Car Insurance

Having the Right Car Insurance Policy

Having the Right Car Insurance Policy

When it comes to your car, it’s important that you have the right coverage. It can make the difference between a claim and not filing one at all.

Your policy should be clear and easy to understand. It should also explain your rights after an accident. And, it should include a claims procedure that you agree to follow.

Comprehensive Coverage

Comprehensive Coverage (also referred to as “Other Than Collision”) pays out for damages your car sustains from things that are outside of your control. This can include things like vandalism, fires, theft, hail and more.

Most lenders and car leasing companies require comprehensive coverage if you finance or lease a vehicle, and they may also require it when you pay off the loan in full. This coverage can protect your remaining loan balance after you lose your car in a covered claim, or replace it with something similar if it’s stolen.

Comprehensive coverage costs more than collision insurance, but it is typically worth the premium if the value of your car is high enough to offset the deductible. For example, if your car is worth $10,000 and you have a $1,000 deductible, the maximum payout from comprehensive would be $9,000.

Collision Coverage

If your car is damaged in a collision, this insurance will pay to fix or replace the vehicle, minus your deductible. Collision coverage also helps pay for damage if your vehicle is involved in a hit-and-run accident or an accident caused by an uninsured or underinsured motorist.

You can choose from several deductible options to cover the cost of your repairs or replacement. You can also opt for a higher deductible to save more money on your premium in the long run.

The deductible you choose should be based on the value of your vehicle and your ability to cover it if it is stolen or totaled in an accident. It can be difficult to estimate the actual cash value of your car, so a lower deductible may be more worth it in some cases.

Many lenders and lessors require you to carry collision insurance on your car. If you don’t, your lender may buy force-placed insurance for you, which will cost more and offer much less protection.

Uninsured/Underinsured Motorist Coverage

Having the Right Car Insurance Policy is key to protecting yourself, your family and your vehicle. Having the right car insurance policy can help you feel safe on the road, protect your wallet from high medical bills and cover damages caused by an uninsured or underinsured driver.

In some states, it is mandatory to have uninsured motorist coverage in addition to liability coverage. It can help cover you and your passengers in the event of an accident with an uninsured or underinsured motorist, as well as hit-and-runs.

The right amount of uninsured motorist coverage is a decision best made with your Farmers agent. They can discuss the state-required minimums and recommend coverage levels that best meet your needs.

Medical Payments

When it comes to car insurance, having the right policy can help you get through an accident without a major financial setback. Medical payments, also known as MedPay, can be a critical piece of this coverage.

When you purchase this type of protection, it kicks in quickly to pay your health insurance deductible and copays, up to the maximum amount on your policy. Plus, it covers other out-of-pocket costs that your health plan may not cover, including ambulance fees, chiropractic services, dental care and prosthetics.

While it is optional in many states, medical payments coverage is important to have if you are a driver who often travels and needs coverage that pays for medical expenses after an accident. It can save you a significant amount of money in the long run, as medical costs can be astronomical after an accident.