- What is Car Insurance
- How Does Car Insurance Work
- Average Car Insurance Rates For Liability Only
- How Does Car Insurance Work When You Are At Fault
- Average Car Insurance Rates For Full Coverage
- How Does GAP Insurance Work if Car is Totaled
- How Does a Car Insurance Claim Work
- How Does Car Insurance Work With A Plus Insurance
- Additional Information
- INSURANCE SERVICES WE OFFER
What is Car Insurance
Car insurance is a type of financial protection that provides coverage for potential losses or damages associated with owning and operating a motor vehicle. It is a contract between an individual (the policyholder) and an insurance company. In exchange for the payment of a premium, the insurance company agrees to cover certain risks and liabilities related to the insured vehicle.
Almost all of the States across the United States of America will require individuals to have at least minimum amount of auto insurance required within the State they reside in. However, it is important to note that auto insurance regulations and requirements will vary by State.
When trying to obtain auto insurance, it is best to discuss with an agent about what your State will require you to hold. Although, if you want to find out yourself, you are able to go to your States specific webpage for auto insurance requirements. Do keep in mind that it is always encouraged to increase your liability limits of coverage due to the fact that many car accidents will be of a higher value than what the States require to hold.
Below will show examples of what clients may pay for their auto insurance when shopping through A Plus Insurance:
How Does Car Insurance Work
Car insurance is like a “safety net” for your vehicle.
So Exactly How Does Car Insurance Work?
When you get car insurance, you pay a certain amount of money, known as a premium, to an insurance company. In return, they agree to help you financially if something bad happens to your car.
If you have an accident or if your car gets damaged, the insurance company will pay for the repairs or even replace your car, depending on the coverage you have. This can save you a lot of money because car repairs can be expensive.
Car insurance also protects you if you cause damage to someone else’s car or if someone gets hurt because of an accident you caused. The insurance company will help pay for their medical bills or the repair costs for their car. This is called liability coverage, and it helps you avoid having to pay a huge amount of money out of your own pocket.
What Coverage Options Are Available For Car Insurance
It’s important to choose the right type and amount of coverage for your needs. Different insurance companies offer different options, so you can customize your policy based on what you want to protect and how much you can afford to pay.
The first main coverage that is typically found on every auto policy you will come across would be liability insurance.
Liability Insurance – This will protect you financially for expenses that occurred in an accident in which you caused. However, it will not pay for any damages that you encountered during the accident. It will pay for any damages done to the other party of the accident up to the limits you have set in place. Any remaining expenses in which exceed the liability limits in which you have, will need to be paid out of pocket.
Another coverage option that is often found would be full coverage insurance, which is not required by State, but may be required when financing or leasing a vehicle by the bank or dealership.
Full Coverage – This will cover cover any damages in which occurred to your vehicle regardless if you were at fault or not. It is made up of two components which are known as Comprehensive and Collison coverage. With full coverage there is a deductible that is set in place. The deductible must be paid first by the insured before the insurance coverage will kick in to fix the cost of damages.
To further explain how does car insurance work with other coverage options which may be required or optional for auto insurance will be listed below:
| Coverage | Explanation |
|---|---|
| Uninsured Motorist | This coverage helps pay for your medical expenses, vehicle repairs, or other damages that you sustain. It essentially steps in as if the uninsured driver had proper insurance coverage. |
| Underinsured Motorist | This coverage comes into play when the at-fault driver carries insurance, but their coverage is not sufficient to cover all your expenses. If the damages exceed the limits of the other driver’s liability coverage, your underinsured motorist coverage will help bridge the gap. |
| Medical Payments | Helps pay for medical bills resulting from injuries sustained in a car accident. This can include hospital stays, doctor visits, surgery, medication, and other necessary medical treatments. It can also cover expenses like X-rays, ambulance fees, and rehabilitation services. |
| Personal Injury Protection | This coverage is similar to Medical Payments, however, the coverage is broader and will only be offered in states that require it such as Florida. |
How Does Car Insurance Work For Premiums Being Calculated
You are not alone if you wonder how does car insurance work when calculating your auto premium. To help answer this question, there are many factors that go into an insurance carrier determining your rate.
| Determining Factors |
|---|
| Age |
| Gender |
| Location (City and State) |
| Driving History / Record |
| Traffic Violations |
| Credit Score |
| Vehicle Year / Make / Model |
If you find that your rate seems to be higher than anticipated, you can discuss with your agent about how does car insurance work to lower your premium cost. Your agent will be able to search for discounts that you may be eligible for!
