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Framing an Appropriate Auto Policy

Framing an appropriate auto policy is a major part of the annual process that we go through as drivers in trying to locate the best plans for us. Looking for a low price is obviously a main source of concern for all of us. But beyond price comes the question of how much or how little coverage to get, and what types of endorsements to include or leave off the plan.

Think about the different areas of coverage that are available and decide how you are going to build your plan. In many cases drivers tend to just renew or transfer their policies without considering the specific areas of coverage that are included. Sometimes we end up carrying coverages we don’t need, or miss out on areas we do need, as a result. Look at the basics of auto insurance and frame the perfect policy for your car and remember that new fuel efficient cars may have cheaper policies.

Liability Insurance

Liability is the basic foundation of auto insurance, required just about everywhere around the country. Liability provides protection for medical and property damage expenses that you cause to another driver’s car in an accident you cause. This is important to have because of financial responsibility auto insurance laws.

Collision and Comprehensive

Collision and comprehensive auto insurance protect the covered vehicle from property damage or from loss or destruction in the event of an accident, theft, fire, vandalism, or any other insurable event. These coverages are good up to the market value of the vehicle on the day of the accident, so their importance and value diminishes over time. Drop collision and comprehensive once a car is paid off and its value no longer justifies the premium.

Uninsured and Underinsured Motorist Protection

These are areas of coverage set aside for drivers who are struck by motorists with no liability insurance, or whose insurance is insufficient to cover all expenses. In some states these are mandatory according to law, but in many states they are only optional. Insurance companies cover claims of their policyholders, and then usually go after the other driver for reparations and refund their customer’s deductible if losses are recovered.

Medical Payments Coverage

This is an area of car insurance that provides some set dollar figure of insurance protection for medical costs directly related to injuries sustained in a car accident. Specifics on what is covered can vary by state, but usually include some provisions for rehabilitation, lost wages, and expenses of that nature. This is similar to personal injury protection (PIP) that is required in no fault states.

Towing and Roadside Assistance Coverage

These coverages are optional riders that some drivers choose to add to their policies. They have some value if they are needed, but consumers should be aware that this is often superfluous coverage. For instance, some credit cards and auto clubs extend these same benefits to their members automatically. Do your research and don’t waste money on duplicative coverage.

Framing an appropriate auto insurance plan is something that requires you to pay attention to each element of coverage and really examine it in light of your needs. Are there parts of your current policy that you actually don’t need? Or are there elements your plan is missing? Get the right combination of coverages and put together a plan that makes sense to you. Get free quotes on sensible car insurance by using our free quote form and examine the possibilities for affordable and extensive auto protection for your vehicle. Make sure that you and your family are covered by framing an appropriate auto policy, and give your car the most appropriate combination of auto insurance coverage.


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