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Car Insurance: Affordable, Convenient, Full-Coverage
If you’re thinking of buying a car, or if you already have one, then you should know that auto insurance is one of the most important things to have as an owner. It’s a legal requirement in 49 states, and it offers much-needed financial protection in case you get into an accident.
However, as essential as car insurance is, we understand that it can be quite confusing, as well.
Here at Magnum Insurance, our goal is to make this important financial tool more accessible to people from all walks of life. That’s why in this guide, we’ll tell you everything you need to know about car insurance, why you need it, and what your different options are.
What Is Car Insurance?
Car insurance or auto insurance is a type of insurance designed to protect you financially in case you get into a vehicular accident.
Many Americans spend a big part of their days on the road, which alone raises the probability of incidents occurring. Add to that the existence of various factors, such as extreme weather conditions, drunk or reckless drivers, car failures — and you’re practically always in peril.
That’s where auto insurance comes in. You only have to pay your insurance provider a little bit every month, and they, in turn, give you financial coverage if you get into an emergency.
How Does Car Insurance Work?
Just like any other type of insurance, getting auto insurance means regularly paying small amounts to your insurance provider. In return, if you ever get into an incident that qualifies under your coverage, the provider shoulders most, if not all, of the financial burden.
Nowadays, there’s an abundance of insurance products in the market, so it could be difficult to navigate between all of their complex differences.
Remember, the cost of your monthly premiums will depend on your insurance provider and your specific coverage. Similarly, qualified incidents and benefits are based on that, as well. That’s why it’s very important to do your due diligence when choosing your provider.
Magnum Insurance makes it easier for you to access the specific coverage you need, at the premium you can afford, and with the utmost customer care throughout.
In other words, Magnum Insurance is the perfect bridge between the complex insurance industry and the average consumer who just wants to save time and money when getting the best car insurance for them.
Why Do You Need Car Insurance?
If you spend a large time on the road, having a good car insurance plan will set your mind at ease. Accidents are undoubtedly chaotic and scary. Being financially protected means there’s one less thing to worry about should something go wrong.
Getting good auto insurance also makes sense economically. Car accidents can be costly, especially if it entails repairing major damages to your vehicle or shouldering thousands of dollars in medical expenses.
Fortunately, the right insurance plan can help you cover whatever incidents you might face. Here at Magnum Insurance, we make it much easier for you to pick one based on your specific needs.
What Does Car Insurance Cover?
As mentioned above, how much you pay for your car insurance depends on several factors, such as your provider and your coverage. These factors are largely dependent on your specific needs and worries as a driver.
Understanding the full breadth of insurance coverages can be difficult, but we can begin by understanding what typical car insurance doesn’t cover in the first place.
Traditional car insurance doesn’t cover:
- Regular maintenance and repairs: Insurance companies are not responsible for your car’s regular maintenance and repair expenses.
- Ridesharing industry: If you drive for ridesharing companies such as Lyft or Uber, you’re going to need a separate policy from the traditional car insurance.
- Individuals not in your policy: If a person other than you is driving your car during the accident in question, that person normally wouldn’t be covered by your insurance. However, make sure to check your specific policy, as some allow special permissions for such cases. For instance, there are policies that allow friends and family, including your teenage children, as you live in one place.
See more on Teenager Car Insurance
- Very high-value cars: Cars with a very high market price, like exotic, sports, or performance vehicles, are typically not covered by regular car insurance. You’ll need another kind of policy specific for high-value cars.
- Personal belongings: Anything else other than the car itself won’t be covered by car insurance. For example, if a thief broke your window and stole personal belongings inside your vehicle, the car window will usually be covered, but not what was stolen.
Now that we know what auto insurance doesn’t cover, it’s much easier to discuss what they do cover, especially in case you get into a car accident.
See more in what to do in case get into a car accident
Specific car insurance coverage is often subdivided into particular insurance products that become part of your premium. However, it can be generally divided into three groups:
- Liability: Liability refers to any damage that you might cause while you’re driving your insured car. This type of coverage can include damage to property, damage to another vehicle, or injury to another person.
- Personal injury: You can get compensated for any lost wages or medical bills that resulted from your accident. Depending on your policy, this can also include other people as long as they’re in the contract.
- Collision: If your car was damaged due to collision events, such as vehicular accidents, damage from man-made structures, or clashes with other obstacles, collision coverage would help you pay for repair or replacement.
These categories are further subdivided into specific insurance products, which we will discuss in the next section.
Types of Car Insurance
Beyond those three general categories, there are more specific car insurance products that you should be aware of.
Coverages That Protect Your Wallet
Liability Coverage
As mentioned previously, liability coverage is one of the most general insurance policies around. It’s usually further divided into two, bodily injury liability and property damage liability.
With this, you won’t have to pay out of pocket for damages and injuries that you are liable for in a car accident. That’s why liability coverage, at the very least, is a legal requirement in most US states like Illinois and Indiana.
Uninsured Motorist Insurance
Usually, the other party’s insurance provider will pay you their liability coverage should you be involved in an accident deemed to be their responsibility.
However, if that person doesn’t have an insurance policy, you won’t get anything unless you file a lawsuit. To address that problem, an uninsured motorist insurance plan will make sure you still receive some form of monetary compensation even if the other party is uninsured.
Underinsured Motorist Insurance
In case the other party has an insurance policy, but it’s not enough to cover the damages, underinsured motorist insurance will ensure that you get the total cost needed for your repairs or bills.
Gap Insurance
Gap insurance exists for drivers who are worried that the compensation they will get from their provider will not be enough to cover the full cost of their financed car. In case your vehicle is stolen or totaled in an accident, this policy will cover the amount that you still owe on your auto loan.
Classic Car Insurance
This is a specialized type of auto insurance made for vintage or classic cars with high market value. These vehicles often have special needs that traditional car insurance won’t cover.
Coverages That Protect Your Car
Collision Insurance
Also mentioned previously, this type of coverage insures you against damages from collision incidents, whether it be with another vehicle, a roadside obstacle, or other things such as potholes.
Comprehensive Insurance
True to its name, this type of insurance covers many instances, from the most common ones like collisions and injuries to those that don’t involve another vehicle like weather-related incidents, accidents involving animals, or even vandalism. You can combine this with collision insurance in order to form what is often called “full coverage” insurance.
Emergency Roadside Assistance Insurance
This type of insurance is often an extension to comprehensive insurance coverage. It insures you against costs incurred in case you need your car towed for emergency reasons.
Rental Reimbursement Insurance
It can be difficult to get around after car incidents, especially if your car was totaled or stolen. This coverage reimburses you for the costs of renting another vehicle.
Coverages That Protect You
Medical Payments Coverage
Medical payments coverage insures you against the costs of treating injuries that resulted from a car-related encounter, regardless of which party is at fault for the incident.
Personal Injury Protection Insurance
This coverage has some similarities with the previous one because it also covers some, if not all, of the costs of your medical expenses. However, unlike the other one, this also covers any loss of income that might result from your accident.
Car Insurance Made for You
The intricacies of insurance coverages and how they affect your premiums can be difficult to navigate. If you shop for insurance haphazardly, you will most likely be charged for things you don’t need and miss out on more cost-effective opportunities.
Magnum Insurance makes auto insurance easier to understand and more accessible. Getting your insurance from us means that we will fully support you in every step of the process in getting the best insurance coverage at the lowest premiums possible.
Call us today at 1-888-539-2102 and get a free quote now!
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