A few other ways to see about getting a lower premium would include:
- Bundling Your Policies
- Continue Safe Driving Habits
- Shopping Around Multiple Insurance Carriers
If you want to save some time, you can always contact an insurance brokerage like A Plus Insurance, to get a free quote amongst multiple insurance carriers at once!
Average Car Insurance Rates For Liability Only
How Does Car Insurance Work For The Price of Liability Only Coverage?
Liability coverage is the most basic form of auto insurance coverage. It will only cover the expenses in damages that were caused to the other party within an accident that you caused. Liability coverage will protect you financially to pay for the other parties damages but will not cover any damage that occurred to you or your vehicle.
Typically, liability only auto policies will be cheaper than other auto policies which have additional coverages added onto them. However, due to each policy being individualized, one persons liability only policy will differ from the others.
Below is a chart of the average cost of liability insurance amongst the carriers:
| Carrier | Average Cost |
|---|---|
| The General | $86 |
| Geico | $90 |
| National General | $92 |
| Progressive Insurance | $94 |
| Mendota Ins. Company | $97 |
| Dairyland | $99 |
| Acceptance RTR | $102 |
| AssuranceAmerica | $102 |
| USAA | $105 |
| Liberty Mutual | $121 |
| GAINSCO | $126 |
| 21st Century | $128 |
| Farmers | $128 |
| State Auto | $129 |
| Bristol West | $136 |
*Do Keep In Mind That These Rates May Vary and Are Subject to Change*
Get a free quote for liability insurance at A Plus Insurance and safeguard your vehicle from unexpected risks. Our knowledgeable team is ready to assist you in finding the perfect coverage tailored to your specific needs.
How Does Car Insurance Work When You Are At Fault
It’s important to review the specific terms and conditions of your policy and consult with your insurance provider for detailed information about how does car insurance work with your policy when you are at fault.
If you do find yourself in an at fault accident, you will need to contact your insurance provider. From there, they will direct you on the following steps to take after the incident to help further assist you.
How Does Car Insurance Work When You Are At Fault With Liability Only Insurance?
In this scenario, your liability insurance will only cover the other party involved in the accident. It will cover up to the limits that you have set on your policy for Bodily Injury and Property Damage, and any expenses in which exceed those limits set on the policy will be need to be paid out of pocket.
How Does Car Insurance Work When You Are At Fault With Full Coverage Insurance?
In the event of an at fault accident that occurred while you were carrying full coverage insurance, your vehicle damages would be covered. Although liability insurance would still take care of the other party involved, with full coverage you would be covered as well. Full Coverage will only pay for vehicle damages and no medical expenses. In order for Full Coverage insurance to go into effect, the deductible set on the policy must be paid first.
Average Car Insurance Rates For Full Coverage
How Does Car Insurance Work For The Price of Full Coverage?
Full Coverage insurance is a level above just basic liability insurance. It includes liability insurance along with Comprehensive and Collision coverage which will cover any damages that occurred to the vehicle regardless of who was at fault. Your set deductible will need to be paid first before the Full Coverage insurance will go into effect.
| Coverage | Explanation |
|---|---|
| Comprehensive | Covers damages from external factors such as fire, tree branch falling, theft, etc. |
| Collision | Covers damages from colliding with another vehicle or object whether parked or actively moving |
Below is a chart of the average cost of full coverage insurance amongst the carriers:
| Carrier | Average Cost |
|---|---|
| National General | $130 |
| Bristol West | $139 |
| Allstate | $149 |
| USAA | $154 |
| Liberty Mutual | $156 |
| AssuranceAmerica | $157 |
| Progressive Insurance | $157 |
| Farmers | $163 |
| GAINSCO | $163 |
| State Farm | $169 |
| Travelers | $169 |
| 21st Century | $174 |
| Acceptance RTR | $176 |
| Geico | $177 |
| American Family | $178 |
*Do Keep In Mind That These Rates May Vary and Are Subject to Change*
Get a free quote for full coverage insurance at A Plus Insurance and safeguard your vehicle from unexpected risks. Our knowledgeable team is ready to assist you in finding the perfect coverage tailored to your specific needs.
