Car insurance may not be a hot topic when it’s time to meet up with friends on a Friday night, but it’s a part of life for responsible drivers. Auto insurance can also be confusing since there are so many policies to choose from and new terms to learn. Nevertheless, it’s required in all states except for New Hampshire, and when an accident happens, you’ll be glad you prepared for the unexpected.
As the Insurance Information Institute states, car insurance is a “contract between you and the insurance company that protects you against financial loss in the event of an accident or theft.” When you have car insurance, you pay the insurance company a certain amount, called a premium, and they pay for costs like medical bills and car repairs if you get an accident. How much your insurance company will pay depends on your policy. An insurance agent can work with you to determine the right plan for your unique needs.
Unless you have enough funds to self-insure, you need car insurance if you own a vehicle and live in any state other than New Hampshire. However, New Hampshire requires drivers to cover injuries and damages if they cause an accident. For this reason, many New Hampshire drivers choose to carry car insurance even though it’s not required.
Even if car insurance wasn’t a legal requirement, it’s still worth having. If you get into an accident and do not have car insurance, you might need to pay thousands of dollars to cover medical expenses and car repair or replacement costs for yourself or the other party. For example, consider that the average liability claim was $15,785 for bodily injury and $3,841 for property damage in 2018. In this case, you might expect to pay nearly $20,000 out of pocket if you don’t have insurance.
You really only need to know the auto insurance basics to ensure you get the right policy. This guide will cover the fundamentals and answer some questions you might have. We’ll cover topics such as:
At David Pope Insurance Services, LLC, we understand car insurance options can seem overwhelming, but we are here to answer all of your questions and help you make an affordable choice with the coverage you need. Please reach out to us if you need assistance or want to learn more about car insurance plans in Missouri, Kansas, Arkansas or Iowa.