Whether you’re moving to a new state or just learning to drive, you’ll need to arrange auto insurance for your vehicle. Shopping around for quotes from several different companies or working with an insurance agency will ensure you find the best policy for your needs. Here’s what you need to know to help you navigate this process.

4 FAQ About Auto Insurance

What are the different types of coverage options?

Collision coverage provides compensation if your car is in an accident while driving. It does not cover other types of damage, such as vandalism, water-damage, or being hit or dented while parked. Comprehensive coverage assures your vehicle’s protection in these non-accident related incidents. However, comprehensive coverage does not include collision coverage.

How much coverage do I need?

This varies from state to state. Alabama requires at least 25/50/25 coverage. In other words, your policy must include no less than a $25,000 bodily injury liability limit per person, with a $50,000 maximum payment for bodily injuries per accident and a $25,000 maximum coverage per accident for property damage.

Any repair or damage costs beyond your policy’s maximum payout won’t be covered by your provider and will need to be paid out-of-pocket. You may also need higher coverage limits, even if they’re not legally required.

What determines my rates?

Insurance companies assess risk using data from past owners and accidents to predict what expenses you’re likely to run into. The greater your risk of expenses, the higher your monthly premiums will be.

Factors like age, gender, health, driving location, car type, type of use, and driving history all play a role. Lower your rates by choosing an inexpensive car that’s easy to repair. Imported vehicles often cost more to insure because repair parts are more expensive and may have to be shipped from far away. You can also take defensive driving courses and decrease your vehicle usage to improve your driving record and lower your rates over time.

Can I get auto insurance with a bad driving record?

If you’ve been in multiple accidents in the past or have a history of traffic or speeding tickets, you can still get insured, but your rates will likely increase. If you’re in a high-risk group based on poor driving history, you may need to accept a different type of plan or lower your coverage costs. 

Some insurance companies may turn you down or opt not to renew your policy. Depending on where you reside, certain incidents will drop off your driving record over time. When this happens, your rates will decrease, and you’ll have more policy options to choose from.

For business and personal auto insurance coverage in Baldwin County, AL, trust the professionals at Ebert Agency. This company has been family-led for over three generations and offers comprehensive and tailored policies backed by large national insurers. Call (251) 943-2281 to schedule a consultation. View their range of coverage options online.