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    Car Insurance
  • Insurance, by definition, is a contract between you and the insurance company. The contract stipulates that as long as you pay the premium, the insurance company agrees to pay for your covered losses if you experience an accident, theft or vandalism, or your car is damaged by certain causes. The amount you receive in compensation is based on several factors, including your deductible and the limit you choose for your policy.

  • There are several categories of , each of which covers a different aspect of your risk as a driver. Here is a brief overview of these types of coverage:

    • Liability: If you are deemed at fault in a car accident, liability coverage will pay for repairs, medical costs for injuries suffered by others in the vehicle, plus other expenses related to the accident such as legal fees. Your liability limits are set at the time you purchase your policy. There are two parts to liability coverage: Bodily injury liability and property damage liability. The limits are the maximum amount the policy will pay out; anything above that would come out of your pocket unless you have other insurance.
    • Collision: If you hit another vehicle or an object (like a guardrail), your collision coverage will pay for damages or repairs to your vehicle after you pay a deductible (up-front amount). In other words, if you have collision coverage with a $500 deductible and you suffer damage that costs $1,500, your collision coverage will pay $1000 after you pay the first $500.
    • Comprehensive: Comprehensive coverage, which is also known as "other than collision," pays for losses to your vehicle if it suffers damage from something other than an accident. For example, if a tree falls on your car or you hit a deer while driving, some portion of that loss will be covered if you have comprehensive coverage. Like collision, comprehensive has a deductible attached to it.
    • Medical Expenses: This coverage pays for injuries that you, a family member or anyone else riding your vehicle may suffer in an auto accident, regardless of who is at fault. It also pays for injuries you or your family members may incur while riding in other vehicles.
    • Uninsured/Underinsured Motorist: This coverage pays for injuries and property damage you suffer in an accident when the driver at fault either is uninsured or does not have enough insurance to cover your injuries and damage. It will also cover you in the event that a hit-and-run driver flees the scene and you cannot file a claim against that driver’s insurance company.
    • Roadside Assistance: Many insurance companies offer this optional coverage. If you need a tow or service for a flat tire or dead battery, roadside assistance will provide that service for a nominal premium.
    • Rental Reimbursement: If your car is in the shop for several days and you need a vehicle, this coverage will provide that for you for a nominal premium.
  • helps you to recover from damage, injuries and expenses related to a collision or other incident. It is not designed for you to come out ahead financially, but it is designed to keep you from suffering major financial hardship due to an accident, whether it’s your fault or not.

    Car insurance is about risk transfer. If you don’t have insurance, the financial risk is on you in the event of an accident. Buying auto insurance mitigates some of that risk. For the cost of your premium, the insurance company will take on much of that risk for you.

  • When you get behind the wheel, you take a risk. You may attempt to be the best possible driver, but you also have to trust that everyone else on the road is driving well and paying attention, too. Auto insurance provides a safety net when drivers make mistakes.

    In the event of an accident, you are at risk financially. If the accident is not your fault, and the other driver does not have adequate insurance, you have to pay for all damages to your own car plus pay for any medical bills if you are badly injured.

    When you are at fault, you are typically liable for damages to the other person’s vehicle as well as the medical costs of injured victims. Additionally, you must cover the repairs to your own vehicle and the costs of legal fees if you are sued. All of your assets are at risk if you are uninsured or underinsured.

  • There are a number of ways to get car insurance. It is important to understand that there are well-established insurance companies that offer excellent car insurance coverage, and there are companies that were built solely to sell car insurance and make money. Some auto insurance companies gain customers through advertising and others through word-of-mouth and excellent service.

    When you buy insurance through an independent agent, you can eliminate confusion and find the best policy for your budget and insurance needs. Independent insurance agents do not sell policies for one company; they shop from many different companies to find you the best rates and coverage for your situation. No matter where in the U.S. you are located, there is a local Trusted Choice member agent near you who can get the answers you need about auto insurance before you buy.

  • Forty-seven states require vehicles to have some level of insurance coverage before they can be on the road. Failure to have insurance can mean a fine and/or jail time in these states, not to mention suspension or revocation of your driver’s license. In most of those states, the minimum required coverage is liability insurance to cover damage and injuries you may cause, though a handful of states require additional coverage, such as collision and comprehensive.

  • Looking for Auto insurance quotes can be confusing. When you get an Auto insurance quote from Farmers, we will guide you every step of the way to help you choose the amount of insurance that you determine to best fit your needs. Farmers can also compare rates with other top companies in just minutes to see who is offering the best price.

  • Insurance companies assess your risk by using a Risk Assessment Indicator, which is a numerical score based on credit report information. These Risk Assessment Indicators are highly predictive of future claim activities, helping insurance companies charge a rate that is appropriate for the risk of the insured individual.

  • While there are a number of factors that contribute to the cost of your premium, there are some things you can do to help reduce it. The car you drive will greatly affect your premium. To lower your Auto insurance costs, you may consider switching automobiles and driving a safer, slightly older, or less valuable vehicle. The more your vehicle is worth, the more it can cost to insure it. If you don’t want to change cars, you can modify your vehicle to make it safer or lower-risk by adding anti-theft devices or features like anti-lock brakes. In addition, selecting a higher deductible and ensuring that your coverage doesn’t lapse may help you keep your Auto insurance costs down.

    If you don’t want to change or modify your car, you can also consider changing your driving habits. Your driving record is one of the most important factors considered when determining your premium. You can also try cutting down on the miles you drive and bundling your insurance policies to save you money.

  • You must carry the required by law, which varies by state.

    After you have met the minimum legal requirements, you can choose to increase your coverage limits for greater reimbursement potential.

    For additional protection, you can also choose to add additional car insurance coverage, such as comp and collision, uninsured motorist, towing and labor, etc.

  • It depends. If you’ve elected to purchase towing and labor coverage, often called “emergency road service coverage,” you’ll be covered for items such as:

    • Towing.
    • Tire changes.
    • Jumps.
    • Locksmith services.
    • Roadside labor.
  • ypically, you’ll only be covered for the cost of a rental if you’ve purchasedrental reimbursement coverage.

    NOTE: Your insurance company may require that you have comprehensive and collision insurance coverage in order to purchase this type of coverage.

  • It might. Minimum requirements vary by states, so you may need to adjust your car insurance coverages and limits. Also, your auto insurance company may not offer service in your new state, so you might have to .

    Speak with your current insurance company if you are planning to move so you make the right adjustments.


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