Allstate Insurance - Guide to Educating Yourself in Insurance

 

You probably know that having car insurance is important, but you may not know exactly what to look for when shopping for a policy. It can be difficult to understand the different types of coverage and what they all mean.

Fortunately, Allstate Insurance understands that getting car insurance can be daunting. That’s why they’ve created this helpful guide on choosing the right auto insurance plan for your needs and budget.

Read on to learn more about the different factors you should consider when purchasing an auto insurance policy and discover which type of policy is best-suited to your situation.

Which Type of Auto Insurance Should I Get?

There are many different types of car insurance policies, each offering a different level of protection. Here are a few of the most common types of policies you can choose from.

If you own a car or a truck, or if you lease a car, you will need to purchase car insurance. You can select from a variety of coverage types, but liability coverage and collision coverage are required.

Liability coverage is important as it will cover any other parties who are involved in your car accident. Collision coverage pays for damage to your car if you are at fault for an accident. Comprehensive coverage can be added to your policy if you plan on driving in a particularly high-risk area, such as a city or rural area where there is a higher risk of theft.

If you own a motorcycle, you will need to purchase motorcycle insurance. There are two types of coverage you can choose from. If you are a beginner, you will want to get underinsured motorist coverage. If you are a more experienced rider, you will want to get collision coverage.

How Much Coverage Do I Need?

You should always make sure you have enough car insurance coverage. The amount of coverage you need is generally dictated by the state you reside in and the value of the car you own.

If you lease a car, you will need to check with your leasing company to determine how much insurance coverage you should have. If you are financing a new car, you should also speak with your lender to determine what amount of insurance coverage you will be required to have in order to keep your loan current.

You can obtain a free auto insurance quote online to obtain a general idea of how much coverage will cost you.

What’s Required by Law?

Liability Coverage

In all states, you will be required to purchase a minimum amount of coverage for liability. This type of coverage protects others if you are at fault for an accident and does not provide any coverage for you.

Generally, the amount of liability coverage you need is the amount it would cost to repair or replace any damaged property, including medical bills and lost wages, that another person has incurred as a result of your car accident. This amount varies depending on where you live as some states require higher coverage amounts than others.

For example, if you live in New York City, you will need to purchase $50,000 worth of liability coverage. If you live in another state, such as Ohio, you would only need $25,000 worth of liability coverage.

Uninsured Motorist Coverage

In the event that the other driver involved in your car accident is at fault and does not have any insurance, or does not have enough insurance, you can make a claim against your uninsured motorist coverage. This will help cover any costs associated with the accident that you otherwise would not have been able to cover.

Uninsured motorist coverage is not required by law. However, it is a good idea to purchase it as many people drive with insufficient insurance coverage.

Which Types of Protection Allstate Insurance Are Offered?

1. Liability Coverage – This type of coverage protects others if you are at fault for an accident. It does not cover any damage done to your car or any of your injuries.
2. Collision Coverage – This type of coverage covers the damage to your car during an accident that is your fault. This coverage can also be used to cover the cost of towing and repair fees if your car is stolen.
3. Comprehensive Coverage – This type of coverage covers the cost of repairs to your car if it is damaged or stolen due to reasons other than a car accident.
4. Medical Payments Coverage – This type of coverage reimburses you for any medical bills that are a result of an accident.
5. Personal Injury Protection (PIP)

– This type of coverage covers the medical costs and lost wages associated with your injuries following a car accident.

Uninsured Motorist Coverage – This type of coverage covers the costs incurred from an accident when the other driver does not have any insurance.

Other Things to Consider

• Premiums – You can lower your premium by increasing your deductible, decreasing your frequency of driving or installing safety features such as automated braking or automatic emergency braking.
• Age – If you are under 25 years old, you may be required to pay a higher premium than an older driver would.
• Credit Score – Insurance companies take your credit score into consideration when determining how much you will pay for coverage.
• Driving Record – If you have a clean driving record, you could receive a discount on your policy.
• Vehicle Type – Some vehicles are riskier than others. As such, they are more expensive to insure.
• Geography – Where you live also plays a role in your insurance premiums.
• Other Policies – The type of other policies you have, such as homeowners or flood insurance, will also impact your car insurance.

Conclusion

Choosing the right car insurance policy is important as it is necessary to protect yourself in the case of an accident. It is important to understand the different types of coverage offered by car insurance policies before choosing a policy.

Having the correct amount of coverage is important as it allows you to protect yourself from costly expenses that may arise as a result of an accident.