If you own a vehicle, it is important for you to understand how your insurance coverage works. Understanding how your insurance coverage works will help you make smarter decisions in regards to it. Here are some aspects to know about.
You Are Required to Carry Car Insurance
In the United States, every state except New Hampshire requires you to carry car insurance. Each state sets their own minimum car insurance requirements. You generally have to have car insurance before you are even allowed to register your vehicle with the state. Any insurance company you contact will be able to tell you what the minimum insurance requirements are for your state.
Car Insurance Generally Goes with Your Vehicle
When you purchase car insurance that insurance is designed to protect your vehicle. It doesn't matter if you are the person driving the vehicle, or if you let a friend drive your vehicle for the day your car insurance will provide you with coverage for your vehicle and whoever is driving the vehicle.
The one except to this if you have a named driver policy. With a named driver policy, only the person on the policy is covered in the event of an accident with your vehicle. If you have a named driver policy, you shouldn't let anyone else drive your vehicle who isn't named on your policy.
There are Lots of Ways to Save on Car Insurance
Next, it is important to understand that there are lots of ways that you can save on your car insurance policy. Most insurance companies offer a wide range of discounts. Some companies will just give you those discounts, and with other insurance companies you have to ask for the discounts.
For example, common discounts that many insurance companies offer include multiple-car discounts, full-payment discounts, and anti-theft discounts. Talk to your insurance agent to find out what discounts you can get.
Numerous Factors Impact Your Premium
Your premium is the cost that you pay for your insurance coverage. Your premium is based on many different factors, which is why it is important to always compare rates from different insurance companies, as each company puts a different weight on these factors.
Factors that impact your insurance premium are things both in and outside of your control, such as your driving record, age, location, occupation, and the type of vehicle that you drive.
If you ever have any questions about how your insurance coverage works, reach out to an insurance agent, like Reinhardt's Insurance Agency. Your insurance agent will be able to help answer your questions, and make sure that you have the right level of coverage to meet state laws and to protect yourself and your vehicle.