With all the options available, choosing an auto insurance policy can be confusing and overwhelming. Of course, you want enough coverage to protect yourself from the unexpected, but no one wants to pay for insurance they don’t need. Understanding the types of auto insurance available will help you choose a policy that’s right for you.

How to Choose an Auto Insurance Policy

Liability Coverage

Every state requires drivers to carry a minimum amount of coverage to compensate other motorists after an accident. In Alabama, for instance, you must have at least $50,000 in personal injury coverage per accident, along with $25,000 for property damage. However, the costs of even a minor accident can quickly exceed these limits, which is why most experts recommend carrying liability coverage equal to all your other assets.

Collision & Comprehensive

Liability coverage will cover the other driver’s losses if you cause an accident, but what about damage to your own vehicle? Collision coverage will pay for the cost of repairs, while comprehensive insurance protects you from theft, vandalism, storm damage, and various other threats.

If you financed your vehicle, the lender will probably require you to carry comprehensive and collision coverage. Even if you own your vehicle outright, these policies provide crucial protection for more valuable vehicles. However, if you drive an older car worth only a few thousand dollars, comprehensive and collision coverage may not be worth the cost.

Underinsured or Uninsured Motorist Coverage

If someone else causes an accident, their auto insurance company should pay for your damaged vehicle, medical expenses, and lost wages. Unfortunately, if you’re hit by someone who doesn’t have the minimum insurance, you could be left covering these costs out of your own pocket. Underinsured or uninsured motorist coverage kicks in to pay these expenses if you’re in an accident caused by an uninsured driver or your damages exceed the limits of their policy.

Choosing an auto insurance policy doesn’t have to be confusing. With decades of experience serving drivers throughout Foley, AL, Absolute Insurance Agency understands the industry and has the resources to find a policy tailored to your needs. Visit their website for an overview of their policy options, or call (251) 942-6837 to make an appointment and request a free quote.