Things to Know About Car Insurance Policies
Car insurance is a contract between you and an insurer that protects you financially in case of accidents, theft, or damage. Understanding the details of a policy is essential before signing up. Killingbeck Insurance and Tax Preparation Services (IN) provides car insurance in Logansport, IN and surrounding areas.
- Types of Coverage
Policies usually include several components:
Liability coverage: Pays for injuries or damage you cause to others.
Collision coverage: Covers damage to your own car from accidents.
Comprehensive coverage: Protects against non-collision events like theft, fire, or storms.
Personal Injury Protection (PIP) or Medical Payments: Covers medical expenses for you and passengers.
Uninsured/Underinsured Motorist: Protects if the other driver has little or no insurance.
- Premiums and Deductibles
The premium is what you pay (monthly, quarterly, or annually) for coverage. The deductible is the amount you pay out-of-pocket before insurance applies. Higher deductibles often mean lower premiums, but they increase your initial costs after a claim.
- Policy Limits
Coverage comes with limits — the maximum the insurer will pay per incident or per year. Make sure these limits are high enough to protect your assets.
- Exclusions and Conditions
Not every situation is covered. Policies may exclude wear and tear, intentional damage, or driving for rideshare services unless specifically added. Always read the fine print.
- Factors Affecting Rates
Premiums depend on your driving record, location, age, car type, credit score (in many states), and even mileage. Safe driving and bundling with other insurance can lower costs.
- Renewal and Changes
Review your policy at each renewal. Life changes — moving, buying a new car, or adding drivers — may require adjustments to maintain adequate protection.
- Claim Process
In case of an accident, report it promptly, provide accurate details, and cooperate with the insurer’s investigation. Keep records of repairs and communications.
Understanding your car insurance policy helps ensure you’re not overpaying and that you have the right protection when you need it most. If you have any questions, please do not hesitate to call us.