Auto insurance is one of the most significant purchases you’ll ever make. As long as you’re adequately covered, it can protect you from experiencing significant financial hardships during a disaster. As such, you want to ask any questions before buying a policy to ensure you end up with the right coverage. The following guide offers valuable insight into this type of protection, so you can make informed decisions. 

4 Common Questions Concerning Auto Insurance

When should I buy auto insurance?

You’re legally required to have an active auto insurance policy any time you get behind the wheel. If you’re just getting your license or buying a new car, purchase coverage before driving on your own or off the lot.

You can choose the date the policy goes into effect so you don’t have to pay for it when it’s not in use. Also, always reevaluate your coverage needs after any major life event, such as getting married, moving to a new state, or buying a home.

What’s covered under a standard policy? 

Auto policies are customized according to each driver’s unique needs. Many people purchase multiple types of coverage, as they all offer protection for different situations. Liability insurance is designed to pay for third-party injuries or property damage as a result of any accidents you cause.

Collision and comprehensive coverage will help repair or replace your own vehicle if it’s damaged or stolen. Uninsured/underinsured motorist coverage offers reimbursements if you’re hit by someone who lacks sufficient insurance to pay for the damages.

What should I consider when purchasing coverage?

There are several considerations to take into account when determining what type and how much coverage to buy.

You’ll want to factor in the value of the vehicle and the rest of your assets, your budget, and whether your area has a high risk of natural disasters and criminal activity.

How can I reduce my rates?

Many auto insurance companies offer ways to lower premiums. While it varies from one insurer to the next, you can often cut coverage costs by increasing your deductible or bundling your home and auto policies together.

Other strategies include limiting your mileage, enrolling in a defensive driving course, and maintaining a good credit score. Your agent can tell you what discounts you’re eligible to receive.  

If you have additional questions, reach out to Phil Taylor Insurance Agency in Clarksville, AR. Backed by decades of industry experience and knowledge, they’re qualified to provide you with all the information necessary to secure a suitable auto insurance policy at the best price available. They offer a wide range of quality products and are dedicated to making sure each client achieves their financial goals. Call (479) 754-2616 to schedule an appointment, or visit them online to request a quote.