How Does GAP Insurance Work if Car is Totaled
What Is GAP Insurance?
GAP insurance, also known as Guaranteed Auto Protection insurance, is a type of insurance coverage that helps protect car owners financially in the event of a total loss or theft of their vehicle. It covers the “gap” between the Actual Cash Value (ACV) of the car and the amount owed on the car loan or lease.
Exactly How Does GAP Insurance Work if Car is Totaled?
Here’s how GAP insurance typically works when a car is totaled:
- Determining the actual cash value: When the insurance company declares your car a total loss, they will assess its actual cash value. This is usually determined by considering factors such as the car’s age, mileage, condition, and market value.
- Primary insurance payout: Your primary auto insurance policy will typically pay you the actual cash value of the vehicle. This amount is based on the insurance company’s assessment and may not cover the full outstanding balance on your car loan or lease.
- GAP insurance coverage: GAP insurance steps in to cover the remaining balance or “gap” between the actual cash value of your vehicle and the amount you still owe on your loan or lease. It helps you avoid having to pay out of pocket for the difference.
- Claims process: To initiate a GAP insurance claim, you’ll need to contact your GAP insurance provider and provide them with the necessary documentation, such as the total loss letter from your primary insurance company. The GAP insurance provider will review the claim and may require additional documentation or information.
- Payment settlement: Once your claim is approved, the GAP insurance provider will typically pay the difference between the actual cash value and the outstanding loan or lease balance directly to your lender or leasing company. In some cases, they may issue the payment to you, and you’ll be responsible for forwarding it to the lender.
It’s important to note that the specific details of how GAP insurance works can vary depending on the policy and the insurance provider. It’s recommended to carefully review the terms and conditions of your GAP insurance policy to understand the coverage and any limitations or exclusions.
How Does a Car Insurance Claim Work
After being involved within an accident, it is important to contact your insurance carrier’s claim department as soon as possible after calling the police and medical services.
Once you have reached your insurance carrier’s claims department, they will help further guide you on which steps are needed to be taken. They will assign you with a claims adjuster, who will look over the damages and then decide the amount that the insurer is committed to pay you under your policy.
Some Steps That You Could Take To Simplify The Process Would Include:
- Contacting your insurance company and explain what occurred, along with your policy coverages and limits, and deadlines for filing your claim.
- Finding out which documents that your insurance carrier will need, including but not limited to: a police report, pictures of any damage that happened, the names of the people involved, along with their information as well.
- Remembering important dates for deadlines.
- Creating a folder to keep track of all your insurance claim documents.
How Does Car Insurance Work With A Plus Insurance
Here At A Plus Insurance We Treat You Like Family Because You Are!
A Plus Insurance is a family based company that was created to help others find cheap competitive rates amongst a variety insurance carriers. Since we are an insurance brokerage, we can shop between all the carriers for you so you do not have to deal with the hassle of calling multiple places. We make shopping for insurance quick, easy, stress-free, and a comforting experience.
Feel free to contact A Plus Insurance for any needs you may have. Whether its a quote you are needing, questions you may have, etc. we are always here to help and ready to assist you.
Additional Information
Now that we have gone over how does car insurance work and all the aspects that also go into it. We have listed additional sources that you are able to look over in order to get more insight in other areas of car insurance.
| Additional Insurance Links |
|---|
| Minimum Car Insurance Requirements By State |
| Best Car Insurance Discount |
| Car Insurance For New Drivers |
| Our Insurance Carrier Contacts |
INSURANCE SERVICES WE OFFER
Homeowners Insurance
Homeowners, renters, and mobile home owners: make sure you have the protection you need.
