Choosing an Auto insurance in 2021: Here’s how to pick the right policy!

April 6, 2021


RHI Agency Team

Auto insurance coverage includes:

  • Property – any physical damage or theft of your vehicle
  • Liability – any legal responsibility in case of injury to people or property damage
  • Medical – medical expenses that may arise due to injury, rehabilitation, and on some occasions lost salary and expenses for a funeral

In the U.S buying, personal auto insurance is mandatory for all vehicle owners and the laws may vary depending on the state you are in. The policies usually have a validity of 6 months or 1 year and need to be renewed after the period.

The auto insurance policy will cover you and the family members who are listed in the policy, whether it’s your car or someone else’s. The policy will also provide coverage if your car is driven (with your permission) by a person who is not listed in the policy.

An auto insurance policy taken under your name will cover only personal driving and will not provide coverage if your vehicle is used for commercial purposes, like pizza delivery, uber, etc.

Different types of auto or car insurance policies

It is very important to understand the different types of insurance coverages available if you are planning to buy a new car or insurance coverage. These insurance coverages help to protect you, your fellow passengers, and your vehicle in case of an accident or theft.

In the US, some states have made certain types of auto insurance mandatory while some states have not.

Liability coverage

Auto liability coverage is compulsory in most of the states in the US. Each state has a set minimum amount of liability coverage that the drivers are required to buy, by the law. There are two components to liability coverage

Bodily injury liability – will help to cover the costs of injuries that may arise due to an accident caused by you or the person driving your vehicle

Property damage liability – will help to pay for damages caused to any properties like building, fence, etc. by you or anyone driving your car

Comprehensive Coverage

Comprehensive coverage will help you pay for any damages caused to your car from theft, collisions, hail, fire, or vandalism. If your vehicle is damaged by any of the listed reasons in the policy, the comprehensive coverage will help to repair or even replace your vehicle (conditions apply). Comprehensive coverage is usually optional coverage.

Collision Insurance

Collision insurance as the name indicates will help the insurer pay if he/she is involved in an accident with any other vehicle or collide with objects like a fence, tree, etc. This coverage will help the insurer to repair the damage or replace the car (conditions apply).

Underinsured and Uninsured Motorist Coverage

If the insurer is hit and injured by an underinsured driver, their insurance coverage will not be sufficient to cover his/her medical bills. In such cases, the underinsured motorist coverage will protect the insurer against the bills.

Meanwhile, if the insurer is hit by a driver without any insurance, the uninsured motorist coverage will help to pay his/her medical bills in case of any injuries. In some states of the U.S, this coverage will also include repairing costs of the vehicle.

Medical Payments Coverage

Roads are unpredictable and accidents may happen in the blink of any eye. Depending on the grade of the accident, the medical bills can be very expensive. If you or anyone driving the insured vehicle meets with an accident and is injured, medical payment coverage will help to cover the cost of the injuries associated with the accident.

This coverage may include the cost of hospital visits, x-rays, surgery, and more. Medical payment coverage is mandatory in some states of the U.S and optional in others.

Personal injury protection

This insurance covers certain medical expenses mention in the policy and also the income loss you may suffer due to an accident. A personal injury protection policy is available only in some states and some of these states have made it mandatory for every vehicle owner.

Apart from the above-mentioned insurance policies, there are a variety of optional coverages that you may add to your auto insurance policy. These optional coverages and their benefits may vary from state to state.

So it is always recommended to consult a trusted insurance agency in your state and discuss your needs and explore your options before buying a policy. Some of the other coverages associated with an auto insurance policy are:

  • Transportation expense coverage OR Rental reimbursement coverage
  • New car replacement coverage
  • Gap Coverage
  • Towing & labor cost coverage
  • Ridesharing coverage
  • Classic car insurance
  • Sound system coverage

Let us help you choose the right Auto Insurance!

If you need expert advice on choosing an insurance policy, we are always happy to help! RH Insurance provides a variety of insurance options to our clients, including Auto insurance. Yes, there are a lot of things to factor in before choosing auto insurance, and that is precisely why you need the help of an insurance expert.

We provide our clients with insurance assistance to help them make the right purchase decision. Contact us today to get started.

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