Car Insurance Guide: Types of Coverage and How to Save
 

I’ve seen a lot of confusion/questions on this sub regarding car insurance. I work for an insurance company and just wanted to share my knowledge with you all. I hope this helps. Let me know if you want any clarifications or additions.

Types of Coverage

Your auto policy is broken down into different coverage types. Below I’ve outlined the basic coverage types. These are fairly standard company to company, state to state. There are some variations such as exclusions/definitions depending on the company. Additionally, states have different minimum requirements as well as some different coverage options/requirements.

Collision This is what most people think of when they picture car insurance. It covers damage to your car resulting from an accident (with another car or stationary object). Collision is usually required when you have a car loan. When you don't have a loan, collision is usually an optional coverage. If you are driving a beater it may not be worth the money to insure, especially if you have an emergency fund to cover a new car in case of an accident. Deciding whether to drop collision is a personal decision. I would recommend talking to an agent. They can break down your quote and tell you what it costs to keep collision on your vehicle. This will help you decide if it's worth it.

Comprehensive (Comp) Comp is simmilar to collision but this covers damage to your car caused by an 'act of god' (wind, hail, falling trees, deer, cracked windshield, etc.) Everything else that I said for collision applies here. However, note that you can have separate deductibles for comp and collision. Many people like having a lower comp deductible to cover the less severe cosmetic damage (hail, glass).

Having understood all the advantages of auto insurance, it would be at least a stupid decision to refuse it, because a small insurance premium can really save your wallet from unforeseen expenses. Therefore, I insure my car every year. Namely Skoda Insurance Rates at zecoverage. I think you yourself know why you need to insure your property

I recently moved from being covered on my mother's policy to getting my own stuff. I had never paid attention to the auto insurance group benefits offered thru my employer until I was shopping for new coverage, but the discount I get for being an employee is HUGE!! I got a a STRONG policy with higher limits of liability and extra coverages through Metlife, which does our group policies where I work, for $38 a month.