While the Pythagorean theorem and the definition of mitochondria might still be sharp in your mind, you most likely didn’t learn anything about auto insurance in school. Along with taxes and mortgage payments, insurance is one of those real-life essentials that many people have to learn as they go. If you can relate, PFS Group of Brooklyn, NY, explains some basics of auto insurance.

What Is Insurance?

In simplest terms, insurance is a financial protection policy to safeguard you from the worst-case scenario. The policyholder pays the insurance provider a certain sum of money every month, and in return, the provider promises to cover the majority of the expenses in case you get into an accident. If an accident occurs, policyholders must first pay a deductible—a substantial but relatively small sum of money compared to total accident costs—before the insurance company pays the rest.

What Will They Cover?

Most auto insurance policies cover medical expenses for personal injuries and collision repair for your vehicle. In addition, most drivers opt for several add-ons. Uninsured or underinsured motorist coverage will protect you financially if the driver you get into an accident with doesn’t have an adequate policy. If they are at fault, but their plan won’t pay for your damages after the accident, your insurance company will step in under this addendum to front the bill.

How Can I Save Money on Auto Insurance?

Since your auto insurance policy will be a significant monthly expense, it’s smart to start thinking of ways to make it more affordable. For one, you can bundle this plan with other essential policies from the same provider—such as home, renter’s, motorcycle, or life insurance. Just like buying in bulk, the more policies you secure through the same company, the cheaper your premium will be. You can also ask for a higher deductible to lower your monthly premium. If you have savings set aside for freak accidents, this option may suit your needs. You can also ask your insurance provider about discounts, such as those for safe driving records.

If you have more questions about the world of auto insurance, turn to the team at PFS Group. They have served clients in the area for over 35 years, and they’ve acquired a wealth of knowledge along the way about how insurance policies work. For additional information about securing a plan of your own, call (718) 385-5300. Visit the website to get an auto insurance quote today.