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Auto insurance is required by law for all vehicles on the road. As a new driver or car owner, it’s your responsibility to get the appropriate coverage. Get started by understanding the basics of how policies work and how you can use them to protect yourself.

A Basic Guide to Auto Insurance

Components of a Policy

When you sign up for a policy, your agent will negotiate the three main components with you. The premium is the amount you pay to receive the coverage and is typically paid monthly, quarterly, or semi-annually. The deductible is the dollar amount you pay when you submit a claim before your insurance provider offers their coverage. The higher your premium is, the lower your deductible will be.

Finally, the coverage amounts outline how much you’ll receive after an incident. These numbers depend on the type of incident, your policy, and the submitted claim. Generally, the higher your premium or deductible, the more coverage you’ll get.

Types of Coverage & Benefits

auto insuranceThere are many different types of coverage. Liability insurance covers the vehicle repairs, damaged properties, or medical costs associated with a collision that you were at fault for.

Collision insurance covers anything that happens while you’re driving. It’ll pay for the repair costs if you damage the suspension while driving over a pothole or if loose debris cracks the windshield.

Comprehensive insurance covers most incidents that happen while you’re not driving, such as damage from storms or vandalism. Uninsured or underinsured motorist coverage will pay for your medical costs or property repairs if someone else causes a collision and doesn’t have adequate coverage.

Claims Process

If you’re in an accident, reach out to your insurance provider to inform them and submit a claim. They’ll ask you about the details of the accident, such as where and when it happened, who was driving, and what type of damage occurred.

They may send someone out to look at the damage or ask you to send pictures. They’ll then determine whether the incident is covered under your policy. If it is, they’ll work with your mechanic to cover the costs of repairs. Once you pay the deductible, they will pay the rest, up to your coverage limits.

 

A professional insurance agent will help you better understand the basics of auto insurance and pick the best solution for your needs. Metro Insurance Agency offers a wide range of insurance policies at fair rates in Waynesboro, VA, and throughout Augusta County. Their team has more than 22 years of experience in the business and will take the time to explain your options. Learn more about the company on their website, or call (540) 942-2200 to request a free, no-obligation quote.

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