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Auto Insurance Coverage

Explore our auto insurance coverage articles to learn everything you need to know.

Car Insurance NeedsState Minimum Auto Insurance+3

How Much Car Insurance Do You Really Need? A State-by-State Look (Focus on a few key states for detail)

How Much Car Insurance Do You Really Need? A State-by-State Look (Focus on a few key states for detail)

Confused about car insurance needs? This guide reveals how much auto insurance you really need, covering state minimums and essential extra coverages for true financial protection.

IE
Insurance Expert
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Auto Insurance CoverageLiability Insurance+3

A Comprehensive Guide to Auto Insurance Coverage Types (Liability, Collision, Comprehensive)

A Comprehensive Guide to Auto Insurance Coverage Types (Liability, Collision, Comprehensive)

Demystify auto insurance! This comprehensive guide explains Liability, Collision, and Comprehensive coverage, empowering you to choose the right protection for your vehicle and financial security.

IE
Insurance Expert
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Full Coverage Auto InsuranceAuto Insurance Coverage+3

Full Coverage Auto Insurance: What It Includes and Is It Worth It?

Full Coverage Auto Insurance: What It Includes and Is It Worth It?

Demystify full coverage auto insurance! Learn its core components—liability, collision, comprehensive, and more—and determine if this essential car insurance protection is worth the investment for your financial peace of mind.

IE
Insurance Expert
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Insurance BasicsUnderstanding InsuranceInsurance CoverageFinancial PlanningBeginner GuideAuto InsuranceCar InsuranceLiability CoverageComprehensive CoverageCollision Coverage

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Frequently Asked Questions About Auto Insurance Coverage

Collision coverage pays for damage to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault. Comprehensive coverage pays for damage to your vehicle caused by events other than collisions, such as theft, vandalism, fire, natural disasters, falling objects, or animal collisions. While both are optional coverages, they're often required if you have a car loan or lease.
Liability coverage protects you financially if you're responsible for injuring someone or damaging their property in an auto accident. It consists of bodily injury liability (covers medical expenses, lost wages, and legal costs if you injure someone) and property damage liability (covers repair or replacement costs if you damage someone else's property). This coverage is legally required in most states and protects your assets from being seized to pay for damages you cause.
Your auto insurance rates will likely increase after an accident if you're determined to be at fault. The increase typically lasts 3-5 years and can be substantial (20-40% or more). However, many insurers offer accident forgiveness programs that prevent rate increases after your first at-fault accident. Some insurers may not raise rates for minor claims or if you have a long history of safe driving. If the accident wasn't your fault, your rates might not increase at all.
A car insurance deductible is the amount you pay out of pocket before your insurance covers the rest of a claim. For example, with a $500 deductible, if repairs cost $2,000, you pay $500 and your insurer pays $1,500. Deductibles apply to collision and comprehensive claims, but not to liability claims. Choosing a higher deductible lowers your premium but means higher out-of-pocket costs when you file a claim. Deductibles are applied per claim, not per policy period.
Common auto insurance discounts include: safe driver discounts (accident-free for several years), multi-policy discounts (bundling auto with home/renters insurance), multi-vehicle discounts, good student discounts, defensive driving course discounts, safety feature discounts (anti-theft devices, anti-lock brakes), payment discounts (autopay, pay-in-full), membership discounts (professional organizations, alumni associations), and loyalty discounts for long-term customers. The availability and amount of discounts vary by insurer.