Can Do Auto Insurance: Easy, Fast, Affordable

Auto insurance is a necessity for drivers and vehicle owners. It provides financial protection in the event of an accident, vehicle damage, or theft. Auto insurance is required by law in most states and helps cover the costs of repairs, replacements, and medical bills. When choosing an auto insurance policy, it is important to consider your needs, budget, and the level of coverage required by your state. Insurance companies offer various coverage options, including liability, collision, and comprehensive insurance, as well as add-ons like roadside assistance and rental reimbursement. By comparing quotes from different insurers and taking advantage of discounts, drivers can find affordable auto insurance that suits their specific needs.

Liability insurance

There are different types of liability insurance, including personal liability, workers' compensation, and commercial liability. Personal liability insurance policies are purchased primarily by high-net-worth individuals (HNWIs) or those with sizeable assets. However, this type of coverage is recommended to anyone with a net worth that exceeds the combined coverage limits of other personal insurance policies, such as home and auto coverage.

Commercial general liability insurance, also known as comprehensive general liability (CGL) insurance, provides insurance coverage for lawsuits arising from injury to employees and the public, property damage caused by an employee, as well as injuries suffered by the negligent action of employees. The policy may also cover infringement on intellectual property, slander, libel, contractual liability, tenant liability, and employment practices liability.

In the context of auto insurance, liability coverage is required by law in most states. It covers third-party bodily injury and property damage liability claims if the insured is at fault in an accident and injures another driver or their passengers or causes damage to someone's property.

Collision insurance

When choosing collision insurance, you will need to decide on the amount of your deductible, which is the amount you must pay out-of-pocket before the insurance company covers the remaining costs. A higher deductible will result in lower monthly premiums, but it also means you will have to pay more upfront if you need to file a claim. Collision insurance can be expensive, but you can save on premiums by choosing a higher deductible.

It's important to note that collision insurance does not cover damage due to theft or vandalism, and it also does not cover damage that is paid for by another driver's insurance policy if they are at fault. Comprehensive auto insurance is a separate type of coverage that protects against events that are typically out of your control, such as natural disasters or carjacking. In contrast, collision insurance covers events that are within a driver's control.

By adding collision insurance to your auto insurance policy, you can drive with peace of mind knowing that your vehicle is protected in the event of an accident. It helps you avoid paying high out-of-pocket costs for repairs and ensures you receive compensation if your vehicle is deemed a total loss.

Comprehensive insurance

The cost of comprehensive insurance varies depending on factors such as the age, make, model, and mileage of your vehicle, as well as your driving record and the chosen deductible amount. According to the National Association of Insurance Commissioners (NAIC), the average annual comprehensive insurance premium in the US in 2019 was $171.87, with rates differing significantly across states.

Uninsured motorist insurance

While it may seem like a remote possibility, the reality is that a significant number of drivers on the road are either uninsured or underinsured. According to the Insurance Research Council, approximately one out of every eight drivers in the US does not have insurance. This means that if you're involved in an accident with such a driver, you could be left footing the bill for repairs and medical expenses. Uninsured motorist insurance ensures that you are protected financially and can receive compensation for your losses.

The requirements for uninsured motorist insurance vary from state to state. Some states, such as Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, West Virginia, Wisconsin, and the District of Columbia, mandate that auto insurance policies include uninsured motorist coverage. In other states, it may be offered as an optional add-on to your policy. It's important to check with your state's department of motor vehicles to understand the specific requirements in your area.

Understanding the Difference: Uninsured vs. Underinsured Motorist Coverage

It's important to distinguish between uninsured and underinsured motorist coverage. Uninsured motorist coverage protects you when the at-fault driver has no insurance at all. On the other hand, underinsured motorist coverage comes into play when the at-fault driver has insurance but their policy limits are insufficient to cover the full extent of the damages or injuries they have caused. In some states, both types of coverage are required, while in others, only one or neither may be mandatory.

How to File a Claim

If you're involved in an accident and need to file a claim, the first step is to check for injuries and call for emergency medical assistance if necessary. Contact the police to respond to the accident and gather as much information as possible. Obtain names, addresses, and phone numbers of witnesses, and try to get the license plate number of the other vehicle involved. Take photographs of the accident scene, capturing vehicle positions and any visible damage. As soon as possible, file a claim with your insurance company, providing all the information and documentation you have gathered. Keep in mind that some insurance providers have time limits on filing uninsured claims, so act promptly.

Medical payments insurance

Medical payments coverage, also known as MedPay, is an optional add-on to auto insurance policies in most states. It covers the cost of medical expenses for the driver and their passengers if they are injured in a car accident, regardless of who is at fault. This includes hospital visits, surgeries, nursing services, ambulance fees, health insurance deductibles and co-pays, and dental procedures. MedPay limits typically range from $1,000 to $10,000, and it is a good idea to carry coverage equal to your health insurance deductible.

MedPay is not offered in every state, but in states that don't offer it, personal injury protection (PIP) coverage is usually available instead. PIP is no-fault insurance that covers medical expenses and lost wages for the driver and their passengers if they are injured in an accident. PIP is required in some states and optional in others.

Auto liability insurance, which is required by law in most states, covers the other driver's property damage or bodily injuries if the policyholder is found at fault in an accident. However, it generally won't cover medical expenses for the policyholder or their passengers if they are injured. Therefore, it is a good idea to add medical payments coverage to an auto policy to ensure that medical expenses resulting from an accident are covered.

Frequently asked questions