Guide to Online Auto Insurance: Terms, Coverage

To find the perfect policy, there’s a lot you first must learn. Mastering auto insurance would take a long time, but even learning the basics will give you a big advantage when dealing with insurance companies. Use this page as reference to find confidence and the expertise to decide if what you’re getting is worth what you’re paying.

TERMINOLOGY

Coverage – When and how much an insurer will pay for damages or injuries involving your vehicle. This will specify whose injuries and damages are covered and to what dollar amount maximum.

Deductible – The amount of money you pay yourself when you file a claim. If you want your insurer to pay for something, you will have to pay the deductible.

Policy – The total listing of the agreement you make with a provider. This is a detailed account of services and money to be exchanged, as per your contract.

Premium – What you pay regularly to retain your auto insurance. Payments recur each billing period, which is usually monthly, biannually, or annually. If you do not pay it, you will not have coverage.

COVERAGE TYPES

Liability – When the driver of your insured vehicle is found to be at fault for damage, injuries, or death to another party in a driving collision, this coverage kicks in. It pays for the other party’s claim as well as providing a legal defense if you should be sued. There is a maximum amount of coverage.

Collision – Pays for damages to your own vehicle that result from collisions and traffic accidents. Claims will be paid up to the coverage limit, regardless of fault.

Other vehicles not on your auto insurance policy are not covered.

You should purchase up to the blue book price of your vehicle in Collision coverage.

Comprehensive – Pays for damages to your vehicle resulting from non-driving incidents. This includes damage from weather, natural disasters, wildlife, hit-and-runs, crime, and more. Theft is also covered by Comprehensive packages.

Medical Payments – For injuries to the driver and passengers of an insured vehicle, Medical Payments coverage will provide financial assistance for medical treatment. There will be a coverage level per person and total that states the maximum the insurer will pay. Funeral costs are also often covered here.

Uninsured/Underinsured Motorist – If the party responsible for the collision does not have the coverage required to compensate you for damages and injuries, this coverage will. Nearly half of drivers in the US have no insurance or too little.

Multi Online Auto Insurance for Huge Discounts

If you’re not taking advantage of every discount you can, you are not saving enough on your auto insurance. Sometimes the policy itself can be the discount. Multi auto insurance for instance!

When you insure more than one vehicle on the same policy, you get what is called a Multiple Vehicle Discount. This is one of the largest discounts out there! How big? Try 10-20%!!!

WHY GET A MULTIPLE VEHICLE DISCOUNT?

Saving 10% might not seem like a lot of money, but it is. If you pay $1,000 a year in premiums, that’s $100 in savings. Over ten years, that’s $1,000 you could be using to pay off debt and improve your credit, improve your home, or even buy extra safety features for your vehicle that will get you even bigger savings! Compound savings are key!

Think about it this way: there’s no advantage to NOT getting a multi auto insurance policy if you have more than one vehicle in the family. You are going to have to get those vehicles insured anyhow, so do it cheaply.

YOU MIGHT NOT HAVE TO GET A NEW POLICY!

If all of your auto insurance is through the same insurance provider, you can keep your current policies and still get a discount in all likelihood. All you have to do is call your insurance company, tell them you have more than one policy with them, and ask for a discount. They will give it to you because they know that, if they don’t, you will switch to an auto insurance company that will.

AND IF YOU CAN’T GET IT WITH YOUR CURRENT POLICY…

Look into moving to a new provider. Get auto insurance quotes through the companies listed on our site, ask an agent if they will give you a multiple vehicle discount, and sign up. Once you have new insurance covering you, you can go ahead and cancel your current auto insurance policy.

Be sure to check out the fine print and make sure you actually qualify. Sometimes these agreements can be misleading.

IT WORKS FOR MORE THAN JUST CARS!

Do you have a motorcycle, an RV, a boat, or any other motorized vehicle? You can get insurance for these through auto insurance companies at maybe just dollars more than you currently pay.

LOOK INTO OTHER DISCOUNTS AS WELL

The Multiple Vehicle Discount is big, but it’s not the only discount out there. Make sure you ask your online auto insurance company about anything else you could qualify for. Even a simple defensive driving course could save you hundreds of dollars.

Online Auto Insurance FAQs

Shopping for auto insurance can seem like an overwhelming chore. You must have it but there are so many options from which to choose. You are terrified you will make the wrong choice and wind up with a useless but expensive policy. Use these frequently asked questions (FAQs) to guide your decision.

WHAT TYPE OF COVERAGE DO I NEED?

This will depend on several factors including whether you own your car or not. If you have a car loan, the financial institution administering your loan will dictate the type of coverage you must have which is typically full coverage until the loan is paid. Similarly, if you lease a car, the leasing agent will determine the amount of coverage you must maintain – this is also usually full coverage. Full coverage consists of liability, collision, and comprehensive insurance. When you own your car outright, you have the discretion of deciding what type of coverage to get which is often based on how much you drive your car and where you drive it.

WHAT IS THE MINIMUM COVERAGE I CAN GET?

Typically you are permitted to obtain only liability coverage. This type of insurance will pay for medical expenses and vehicle damage to other parties if you cause an accident. It does not cover your own costs associated with an accident at which you are at fault. The exact amount you must be insured for is determined by your state’s law.

CAN MY TEENAGER GET COVERAGE?

Teenage drivers can get coverage but have to pay higher premiums. To get lower rates, your child should complete a driver’s education program. Students who excel academically can also get “good student” discounts which will help lower the costs.

DO I HAVE A SAY IN WHAT MY DEDUCTIBLE WILL BE?

To some extent you do have the ability to determine your deductible. If you want a really low premium, you will be required to pay a higher deductible. But if you want a low deductible as well as a low premium, you must maintain a clean driving record and good credit. The car you are insuring should be low risk for theft and damage based on make and model as well as where you live and work.

HOW SOON DO I GET PROOF OF INSURANCE?

As soon as you are approved and make your first payment, you will be given proof of insurance. This is especially simple when you use quotes to get online auto insurance. You can print your proof of auto insurance after your application has been approved and signed electronically.