Enter Your ZIP Code

Auto Owners Insurance – The Basics


Auto owners insurance can involve a lot of numbers and paperwork.  For this reason alone, it is not surprising to see car owners getting confused about the proper way to get car insurance.  There are a lot of provisions and definitions that you have to learn and understand, and because of this, many new car owners get intimidated and just sign at the dotted line without thoroughly studying everything.

That would be their first and biggest mistake.  Many people who apply for auto owners insurance get unpleasant surprises later on when they start receiving their bills in the mail.  All because they did not understand what exactly they are signing up for.  Of course, it would be simpler just to take what the insurance company offers, but studying what you are buying can save you a lot of money and headaches in the end.

Car insurance is required in all states in the U.S., and with good reason.  Car owners need financial protection against damages just in case they get involved in a vehicular accident.  Some people did not see the need for auto insurance until it was too late.  They found out that paying for the expenses was not so easy after all, especially when they were in jail or had no money in their wallets.

The most common type of auto owners insurance is the body injury liability.  This type of insurance will provide coverage for injuries or deaths that are related to a car accident that you caused.  It would also be helpful to learn the limits of your coverage.  For example, if you see “100/300” in your policy, that would mean $100,000 per person for injury, and $300,000 per accident.

Another type of car insurance is property damage coverage.  This coverage will pay for any property damage (including other cars) that you caused during an automobile accident.  The amounts involved in these types of insurance will range from $5,000 to as much as $1 million in coverage.

You can also get total and collision coverage for your car.  Collision coverage will pay for the expenses you incur when repairing your car.  This includes accidents that do not involve other vehicles, such as driving into a tree.  For total coverage, you will be insured against damages that are not directly related to an accident.  It is recommended that you study your policy carefully, because some insurance companies automatically include total and collision coverage, unless you specifically request otherwise.

Knowing more about auto owners insurance will save you a lot of money, and you will thank yourself later for taking the time to study and understand all about it.