There are many types of auto insurance policies for you to choose from. It is up to you to know what type of policy will provide you with the coverage you need to meet the state's minimum requirements or your bank's needs without going overboard. Buying too much insurance is common and may cost you a lot more than you are expecting. It's important to go over your auto insurance policy every couple of years to ensure that you have exactly what you need, nothing more and nothing less.

What Type of Coverage Do You Need?

PL/PD will provide you with the liability and damage coverage you need to meet your state's minimum requirements. The personal liability coverage will pay for an injured party's medical expenses or paid time off of work. The property damage portion will pay for the repair or replacement of their damaged property.

Collision insurance will pay for the damage to your vehicle if you are involved in an accident. Collision will not cover any other type of damage unless it is related to an accident. You will have to pay for your deductible out of pocket as well. If you choose a lower premium, your deductible will be higher. If you pay higher premiums, your deductible will be much lower, and you won't have to pay much for the repairs to your vehicle.

A comprehensive policy will cover all types of damage, including theft, collision, PL/PD, and any other types of damage as well. This is the type of policy that most banks require when you have a loan on your vehicle. Storm damage is often included in this type of policy as well. Some comprehensive policies may require additional riders for specific types of insurance.

Meeting State Minimum Requirements

In order to meet your state's minimum requirements for insurance, you will need to have at least a PL/PD policy in place for you to drive legally. All states are different when it comes to having a state minimum. You will want to check with your insurance company to find out how much coverage you will actually need. If you are trying to save money and don't have a loan on your vehicle, a PL/PD policy may be just what you need. It won't pay for any of your damages, but it will ensure you are protected if someone else is hurt or their property is damaged.

Complying with Bank Requirements

Having a loan on your vehicle will, in most cases, require that you have a comprehensive policy in place to ensure that the bank will receive its money in the event of an accident. To remain in compliance with the bank's policy, you will be required to carry a comprehensive auto insurance policy for the entire time your loan is in place. If you let your policy lapse, the bank will buy its own policy and add the cost to your loan.

Need help figuring out how much auto insurance you really need? Contact us at East End Insurance Agency. We have a solid reputation for providing the highest quality customer service possible and will answer all of your questions. Whether you have an existing policy or are ready to buy a new one, it's up to you to know all of the details in your coverage. Talking to our experts will help you get the information you need to make an informed choice.