What is standard auto insurance? This is a basic requirement for everyone who owns or drives a car. Furthermore, this insurance type acts as a safety net against financial loss associated with theft, accidents, as well as other vehicle-related events. Standard auto insurance is a type of insurance policy that offers a wide range of coverage, like comprehensive, liability, and collision insurance, that ensures that policyholders have the right amount of coverage. In this blog post, you will understand the basics of how standard auto insurance works, what this policy covers, as well as its exclusions, cost, and how you can secure yourself a good policy. Without further ado, let us get into it.
What Is Standard Auto Insurance?
Standard auto insurance is also known as standard car insurance. This is a type of policy created to offer financial protection against bodily injury and physical damage that are a result of traffic collisions and liability that could be caused by events in a car or vehicle. What’s more, standard auto insurance usually has various coverage types like collision, liability, personal injury protection, comprehensive, and underinsured or uninsured motorist insurance coverage. Undoubtedly, every car owner needs this insurance type not only for protection but to meet the legal requirements as well.
How Does It Work?
Standard auto insurance operates by transferring all the financial risks involved with operating and owning a car to the auto insurance provider. However, the car owner will need to pay premiums in exchange for receiving coverage. When both parties agree to this, the insurance company will be responsible for covering the costs related to vehicle-related damage, vandalism, theft, and accidents when you file a claim with your insurer. The insurance company will assess the claim, and if it is valid, you will receive reimbursement for legal fees, replacement or repair, and medical expenses, up to the specifics of your policy.
What Does Standard Auto Insurance Cover?
Here is what a standard car insurance policy typically covers when a person purchases a quote with an insurer:
- Liability Insurance.
- Collision Insurance.
- Comprehensive Insurance.
- Personal Injury Protection (PIP).
- Uninsured/Underinsured Motorist Coverage.
What Are Its Exclusions?
Although a standard car insurance policy offers a wide range of coverage, there are certain exclusions, and they include:
- Personal belongings inside the vehicle.
- Intentional damage.
- Use in racing or other speed contests.
- Damage from certain natural disasters, war, or nuclear hazards.
- Normal wear and tear.
- Mechanical or electrical breakdown.
How Much Does a Standard Auto Insurance Policy Cost?
The cost of standard auto insurance depends on factors like geographic location, driver’s age, deductible amounts, driving history, vehicle type, and selected coverages. Premiums from insurance companies can range from a few hundred to several thousand dollars per year. This is why you need to shop around and compare policies from different insurance companies to find the best coverage and rate for your needs.
How To Get Standard Auto Insurance
Buying standard auto insurance is a very straightforward procedure, especially if you are eligible for one. If you have no idea how to carry out the process, here is how to begin:
- Look around.
- Choose a policy.
- Enter the necessary information.
- Make your premium payment.
- Get your proof of insurance.
Not only will these steps help you purchase a quote or policy, but they will also help you choose the most suitable coverage.
Frequently Asked Questions
Is auto insurance mandatory?
Yes, in most states, carrying at least liability insurance is legally required.
What happens if I don’t have auto insurance?
Driving without insurance can result in severe penalties such as fines, license suspension, and even vehicle impoundment.
How can I reduce my auto insurance premiums?
If you are making plans to reduce your premiums by going for a higher deductible, making sure your driving record is clean, asking for or requesting discounts, and reviewing your coverage needs periodically.
Can I customize my auto insurance coverage?
Yes, most insurance companies offer a range of personalizable options and riders that enable policyholders to customize their coverage to their specific needs.
Does my auto insurance cover other drivers who drive my car?
Typically, your car insurance policy covers other drivers who have your permission to drive your car. However, the specifics can vary by policy and insurer, so it is important to review your policy details or consult with your insurance agent.
How can I file a claim if I get into an accident?
To file a claim, contact your insurance company as soon as possible after the incident. You will likely need to provide details about the accident, documentation such as a police report, and possibly photos of the damage. Your insurer will guide you through the process and may send an adjuster to assess the damage.
Can I cancel my auto insurance policy at any time?
Yes, you can generally cancel your auto insurance policy at any time. However, it is important to have new coverage ready before canceling your current policy fully to avoid a lapse in coverage, which could lead to higher premiums in the future and legal penalties.