Full Guide To Auto Insurance’s Benefits And Drawbacks

Advantage Auto Insurance

As your independent agent, we are here to support you through all life’s transitions – such as starting a business, getting married, adding a teen driver or insuring your retirement condo.

Our quote system can help you save money on car insurance, regardless of your driving record. Read on to discover six essential coverages that can be included in your policy to safeguard your assets and reduce costs.

1. Comprehensive Coverage

Your insurance costs are determined by a variety of factors, such as the age and mileage of your vehicle, driving record, where you live, financial situation and more. Some elements are out of your control while others reflect lifestyle decisions which you have the power to modify.

Comprehensive coverage protects your car against damage caused by events beyond your control, such as hail, fire, flood, theft and vandalism. It even covers animal-caused damage like deer. Comprehensive coverage can be especially beneficial if you drive an older vehicle that has lost much of its value over time.

2. Collision Coverage

Liability insurance only pays when you are at fault for an accident, while collision coverage pays to repair your car no matter who caused it.

Comprehensive insurance covers any auto damage you may sustain, such as vandalism or natural disasters. With this coverage, after paying a deductible, you can fix or replace your vehicle up to its actual cash value.

When leasing or financing your car, the financial company has the legal right to require that you carry comprehensive and collision insurance until the vehicle is paid off or returned. This is done in order to safeguard their interest in the automobile.

3. Medical Payments

Medical Payments coverage, commonly referred to as MedPay, is an auto insurance add-on that pays for medical expenses incurred by you and your passengers following a crash.

MedPay typically covers you, your family members and anyone else in the car that you have insured, regardless of who caused the accident.

It covers ambulance fees and emergency services, as well as specific diagnostics and treatments.

It can be a great way to cover out-of-pocket medical costs that might leave you with gaps in your health insurance. But it’s essential that you consider whether this coverage is right for you.

4. Uninsured Motorist Coverage

Uninsured Motorist Coverage can provide financial relief in the event of a car accident caused by an uninsured motorist. While this coverage is optional in some states, it should be taken into account by all drivers regardless of driving history.

Uninsured Motorist Coverage comes in two main forms, one for bodily injury and the other for property damage. Uninsured motorist bodily injury (UMBI) pays medical expenses that arise as a result of an auto accident while uninsured motorist property damage (UMPD) pays repairs to your vehicle if an uninsured driver causes a collision. Split limit plans provide separate limits for each, while combined single limit policies offer one policy level that covers both.

5. Rental Reimbursement

If you’re unable to drive your own vehicle due to repairs after a covered accident, rental reimbursement can help cover the cost of a replacement car. This coverage is typically included on most insurance policies at an affordable annual cost of around $35 per year.

If you depend on a vehicle daily or don’t have another means of transportation, this type of coverage could be beneficial to consider. Furthermore, it’s an excellent way to get back on the road quickly after an accident or other circumstance where temporary access to a car may be necessary.

6. Emergency Roadside Assistance

Roadside assistance can provide a fast and affordable way to get back on the road if your car breaks down. Whether you have a flat tire, need fuel or are locked out of your vehicle, having access to this kind of assistance makes all the difference in getting safely back on the road.

For car insurance coverage, your auto insurer typically provides the cheapest option. Prices may differ by state, but on average it’s less than $20 a year per car.

Disadvantages of Auto Insurance

A reliable car insurance policy shields you from unexpected damages and injuries in case of an accident. It also helps you save on hidden fees when filing a claim. Nevertheless, there are some drawbacks to auto insurance that may cause frustration and irritation.

One major drawback of auto insurance is that you may need to pay a deductible amount on each claim made. This amount could amount to quite a substantial sum of money which not everyone may have available.

1. Lack of Coverage

Most states require drivers to purchase auto insurance, which provides a variety of coverages. Liability and property damage protection are the two most popular, while uninsured/underinsured motorist coverage and medical payments may also be included.

However, lapses in coverage can be costly and difficult to restore. Even if you can reinstate a canceled policy, an extended gap could leave you vulnerable to higher rates or legal repercussions from your car insurer – particularly if you’re considered high risk. To find the best deal for your needs, get quotes from multiple insurers; and if possible, look into companies specializing in high-risk driving.

2. Expensive

The cost of your premium can have a major effect on your finances. Families prioritize having the best car insurance possible, so if budgeting is an issue for you, shopping around for lower rates and discounts from existing providers is the best approach to save money. When comparing quotes, be sure to factor in gas, repairs, maintenance as well as any vehicle depreciation due to loss. Furthermore, look out for companies offering free quotes so that you can compare their offerings against those offered by competitors.

3. Convenience

When selecting car insurance, there are a few factors to take into account. Most importantly, determine which coverages are most important to you. There are three basic types of auto coverage: bodily injury liability, collision and comprehensive. Typically, you’ll pay an annual premium to the insurance company in exchange for coverage; the amount depends on how much coverage you request and which deductibles you select.

Advantage offers a selection of policies tailored to fit your requirements. Our quote system lets you compare multiple companies and get the best rate possible. Furthermore, we provide optional protections that will give you added peace of mind.

4. Coverage for All Vehicles

Auto insurance often lacks coverage for many drivers. Fortunately, advantage insurance offers a range of vehicle protection plans tailored to individual needs; including the driver-friendly Preferred Protection plan, plus-sized Prime service contract and high-tech Endurance plan. Of these three, the plus-sized one stands out as it provides comprehensive and collision coverage up to 200,000 miles on vehicles over 15 years old with unlimited mileage – at an affordable cost! Ask your agent for details; depending on your individual situation you could save hundreds of dollars annually in premiums!

5. Lack of Flexibility

Most states require drivers to have auto insurance. This coverage can be divided into two main categories: liability and property damage. Liability coverage protects you in case of an accident that causes injury to others.

On April 13, Michigan’s Director of DIFS issued a Bulletin asking insurance carriers to be flexible during COVID-19 when it comes to payment for premiums. This includes granting insurance companies a 60 day “grace period” for past due premiums, waiving late fees, allowing people to suspend certain types of coverage without losing it, and considering alternative payment plans.

6. Expensive

One of the most expensive components of owning and maintaining your own insurance policy is premiums. Sometimes, this cost can even surpass that of your car’s loan or lease payment! But with some smart shopping and phone calls you can save a bundle. The best way to find the lowest rate is to shop around and compare insurers. A few minutes on a smartphone will reveal hundreds of insurers competing for your business; if you have more time on hand, visiting their websites may help reveal what they charge for policies.

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