7 Things Every Driver Should Know About Car Insurance

Auto insurance is a legal requirement in most states, and it’s important to have the right coverage. While comparing policies and rates may seem daunting, it’s important to check with your Lincoln dealer to ensure you’re getting the best deal. Here are seven things every driver should know about car insurance:

7 Things Every Driver Should Know About Car Insurance From a Lincoln Dealer

1. Understand How Prices Are Determined

Several factors are used to calculate vehicle insurance rates, including your driving record, car type, age and gender, marital status, and where you live. Insurance companies also use your credit score to determine rates in some states. 

2. Differentiate Between Types of Coverage

There are several types of vehicle insurance coverage. These include liability, collision, comprehensive, and uninsured/underinsured motorist.

• Liability insurance: covers damage to other people or property
• Collision insurance: covers damage to your car in an accident
• Comprehensive insurance: covers damage to your car from events such as theft, vandalism, or natural disasters
• Uninsured/underinsured motorist insurance: covers damages to you and your car if you’re in an accident caused by an uninsured or underinsured driver

All states require drivers to have liability insurance, but collision and comprehensive coverage are optional. It’s important to understand the types of coverage available so that you can make an informed decision about what to purchase.

3. Consider Buying More Than the Minimum Coverage

The minimum auto insurance coverage required by most states is liability insurance. However, this may not be enough to protect you financially if you’re involved in a serious accident.

If you have significant assets, you may want to consider buying more than the minimum coverage to protect yourself from financial hardship in the event of an accident.

4. Get Quotes from Multiple Companies

Don’t just go with the first company you find. Get quotes from multiple companies to compare rates. Remember, the cheapest company may not always be the best option. Ensure you’re getting the coverage you need at an affordable price.

5. Consider a Higher Deductible

A higher deductible leads to lower premiums. However, it also means you pay more out of pocket in case of an accident. If you don’t think you’ll be able to afford a high deductible, consider splitting the cost with a friend or family member who is also insured with the same company.

6. Ask About Discounts 

Insurance companies offer discounts for things like having a clean driving record, being a good student, or taking defensive driving courses. Ask your agent to see if you qualify.

7. Bundle Your Policies

You can often save money by bundling your vehicle insurance with other types of insurance, such as homeowner or medical insurance. Ask your agent about bundling options to see if it’s right for you.

Understanding your options regarding auto insurance can help you ensure you’re getting the best coverage for your needs at a price you can afford. Contact Bayway Lincoln today for more information about auto insurance.

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