Auto Insurance

 

What is auto insurance?

Auto insurance provides essential financial protection in the event

of an accident. This contract outlines the agreement between you

and the insurance company: you pay a premium, and in return, the

insurer covers your losses as detailed in your policy. It's a vital

safeguard for your peace of mind. Make sure to understand your

coverage to ensure you're adequately protected.

Auto insurance provides property, liability and medical coverage:

• Property coverage pays for damage to or theft of your car.

• Liability coverage pays for your legal responsibility to others
  for bodily injury or property damage.

• Medical coverage pays for the cost of treating injuries,
  rehabilitation and sometimes lost wages and funeral expenses.
   

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.

Most auto policies are for six months or a year. Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium.

Why do you need auto insurance?
It's really all about protecting yourself financially.

• If you're in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it.

• If you or any passengers are injured in an accident, medical costs can be extremely expensive.

• If you or your car is responsible for damage or injury to others, you may be sued for much more than you're worth.

• Not only is having insurance a prudent financial decision, many states require you to have at least some coverage.
   

Questions to ask
Downes Insurance is an advocate for finding auto insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion:
 

• How much can you afford to pay if you get in an accident? (To keep premiums low you may want to have a higher deductible and be willing to pay more for repairs.)

• What is the insurance company's level of service and ability to pay claims?

• What discounts are available? (Ask about good driver, multiple policy and student discounts.)

• What's the procedure for filing and settling a claim? (Ask who to call and what happens after you file a claim.)