What You Need to Know About Auto Insurance

Auto Equine Insurance offers great customer service and competitive prices. They’ll work with you to get the coverage that works for your budget and driving habits.Auto Insurance

A personal auto insurance policy provides financial protection if you are responsible for an accident that damages or destroys your vehicle. It will not cover you or others for bodily injuries or property damage caused by someone else, however, some policies do offer supplemental coverage in this area (at additional cost). In general, two factors determine what you pay for auto insurance: underwriting and rating. Underwriting involves assessing an applicant’s risk and deciding whether or not to issue a policy, while rating assigns a price based on the insurer’s estimate of how much it will cost to assume responsibility for the insured’s potential claim.

There are several types of auto insurance, including:

Liability coverage pays for the injured parties in an at-fault accident up to a specified limit. This includes bodily injury liability and property damage liability. It will also typically include uninsured motorist property damage coverage and medical payments coverage.

Other popular options are collision and comprehensive. Collision covers repairs for your vehicle if it is involved in an accident with another car or stationary object, regardless of who is at fault. It can also cover damage from hail, falling tree limbs and collision with animals. Wallet Hub reports that collision is not typically state-mandated, but that your financing or leasing company may require it. Comprehensive coverage is similar to collision, but it will also help you repair your vehicle if it was damaged by vandalism, theft, weather events and other non-accidental reasons.

A supplemental form of coverage is accidental death and dismemberment (AD&D). This will pay out up to a specified amount for your family members or other passengers in your vehicle in the event that they are killed or seriously injured by an uninsured driver or hit-and-run driver. This type of coverage is not required in most states, but it is available at an additional cost from most auto insurers. In most cases, the supplemental AD&D coverage will pay out in addition to any other coverages you have in place.


The deductible is an amount you agree to pay out of pocket before your insurance policy kicks in. It applies to your collision and comprehensive coverage, which pays to repair or replace the car if it is damaged by an accident you cause or by damage from natural events such as hail or floods. Deductibles don’t apply to liability coverage, which pays for damages to other people caused by an accident you cause.

Your auto insurance company will typically offer you a choice of deductible amounts when you sign up for the policy. You can then select the option that works best for you. Generally, a higher deductible will result in lower premiums and vice versa.

A deductible is meant to act as a disincentive for drivers who file frivolous claims, and it usually works as intended. By making the deductible higher, the insurer can be sure that claimants are not filing unnecessary claims and are genuinely in need of financial assistance. The amount of the deductible can vary, however, and the exact cost will depend on your insurance provider, state, and your specific policy.

The deductible you choose should be based on your individual finances and risk assessment. For example, if you’re unlikely to file a claim and the damage to your vehicle will be less than your deductible amount, it may not make sense to raise the deductible. On the other hand, if you have the money saved to cover your deductible and don’t mind paying a little more each year in return for a lower premium, you might want to consider a high deductible.

Some insurance companies also offer a vanishing deductible feature, which reduces the deductible you are required to pay each year that you don’t file a claim. This could save you a significant amount of money over time. Ask your agent if your insurer offers this option and what the details are.

Filing a claim

Unless you’re in a no-fault state, most auto policies require drivers to file a claim for bodily injury or property damage resulting from an accident. Some insurers have checklists for what to do after an accident, and you can often find one on your insurance company’s website or in their mobile app. In addition to contacting your insurer and the other driver(s), you should gather information such as police reports, photographs of the scene, contact details for anyone who witnessed the incident, and the amount of damage to each vehicle.

It’s also a good idea to check your policy for the types of coverages you have and how to file claims. Bodily injury covers medical expenses for the other person if you’re at fault, while property damage covers any damages that you cause to someone else’s vehicle or belongings. Comprehensive insurance usually covers damages from non-accident related events, such as theft, vandalism, or a tree falling on your car.

Filing a claim starts with a call to your provider, which is usually the easiest way to go if you’re already familiar with your insurer. You may need to provide a lot of information, such as the date and time of the incident, your policy number, the name and address of the insured, the vehicle description and a list of all injuries or damage.

If you’re in an accident, it’s a good idea to exchange contact and insurance information with the other driver(s). It’s also a good idea to take photos of the crash or damage with your smartphone. This is especially important if the other driver says that it’s not their fault.

The other driver’s insurance adjuster may ask you for a recorded statement. While it is your legal right to refuse a recorded statement, you should not be pressured into giving one. An insurance adjuster might try to corner you into admitting fault or diminishing the severity of your injuries, and you should always speak with an attorney before agreeing to any recorded statements. If you’re not satisfied with the results of your auto insurance claim, you can appeal any decisions or report the insurance company to your state’s insurance regulator.

Claims process

Once the insurance company receives your claim, it will assign an adjuster to help you through the process. The adjuster will interview you and other parties involved in the accident, visit the accident site and inspect your car. They will also review medical records and bills, wage loss receipts and other documentation related to the accident. They may even check your social media accounts if they believe it could provide additional information that will help their investigation.

Your adjuster will then evaluate the damage to your vehicle and determine the amount of coverage you are entitled to. If they decide to deny your claim, you have the right to ask them to explain their decision. It is important to remember that the longer you wait to file a claim, the more difficult it may be for the insurance company to investigate your case and determine who is at fault. In addition, some states have statutes of limitations for claims involving injuries.

An auto insurance policy has several types of coverage including liability for bodily injury and property damage, medical payments, uninsured motorist and comprehensive. Other types of coverage available are collision and rental reimbursement.

The premium charged for an automobile insurance policy is determined by the type of coverage selected and the driver’s record, occupation and annual mileage. Other factors that influence a person’s ability to obtain insurance include driving history, credit report and the vehicle being driven.

An insurance policy is a legal contract between the insurer and the insured, whereby the insurer agrees to pay for certain losses covered by the policy in exchange for the payment of a premium. The policy contains the terms of the agreement, such as coverage limits and deductibles. The policy number, policy owner name and mailing address are listed on the Declarations Page, along with the effective dates of the policy, agent’s name, listing of insured vehicles (including the vehicle identification numbers), lien holders (if any) and rating information. The terms of the policy can be changed by an endorsement. The insurer can cancel the policy if the insured fails to make a payment.

Margaret Wallace