When you own and operate a car, you have to have a car insurance policy on it. And we’re not just saying that because it’s in your best interest – it’s actually illegal to own and operate a vehicle without insurance. However, here at Toyota of N Charlotte, we know how confusing it can be to navigate car insurance policies, figure out what you’re paying for, and choose the right one for your drive time needs. That’s why we’re taking the time to break things down and explain them to you.
What is car insurance for?
The main purpose of car insurance is to cover you and your vehicle if you get into an accident or collision. Without insurance, you would end up paying all medical expenses and repairs out of pocket, which can be financially devastating. When you have an insurance policy in place, it prevents you from having to foot the bill yourself. There are quite a few options and further, quite a few different elements to consider when shopping, so here’s the basic breakdown.
Car insurance offers different levels and types of coverage to pay for different things in the case of an accident. Here are the main categories:
- Bodily Injury and Personal Property Liability policies cover the OTHER driver if you’re at fault in an accident. It pays for both their medical expenses (driver and passengers) as well as the damages to their car. But remember, this only goes into play if you’re at fault.
- Collision coverage pays to repair your vehicle’s damage OR to pay you out if your vehicle is totaled after an accident.
- Comprehensive coverage takes care of things like hit and run accidents where another driver’s policy can’t pay for your damages, as well as natural disasters. This is the part of your policy that also covers windshield repair and replacement if you live in a state like Florida, where your windshield can be replaced or repaired for free.
- Personal injury insurance covers injuries that you sustain in an accident or collision.
As noted, there are different levels of coverage for each of these categories, so make sure you read through the policy thoroughly and choose the right amount of coverage for you.
The basics of car insurance policies
Another thing to consider when shopping for a car insurance policy is the premium. How much does the policy cost, and what are the payment options? Some insurance companies will let you make payments each month, while others recommend that you pay six months at a time. Some may even give the option of paying for a year up front in full. Be sure to ask if paying for six or twelve months at a time will get you a discount.
And remember, the premium you pay is individualized to your situation. Car instance companies analyze a variety of factors to figure out how much your policy will cost, including:
- Driver’s age
- Marital status
- History of insurance coverage
- Driving and accident histories
- Mileage driven annually
- The N Charlotte Toyota that you’re insuring
- Where you live
- What you’re using the car for (work, commuting, etc.)
These factors combine to determine how much you’ll pay.
Have more questions about insuring your N Charlotte Toyota or want to get shopping? Call Toyota of N Charlotte today at (704) 875-9199.