Although insurance and other related words like auto insurance, life insurance, medical coverage, etc. seem regular nowadays, few people really understand what they are all about and how much of our attention they deserve. Basically, insurance is a contract, represented by a policy, where a company like Praetorian insurance company offers an individual or entity financial protection or reimbursement against losses or damages.
There are dozens of different types of insurance policies used to hedge against both big and small risks of financial loss. They often cover losses from direct damage to the insured or his/her property, or liability for injury or damage meted on a third party.
If you are among the millions of car owners across the U.S and beyond or you are planning on purchasing a vehicle, keep reading keenly.
Auto insurance refers to the collection of policies the insurance company offers to protect you in different ways against financial loss in case an accident occurs or theft. The contract will have you paying a premium in exchange for the company agreeing to settle your losses according to your policy.
What are the different available types of auto insurance? How much auto insurance do you really need? Finding answers to these questions and many others will help you choose your auto insurance company and policy right.
Let’s begin with the Basic Components of Insurance Policies
Choosing an insurance policy that is best suited to your needs starts with understanding these three basic concepts, i.e. the premium, policy limit, and deductible.
The premium of a policy is its price, usually defined by the insurer as a monthly cost. The amount is often subject to your risk profile or that of your business which may or may not include creditworthiness. For instance, you can expect your auto insurance premiums to be higher if you have a reckless driving history and own a number of expensive automobiles.
The policy limit refers to the maximum amount under a policy to be paid by the insurance company to cover a loss. Maximums are set either per period like annually, per loss or injury, or after the life of the policy. Generally, higher limits go with higher premiums.
Deductibles are specific amounts required to be paid by policyholders out of their pockets before a claim is settled by the insurer. They are always set to limit large volumes of unnecessary claims. There is so much flexibility in how deductibles are applied but higher deductibles are generally less expensive.
You must realize that different insurers charge differently and structure their policies in different ways. This further highlights the need to work with a company that would offer you exactly what you need.
For example, Praetorian Insurance Company strongly believes insurance is a key investment in keeping your most precious assets, yourself, and the well-being of your family. From the huge pool of positive Praetorian Insurance Company reviews, it’s quite evident their commitment and flexibility are working to deliver industry-leading insurance product.
What are the Types of Auto insurance and What Coverage Do You Need?
Before reaching out to an insurer for your insurance quote, it’s important to have an idea about the kind of coverage you need. State laws are not quite the same on the subject of auto insurance. However, every state has minimum insurance requirements known by many as one-way insurance. This is usually liability insurance. Below is a summary of its terms and the other common types of coverage you can choose to add;
- Liability; Bodily injury and property damage liability which only covers the medical bills and vehicle repairs of a third party involved in an accident caused by you. Excludes you and your passengers.
- Comprehensive; This coverage protects your vehicle against damage not resulting from an accident e.g. theft or a natural disaster. Comprehensive coverage is usually purchased with collision insurance and it’s optional unless required by your lender or lessor.
- Collision; After an accident, this type of coverage pays for the repairs or replacement of your vehicle. Collision coverage often extends to damage from a collision with a tree, house or other objects and even something like a flip accident with no objects involved.
- Person Injury Protection (PIP); Also known as “no-fault insurance”, this coverage pays for medical expenses incurred from an accident with no consideration of fault. Many states in the U.S don’t have this coverage which extends to your household, passengers and other drivers listed on your policy.
- Auto Medical Payments; Commonly referred to as MedPay, this type of coverage is similar to PIP with more limited scope. It covers medical expenses incurred by you, members of your household, and other policyholders. It’s optional and supplements health insurance for people who have it while serving as a great substitute for people who don’t. MedPay usually covers copays and the deductibles of other insurance such as PIP and health insurance policies.
- OTHERS; other types of auto coverage and terms you are likely to encounter in the industry include Uninsured/Underinsured Motorist Coverage, Guaranteed Auto Protection, Personal Umbrella Policy, Emergency Roadside Assistance, Pay-As-You-Drive or Usage-Based Insurance, Non-Owner Car Insurance, SR-22, etc.
Making Your Choice!
Shopping smart always involves looking for the best products or services at the lowest possible rates and it’s no different with automobile insurance.
To choose the ideal insurance company for your auto insurance needs, you must check out like five options and look beyond good car insurance premiums. You will want to do some research to learn about their financial strengths, compare their premiums, and if/how your credit score will be used in determining your rate.
Information like Best’s Credit Reports on Praetorian Insurance Company, over 30 years of experience, competitive rates, and a unique track record which values the thoughts of clients to improve on products and business practices are amazing indicators.
While hoping you never have to file an auto insurance claim, it is important to be well placed and educated on how to go. What you first need is an insurance provider that will be available 24/7 and has the resources to pay your claim fully and in time.
In reality, the experience of calling for quotes after an accident can be frustrating. You need support from someone with your best interest in mind and someone you can trust. Everyone should be able to simply compare the best car insurance quotes from leading insurance providers and that’s what’s on offer at Praetorian Insurance Company. With just a few clicks, you will have a comprehensive analysis.
Unlike most who provide a single quote and direct you to an agent, at Praetorian ins, every client is treated the same, and first of all, listened. This is to help create an insurance policy that exceeds the expected coverage of each client at the best price.
Getting your auto insurance right is really important!