Understanding what car or auto insurance is about is essential for any owner signing up for a policy. With a myriad of policy terms and coverage options available, we understand how confusing the topic can be for many individuals.
At Jensen-Sundquist, we proudly serve as a local car insurance company based in Wisconsin. Having an understanding of the industry, we explore the ins and outs of car insurance to shed light on the most essential details every policyholder should know. Take a look.
What Does a Car Insurance Policy Cover?
Comprehensive car insurance policies typically offer coverage for various aspects related to one’s vehicle. While every policy is different to accommodate a person’s unique needs and circumstances, standard policies often include key elements, including:
- Liability coverage: This coverage protects vehicle owners from the expenses associated with causing an accident. Should a victim hold them responsible for bodily injury or property damage, this coverage helps pay for medical expenses, repair costs, and legal fees.
- Collision coverage: Collisions with other vehicles or objects can be costly. Damaged vehicles will need repairs or replacements, which this coverage can help pay for.
- Comprehensive coverage: This coverage protects vehicle owners against damage to their cars due to incidents other than collisions. Common examples include crashing into an animal, theft, vandalism, and natural disasters.
- Uninsured or underinsured motorist coverage: Sometimes, other drivers involved in an accident have insufficient car insurance or don’t have any at all. This coverage helps pay for the necessary expenses they would face in those unfortunate events.
What Do All of the Policy Terms Mean?
Common terms that people might encounter when looking for a car insurance policy include:
- Deductible: The amount one pays out of pocket before the insurance coverage kicks in. Choosing a higher deductible often results in lower premiums but requires people to pay more for a claim.
- Premium: The amount someone pays regularly to maintain their car insurance coverage. Certain factors can impact a premium, including driving record, age, location, and the type and age of the vehicle.
- Coverage limits: These limits determine the maximum amount that an insurance company will pay for a covered claim. Understanding the limits of a car insurance policy is important to ensure it protects certain assets.
Questions You Should Ask Your Agent When Looking for Car Insurance
When shopping for car insurance, it’s essential to learn about a provider as much as possible to make an informed decision. Consider the following questions to ask a local auto insurance agent:
- What coverage options are available?
- Which options are suitable for my needs?
- What is the typical turnaround time for processed claims?
- What discounts might I qualify for?
- How does my driving record or vehicle affect my premium?
Asking questions about how affordable car insurance can be or how much you would pay will always depend on your unique circumstances. As such, it is wise to speak with a reliable agent to determine the best policy for you.
Final Words: Call Jensen-Sundquist for a Free Quote
Navigating the world of insurance can understandably be intimidating, considering the many options and factors that can affect the final price. At Jensen-Sundquist, we are dedicated to helping our customers find the best and most affordable auto insurance policy that meets their needs. Connect with us today to discover options tailored to your situation.