Let’s face it, sometimes car insurance is confusing. We know we need it, but we don’t always know what it covers. Do I have enough coverage? Who is allowed to drive my car? What happens if I need to file a claim? These are common questions drivers have, so we’ve created this post to help clear the air on auto insurance
1. How Much Car Insurance Do I Need?
At the most basic level, you need enough vehicle liability insurance to meet the minimum requirement of the state you live in. Liability insurance covers damage you cause to people or property when you’re in a car accident. It helps cover any financial responsibility you have for damage or injury to others.
In the state of Ohio, at the date of this blog post, the minimum requirements are:
- $25,000 – bodily injury liability per person
- $50,000 – bodily injury liability per accident
- $25,000 – property liability per accident
While the state minimum is required, ideally you should look at upping your coverage for better overall financial protection in the case of an accident (lawsuits and medical bills can be expensive)! Some additional factors to consider when contemplating coverage levels are:
- The value of your vehicle
- How often you drive
- How much your assets are worth (home, property, etc.)
- Do you have a car loan or lease
We recommend adding collision and comprehensive insurance to your policy because it covers damage to your own vehicle. Even better, consider an umbrella policy which adds an additional layer of protection across the board. We’ve linked to our blog posts about these topics above, so you can explore them in depth.
2. What Factors Affect My Car Insurance Premium?
There are a few key factors insurance companies use to measure the level of risk they take when offering you car insurance. The more likely you are to make a claim, the higher your premiums will be. Insurance companies consider:
- Your age – young drivers and elderly drivers usually have higher premiums. Those in their middle age tend to have better rates.
- Driving and claims history – the more tickets and claims you’ve had, the more risky you are to insure. Your driving history is a big indicator of whether you’re a safe driver, thus safer to insure.
- Credit score – statistics have shown that people with a lower credit score file more claims and more expensive claims. Keep that credit score up if you want a better premium.
- Location – if you live in a zip code with higher crime rates or bad weather, you’ll pay more because it’s more likely damage or theft will occur to your vehicle.
3. What Happens If Someone Drives My Car and Gets in an Accident?
Most car insurance policies cover people driving your car whom you gave permission to use the vehicle. Here are a few caveats to consider:
- Some policies don’t cover your relatives living with you UNLESS they are named in the policy
- Your policy may provide coverage to unnamed drivers, but it could be for a lesser amount
- Most likely your coverage won’t cover anyone using your vehicle for commercial or ride sharing purposes
We recommend you review the fine print of your policy with your agent so you understand the exact terms of your agreement and avoid any surprises.
4. Do I need Uninsured/Underinsured Motorist Coverage?
Not all states require uninsured or underinsured motorist coverage, but it’s an important coverage to include in your auto insurance policy. You can’t control someone causing an accident, and you can’t guarantee they have the proper insurance to cover the costs of an accident.
This is when uninsured or underinsured motorist coverage steps in to cover your medical costs. This applies to your passengers’ medical costs too. Depending on your policy, it may also cover the repair costs of your vehicle caused by the at fault driver.
5. How do I file an auto insurance claim?
We hope you never need to file an insurance claim, but life happens, and this is why you invest in auto insurance to begin with! Each insurance agency will have a slightly different way they manage claims, but generally speaking, to file an auto claim you should:
- Report the accident straight away to your insurance company. You can normally find the number on your insurance card or online.
- Gather the information to support your claim: accident details like date, time, location, damage, injuries incurred, the other driver’s insurance details, police report, medical bills, photos of the damage, witness statements, etc. The more information you can gather, the better!
- Complete any claims paperwork required by your insurance company. Be sure to keep your records in order and have your claim number to hand. Make sure you take this step seriously and complete it promptly. Some companies require you to file a claim within a certain amount of time.
- Find out if your policy includes a rental car. This is going to be especially helpful if your vehicle will be off the road for a while.
Car Insurance with Ianniello Agency
We hope this article gave you a better understanding of car insurance, but we’re here to help if you have more questions! Whether you need vehicle insurance for your car, truck, RV, ATV, golf cart, or fifth wheel, we’ve got you covered. Find out more about our auto insurance offerings today, request a quote, or contact us to start the process.
