Auto

Did you know that auto insurance covers more than just the repairs to your car if you are in an accident?  It also protects people… whether you, your passengers, other drivers, or pedestrians.  Do you have enough coverage to protect your assets in the event of a car accident?

Most people don’t understand how auto insurance works or what makes up their insurance premiums.  They have it because the law requires it.

At HealthPlan Headquarters (HPHQ), we educate our clients about the different components that make up auto insurance coverage and why each one is important.

Some of the most common components of auto insurance are:

Liability Coverage. If you are legally responsible for damage to a vehicle or the injury of someone involved in an accident, bodily injury liability insurance and property damage liability insurance will cover these costs.

Personal Injury Protection (PIP). This covers the medical care that is deemed reasonable and necessary to treat someone injured in an auto accident.

Collision Coverage. This helps pay for damages to an insured vehicle that is caused by a collision with another vehicle or object.

Comprehensive Coverage. This helps pay for damages to an insured vehicle caused by other means such as vandalism, theft, fire, hail or flood.

Uninsured Motorist. This covers losses or damages for a person injured in an accident caused by someone who does not have Liability Insurance coverage on their own auto insurance policy.

Underinsured Motorist. This covers losses or damage for a person injured in an accident caused by someone who does not have enough Liability Insurance coverage on their own auto insurance policy.

Rental Reimbursement. This will cover all or a portion of the cost of renting a car while your vehicle is being repaired from damages in an auto accident.

Emergency Road Service. If your car breaks down, then emergency road service coverage will help pay for the expense of having it towed.

When it comes to designing your auto insurance policy, determining how much coverage you should have takes some thoughtful consideration.

For instance, liability limits should be determined based on what you have to lose. This can include:

  • your home
  • other real estate
  • retirement accounts
  • bank accounts
  • any other assets you might possess
  • in some states you can also lose future earnings

Generally when you increase your liability limits, the premium increase is minimal.

When you have a better understanding of what determines your premiums, you can make better decisions about the insurance you choose.

Many people do not know that there are several factors involved when an insurance company determines your premium.  Some of these factors might include:

  • your age
  • credit standing
  • marital status
  • driving record
  • type of vehicle you drive
  • number of vehicles you have
  • the amount of driving you do and if it is for personal and/or business use
  • other types of coverage you have

Some companies also give discounts for having more than one insurance policy with them.

We know cost is an extremely important factor in your insurance decision. No one wants to pay more than they have to, and everyone wants an excellent company with superior customer service and claims handling.

A HPHQ Guru would be happy to educate you further on your auto insurance options as well as help you choose a policy that will meet your needs and budget.

Come in to our HPHQ store today, contact us by phone, or complete our Individuals & Families Quote Request Form and an HPHQ Guru will contact you to discuss your situation and provide you with a quote.

Comments are closed.