance after an accident. Here’s what you need to know about getting the right car insurance policy.

Why Automobile Insurance?

The following are key reasons every driver needs auto insurance:

• It may cover injury expenses for you and your passengers if an accident occurs. Without insurance, you could be sued and liable for expensive medical bills.
• It may pay for repairs if your car is damaged in an accident, regardless of who is at fault. This prevents you from having to foot the bill for costly auto body work.
• It may cover repairs to another driver’s car if you’re found responsible for the accident.
• Most states mandate drivers to carry minimum liability insurance. Driving without proper insurance coverage may result in fines, having your driver’s license revoked or having your car impounded.

Why Auto Insurance Is Important

Car insurance is crucial because it ensures compliance with regulations, preventing potential legal consequences. In addition, auto insurance protects uninsured or underinsured drivers, fulfills vehicle financing or leasing requirements and covers legal costs if you’re sued after an accident. Ultimately, it’s an essential safeguard against the financial burdens associated with accidents, theft, vandalism and other noncollision events.

How Auto Insurance Rates Are Determined

Rates can vary significantly among policyholders. When pricing your policy, insurers look at various factors, including the following:

• Age
• Driving record
• Credit score
• Location
• Vehicle type

How to Save on Car Insurance

The good news is there are many ways to reduce your auto insurance premiums:

• Compare rates from multiple insurers. Premiums can vary dramatically between companies, so shop around.
• Choose a higher deductible. This can lower your rates substantially, but you will need to be prepared to pay more out of pocket after a claim.
• Ask about discounts. Many insurers offer discounted rates for things like good driving records, anti-theft devices and bundled policies.
• Improve your credit score. Some insurance companies use your credit score to determine your premium. Improving your credit score can help reduce insurance costs.
• Review your coverage regularly. As your circumstances change, such as getting older, moving to a safer neighborhood or paying off your car loan, your insurance needs may change as well.

While you want to pay the lowest premiums possible, it’s important not to skimp on coverage. Discuss your coverage needs with a knowledgeable car insurance agent to ensure you have adequate liability limits and full coverage auto insurance on your vehicle.

Learn More

Free yourself from the burden of unexpected expenses. Contact Franklin Ins Agency today to get a quote.