Auto or car insurance coverage has two parts. The first is the liability section of the policy. It covers your financial responsibility for injuring others. Some liability coverage is required by most states.

The second part of auto insurance covers the car itself: comprehensive coverage reimburses losses from fire, theft or other perils; collision coverage pays to repair losses caused by an accident. Often this coverage is mandated by leasing companies or banks. There are also ancillary medical, car rental and other coverage which vary by state.

Utilizing high deductibles on the physical damage coverage can help reduce premiums. If you carry umbrella insurance, you must be sure that you carry the required amount of basic liability insurance to avoid a gap in coverage for a serious accident.

Basic personal auto insurance is mandated by most states and provides you with some financial protection in case of an accident. But is it enough? What are the options? Learn how car insurance works and what types of coverage are available.

Understanding Auto Insurance—The basics
Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.

Auto insurance provides coverage for:

  • Property – such as damage to or theft of your car
  • Liability – your legal responsibility to others for bodily injury or property damage
  • Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses

Basic personal auto insurance is mandated by most U.S. states, and laws vary. Auto insurance coverages are priced individually (a la carte) to let you customize coverage amounts to suit your exact needs and budget.

Policies are generally issued for six-month or one-year time-frames and are renewable. The insurance company sends a notice when it’s time to renew the policy and pay your premium.

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How does it work when purchasing car insurance?
Here’s an overview of how the car insurance process works:

  • Start by getting a quote. A “quote” is another word for a car insurance estimate. Based on information about you, your history, your car and the type of car insurance you wish to buy, insurance providers quote you a price (also known as your “insurance premium”). When you get a quote with iiYbi Brokerage, it’s always free and there’s no obligation to purchase. You may even be eligible for a discounted car insurance rate.
  • Choose the type(s) of insurance you want. Liability insurance is mandatory for all U.S. drivers, though the required coverage amounts and types vary depending on your state’s laws. While some drivers opt for only state-minimum coverage, having additional coverage can provide extra protection on the road. There are also specialized types of insurance you can choose from, such as Classic Car Insurance. If you appreciate the classics, classic car insurance coverage is specifically designed to meet your unique needs so you can hit the road with the right protection.
  • Select your deductible amounts. A deductible is the amount you are responsible for paying out of pocket in the event of an accident before your insurance kicks in. For instance, if you have a $500 deductible but your vehicle has $1200 worth of damages, you would pay the first $500 and your insurance provider would pay the remaining $700 (if the accident is covered under your policy). Note that a higher deductible means a lower insurance premium, but it could also mean paying more out of pocket in the event of damage.
  • Purchase auto insurance. You can choose to pay your annual premium up front, or pay monthly. Remember to always have your insurance card (or “proof of insurance”) with you each time you drive.
  • In the event of an accident, file a claim with your insurance company as soon as possible. A “claim” is the process of giving your insurance
    provider all the information about the incident so they can determine if it is or isn’t covered, and how much damage they may reimburse you for. 

iiYbi Brokerage offers free, comparative quotes on auto insurance from multiple insurance carriers so you can get the best possible rate.

Want to see how much we can save you? Just request a quote to find out.

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