Ally Auto Insurance: What You Need To Know

Owning a car comes with a lot of financial responsibilities, and one of the most important is car insurance. Ally offers a range of vehicle protection services, including vehicle service contracts and premier protection plans, which cover the cost of most vehicle repairs and additional benefits that a manufacturer's warranty might not. This includes towing, roadside assistance, rental or alternate transportation compensation, and trip interruption reimbursement. Ally also offers GAP coverage and leasing protection. Customers can manage their vehicle accounts online, make payments, and view their FICO® Score.

How much car insurance is needed?

The amount of car insurance you need depends on your state's requirements, your net worth, and your specific situation.

State Requirements

In the US, each state has its own car insurance requirements. Most states require a minimum of $25,000 of bodily injury coverage per person and $50,000 per accident, as well as $25,000 in property damage liability. However, it's important to check your state's specific requirements as they may vary.

Net Worth

It's recommended that you purchase car insurance coverage equal to your net worth. This ensures that your policy can cover the full cost of an accident without putting your home and other assets at risk. To determine your net worth, add up all your assets (including investment and retirement accounts) and subtract any debts you owe.

Specific Situation

Other factors to consider when determining the amount of car insurance you need include the value of your car, whether you have a lease or loan, and your budget. Newer and more expensive cars may require more coverage. If you have a lease or loan, your lessor/lender may have specific coverage conditions that you need to meet. Additionally, consider your budget and whether you prefer to pay higher premiums in exchange for lower out-of-pocket costs in the event of a claim, or vice versa.

Optional Coverage

In addition to the required liability coverage, you may want to consider optional coverage types such as uninsured/underinsured motorist coverage, personal injury protection (PIP), medical expenses (MedPay), collision coverage, and comprehensive coverage. These types of coverage can provide additional protection in specific scenarios, such as accidents with uninsured or underinsured drivers, medical expenses, and damage to your vehicle from incidents other than accidents (e.g., hail, theft, fire, flood, animals).

What are the different types of car insurance?

There are several types of car insurance, but most people don’t need all of them. Here are some of the most common types of car insurance and when they might be useful:

Liability Coverage

Liability insurance is a legal requirement to drive a car in most US states. It covers the cost of any damage, injuries, or deaths that you may cause to others in a car accident. There are two types of liability coverage: bodily injury liability, which covers medical expenses, and property damage liability, which covers the cost of repairing damage to other vehicles, buildings, fences, etc.

Personal Injury Protection (PIP)

PIP covers medical expenses for you and your passengers after a car accident, regardless of who was at fault. It may also cover other expenses such as lost wages, funeral expenses, and replacement for services lost due to injury, such as cleaning or childcare. PIP is required in some states with no-fault insurance laws.

Medical Payments Coverage (MedPay)

MedPay helps cover medical bills and other related expenses for you and your passengers, regardless of who caused the accident. While MedPay is required in some states, it is optional in others.

Uninsured/Underinsured Motorist Coverage (UM/UIM)

UM coverage protects you if you're in an accident caused by an uninsured driver or a hit-and-run driver. On the other hand, UIM coverage protects you if the at-fault driver doesn't have enough insurance to cover the costs of the accident. UM/UIM coverage may be required in some states and can also cover damage to your vehicle.

Collision Coverage

Collision coverage pays for repairs to your vehicle if it's damaged in an accident, regardless of who is at fault. While this type of insurance is not required by most states, it may be a good idea to have, depending on the value and age of your car.

Comprehensive Coverage

Comprehensive insurance covers damage to your vehicle caused by something other than a collision, such as hail, theft, fire, flood, or animals. It is often sold together with collision coverage and may be required by your lender or leasing provider.

In addition to these main types of car insurance, there are also various add-ons and extras that you can include in your policy, such as emergency roadside assistance, rental reimbursement, and new-car replacement insurance.

What is the minimum amount of car insurance required?

The minimum amount of car insurance required differs from state to state in the US. Nearly all states require drivers to have a minimum amount of car insurance to drive on public roads legally. This usually includes bodily injury liability and property damage liability but may include other types of coverage, depending on the state.

• Bodily injury (BI) liability: This covers medical expenses related to the other person’s injuries if you cause an accident with another driver or pedestrian. It may also cover your legal fees if the other person sues you for their losses.
• Property damage (PD) liability: Property damage liability coverage is designed to pay towards property damage that you cause to others. For example, if you hit another vehicle on the road, your property damage liability insurance could help pay for the other vehicle’s repairs.
• Uninsured/Underinsured motorist coverage (UM/UIM): Uninsured and underinsured motorist coverage offer financial protection in the event that you get into an accident with a driver who is uninsured or does not have enough coverage to pay for your losses.
• Personal injury protection coverage (PIP): Personal injury protection is a requirement in states that have no-fault laws. If you get into an accident, PIP can pay for your medical bills, lost wages, rehabilitation costs and related expenses, regardless of who caused the accident. This coverage can also be purchased in some at-fault states.
• Medical payments coverage (MedPay): Medical payments coverage may help pay your medical expenses following an accident but is generally considered optional coverage. However, a few states do require drivers to carry medical payments coverage.

The minimum amount of coverage per person and per accident is different depending on your location. To find the exact minimum coverage auto insurance requirements in your state, you can visit your state’s Department of Insurance website or contact your auto insurer.

What are the benefits of Ally Premier Protection?

Ally Premier Protection offers a range of benefits to protect you and your vehicle. Firstly, it provides comprehensive coverage for most vehicle repairs, going beyond the manufacturer's warranty. This includes repairs for mechanical breakdowns and other unexpected issues. With four coverage options, you can choose the level of protection that suits your needs, from fundamental to ultimate protection.

One of the key advantages of Ally Premier Protection is its additional benefits, which include:

• Towing services
• Roadside assistance
• Rental vehicle or alternate transportation compensation
• Trip interruption reimbursement
• Chassis lubrication
• Engine oil and filter changes

Ally Premier Protection also offers peace of mind with its guaranteed asset protection (GAP). This feature ensures that in the event of a total loss, you are protected from the gap between the insurance payout and the outstanding balance on your vehicle. This can help you avoid financial stress and provide valuable coverage.

Furthermore, with SmartLease Protect, you can lease a vehicle with confidence. This benefit covers various lease-end fees, such as excess mileage and wear charges, as well as missing equipment and broken parts.

Ally Premier Protection is available for a wide range of vehicles, including cars, light-duty trucks, SUVs, and crossovers, and can be tailored to your specific needs with customizable deductible options. You can also choose to finance Ally Premier Protection with your monthly vehicle payments or take advantage of interest-free payment plans.

Overall, Ally Premier Protection offers a suite of benefits to keep you and your vehicle safe and secure, providing ultimate peace of mind on the road.

How does one cancel their Ally Premier Protection coverage?

To cancel your Ally Premier Protection coverage, you can call 1-800-631-5590 to cancel your contract. If you haven't made any claims and cancel within 60 days of the start of your contract, you can receive a full refund. If you have made any claims or it's been more than 60 days, your refund will be prorated based on the days or miles of coverage remaining, whichever is least. There may also be a $50 administration fee.

Paid claims prior to cancellation will be deducted from refunds where applicable or required by state regulation or law. Refer to the cancellation terms of your Ally Premier Protection contract for more detailed information.

You can also cancel your existing coverage and purchase a new contract at any time during the manufacturer's New Vehicle Limited Warranty. After the warranty has expired, you may be eligible to purchase an additional contract if your existing Ally Premier Protection vehicle service contract is still valid.

Frequently asked questions