Auto Insurance 101

​Choosing the right auto insurance for you is one of the best ways to decrease your insurance expenditures. You must understand what makes auto insurance and its premium higher or lower. 

It helps to know and understand what to look for before getting a policy in order to get the best value for your money. Here are some things you should know.

What is Auto Insurance? 
Auto insurance is an arrangement between you as the policyholder and the insurance company. The policyholder pays the premium, and the insurance company pays the losses written in the policy. 

Auto insurance provides liability, property, and medical coverage:

• Liability: This coverage pays for your legal responsibilities for bodily injuries or property damages. 
• Property: This coverage pays for damages to your vehicle and even theft. 
• Medical: This coverage pays for the costs of treating injuries, traumas, rehabilitation, and even lost wages and funeral costs. 

Most states in America require drivers to have Auto Liability insurance before they can legally drive their cars. All states have regulations that set the minimum amount of insurance that drivers have to shoulder the injuries or harm caused by negligence behind the wheel if an accident occurs. A basic policy consists of different types of coverage. 

Different Types of Auto Insurance 
Here are three scenarios basic auto insurance takes care of.

1. Bodily Injury Liability
   This type of coverage pertains to injuries that you or your family members listed on the policy caused to another person. These policyholders are also covered when they are driving other people's vehicles with permission.
   
   Motorists in serious accidents may be sued for massive amounts. Hence, drivers can choose to purchase more than the state-required premium to protect their assets like savings and homes.  
   
   
2. Personal Injury Protection (PIP)
   PIP coverage meets the expenses for treating injuries to the driver and the passengers of the policyholder's vehicle. Personal Injury Protection shoulders medical costs, lost wages, and funeral costs. 
   
   
3. Property Damage Liability 
   This type of coverage shoulders the damages the policyholder may have caused to a person's property. It usually covers damages to someone else's vehicle. However, it can also include injuries to telephone poles, fences, lamp posts, buildings, and other structures hit by accident. 

Conclusion 
Once you have decided what type of policies to include in your Auto insurance, it is vital to go with a company with your best interest in mind.  Car insurance does not just protect your car in the event of an accident. It also saves you from medical costs, financial liability, and legal ramifications. 

At American Eagle Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (225) 667-7377 or Click Here to request a free quote.