Car Insurance for Dummies: A Step-By-Step Guide to Choose Auto Insurance

According to the U.S. Department of Transportation, the average car owner drives 16,550 miles a year. If you want to keep your body, your money, and your car safe, you’ll need the right car insurance policy.

If you’ve never had to pick out an insurance policy on your own, no worries! We’ve created this guide, car insurance for dummies, to help newbies just like you. We’ll go over what information you need for quotes, as well as how each coverage works.

When you’re done reading this article, you’ll be ready to start shopping policies today. So go ahead and take a look!

Car Insurance for Dummies

Before we dive into our guide, let’s look at how you can prepare to get quotes.

First, you’ll need to have your driver’s license with your current address on it. Insurance companies will want to verify your residential address, as well as check your driving history.

Get Vehicle Information

Next, you’ll need to know your car’s year make and model to get accurate quotes. Once you have that information, write down your vehicle identification number or VIN. You can find your VIN on your vehicle’s title and registration.

Gather Current Policy Papers

If you already have an insurance policy, or you’re listed on someone else’s, you can find the VIN on the policy papers. Plus, you’ll need your current policy papers to prove you already have coverage to get the best insurance quotes.

If you don’t have any car insurance coverage, no worries. While it can be difficult to get car insurance without previous coverage, or gaps in coverage, it isn’t impossible. You’ll likely just have to pay a higher rate.

Best Full Coverage Car Insurance

Full coverage auto insurance means something different to everyone. For a lot of people, full coverage means they want their car to have protection against anything that could happen. However, to have true full coverage, you’ll also need coverages that protect your body and your money, not just your car.

Here are the different car insurance coverages:

  • Medical payment
  • Personal injury protection
  • Liability
  • Uninsured motorist
  • Collision
  • Comprehensive

To have true full coverage, you’ll want to have all of the coverages above.

Coverages That Protect Your Body

When you’re thinking about car insurance coverage’s it’s helpful to remember 3 phrases. My body, my money, and my car. Every coverage is in place to help protect one of those 3 things.

Medical Coverage

Medical coverage will provide funds to help you and your passengers if you sustain injuries. Hospital visits, X-rays, and other medical-related costs will fall under medical coverage. Your medical coverage will also apply if someone you’ve given permission is driving the insured vehicle.

Personal Injury Protection

Not every state will offer personal injury protection or PIP. Whenever PIP is available it’s a good idea to include it within your policy. No matter who’s at fault in the accident, you can rely on PIP to help save the day.

In addition to covering medical expenses, PIP also offers more broad coverages that relate to your injuries. For instance, let’s say you got hurt in a car accident and couldn’t mow your lawn. PIP would help cover the cost of hiring someone to mow your lawn for you.

Uninsured and Underinsured Motorist Coverage

Never pass up on an opportunity to get uninsured motorist coverage. If someone hurts you and they don’t have any car insurance, or they have low limits, this coverage will save the day. Depending on the state you live in the coverage will help cover medical costs, vehicle damage, or both.

Coverages That Protect Your Money

Earlier we mentioned to think of your insurance coverages as covering; my body, my money, and my mind. Medical and PIP coverages provide support for your body. However, what coverages will protect your money?

Liability Coverage

If you are at fault in a car accident, liability coverage will protect you financially. Instead of going after your assets, the injured party will be able to use the liability funds to cover their costs.

Bodily Injury Liability

If you hurt someone else in a car accident, your bodily injury liability will help cover their medical costs. The liability coverages can also help cover costs related to the injuries.

Property Damage Liability

The property damage liability is what will help cover the costs of repairing the other driver’s vehicle. If the damage you cause exceeds your liability limits, you could be looking at legal consequences.

Coverages That Protect Your Car

Moving on, keep thinking of your insurance coverages as covering; my body, my money, and my car. Now you know the coverages that will pay for your medical bills, and you also know how liability coverage protects your money. Finally, you’re ready to learn about what coverages will protect your car.

Comprehensive Coverage

If a tree falls on your car it’s going to be comprehensive coverage. Of course, we hope a tree never falls in your car, but insurance is all about preparing for the worst right? Along with storm damage, comprehensive coverage may also help take care of damages from theft or vandalism.

Collision Coverage

If you drive your car into a tree, it’s going to be collision coverage. Hopefully, you never experience this, but if you do, your collision coverage will be there to save the day. Although, you’ll need good deductibles for the coverage to benefit you the most.

Pick Low Deductibles

After choosing coverage limits, you’ll have to pick a comprehensive and collision deductible. The deductible is the amount of money you’ll have to pay to activate the insurance coverages.

Always ask the insurance agent to provide you with a quote using the lowest deductible possible. If the price works within your budget, we suggest you always get the lowest deductible possible. If the worst does happen, you’ll be happy you only have to pay a little bit out of pocket.

Drive With Peace of Mind

Congrats on finishing our car insurance for dummies guide! Now you can finally start the process of getting a car insurance policy that’s right for you.

Before you know it, you’ll be starting a policy that can give you the peace of mind you deserve. For more ways to put your mind at ease, check out the rest of this site!