Important Facts You Should Know About Auto Insurance

1
Important Facts You Should Know About Auto
Insurance
2

• Driving is a privilege, not a right. Anyone that
  owns or operates a vehicle on public roads needs
  to understand the risks involved and take steps
  to protect themselves if something goes wrong.
  Auto insurance is one of the primary ways to do
  that, as it helps you recover from financial loss
  after an accident. But what kind of auto
  insurance do you need in Louisiana and how much
  coverage do you need? It depends on your
  individual circumstances. There are different
  types of auto insurance policies with varying
  degrees of coverage. You'll want to understand
  which ones will best suit your needs.

3
Auto Insurance Basics

• If you are like most people, you dont read the
  fine print. You just want to know the bottom
  line. Like many people, you probably dont have a
  clue what auto insurance is all about. The best
  way to begin understanding auto insurance is to
  know the different components of a standard
  policy. Premium - The amount of money you pay for
  your monthly insurance coverage. Deductible - The
  amount you pay out-of-pocket for each claim you
  file. Your deductible will vary according to your
  insurance company and policy type. Coverage - The
  types of risks that an insurance company is
  willing to cover for you. Liability - The amount
  of money you agree to pay other people if you
  cause an accident.

4
What is Collision Coverage?

• If you are in a car accident that is your fault,
  collision coverage will help you pay for the
  repairs to your car. If you have comprehensive
  and collision coverage on your policy, the
  company will pay for damages to your car no
  matter who is at fault. Collision coverage will
  only pay if you are at fault. The more collision
  coverage you have, the less your out-of-pocket
  expense will be when filing a claim. The minimum
  amount of collision coverage needed is based on
  the value of your car.

5
What is Comprehensive Coverage?

• Comprehensive coverage pays for damages to your
  car regardless of who is at fault. If your car is
  stolen, vandalized, floods, or is hit by an
  animal, this coverage will pay for repairs. While
  this coverage helps protect you from some risks,
  it wont pay for everything. It wont cover
  regular wear and tear, ongoing issues with your
  car like a leaky roof, or defects in your car
  that were there before the policy was started.
  The amount of coverage you need will vary
  depending on the current value of your car.

6
What is Property Damage Liability Coverage?

• If you are in an accident that causes damage to
  another persons car or property, this coverage
  will help you pay for the costs associated with
  that accident. The amount of coverage you need
  will vary depending on the state you live in and
  the type of coverage you have on your policy.

7
What is Uninsured and Underinsured Coverage?

• If you are in an accident with an uninsured
  driver, this coverage will help you pay for the
  damages associated with the accident. If you are
  in an accident with an underinsured driver, this
  coverage will help you pay for the difference in
  costs between the amount the other drivers
  insurance paid and what your damages were.

8
How Much Auto Insurance Do You Need?

• Insurance companies use a formula to determine
  the amount of insurance you should have. This
  formula factors in the minimum amount required by
  law, your current assets, and the value of your
  car. Underinsured Motorist Coverage has a direct
  impact on the amount of insurance you should
  have. The more UM/UIM coverage you have, the more
  you should have overall. The less UM/UIM coverage
  you have, the less you should have overall. While
  calculating the right amount of insurance can be
  a bit complicated, its important to know how
  much coverage you need.

9
Conclusion

• Auto insurance is a way to protect yourself from
  financial loss in the event of an accident. There
  are different types of auto insurance policies
  with varying degrees of coverage. You'll want to
  understand which ones will best suit your needs.
• To know more about Bonano Insurance, visit
  https//www.bonanoinsurance.com/