When people purchase a new vehicle, many of them are confused as to what type of auto insurance policy they need and how much coverage they should have. In many states, at least a liability insurance policy is required by law but the rest of the coverage will depend on many factors.
The amount of coverage will depend largely on how much your vehicle is worth, what type of vehicle it is, and if you financed the vehicle. Liability insurance is the minimum requirement and the least expensive of all auto insurance policies. It covers bodily injury to another person if you cause an accident and property damage that you may cause while you are driving but will not cover the repairs or replacement cost of your vehicle.
Although required by law in most states, some people do not obtain auto insurance and if you are involved in an accident caused by someone with no insurance, having uninsured and underinsured motorist coverage will help you immensely. It can help pay medical bills you may incur and in some situations, will pay for repairs to your vehicle. This policy also helps if the person that caused an accident does not have enough liability insurance to cover your medical and other bills.
If your car, truck, or SUV is financed, your lender will require that you have full coverage insurance. This type of policy encompasses the liability to others along with comprehensive coverage. This coverage will help cover your vehicle if it is damaged due to things like vandalism, theft, fire, or hail. This type of policy will have a deductible.
When it comes to deductibles, you can work with your insurance agent to determine how much of a deductible you want with your policy. The higher the deductible, the lower your insurance premiums will be but if an event happens that results in damage to your vehicle, you will be shelling more money out of your pocket before the insurance policy will kick in to pay for repairs or replacement costs.
To find out which type of auto insurance policy is best for you and your vehicle, call upon the trusted agents at StraightEdge Insurance Agency in Georgetown, TX today. Our agents at StraightEdge Insurance Agency can help walk you through the insurance process and get you a quote. Visit or contact our office in Georgetown, TX for more information.