1. Coverage Types

There are four main types of auto insurance coverage: liability, collision, comprehensive, and uninsured motorist. Each type of coverage protects drivers in different ways. The main one you should have is liability coverage, which covers damage to other people and property if you're at fault in an accident. The other three are optional but can provide additional protection.

2. Minimum Coverage Requirements

Most states require drivers to have auto insurance, but the minimum coverage requirements vary by state. Make sure you know your state's auto insurance requirements before you hit the road. The state with the most permissive car insurance requirements is New Hampshire, as drivers are only required to have liability coverage. Other states have more stringent requirements, such as Ohio.

3. Discounts

Car insurance companies offer a variety of discounts that can save you money on your premium. Some common discounts include good driver, safe driver, and multi-policy savings, among others. Be sure to ask your auto insurance company about all the discounts they offer so you can take advantage of them.

4. Coverage Limits

Most car insurance policies have coverage limits, which is the maximum amount the auto insurance company will pay for damages. Coverage limits vary by state and insurance companies, so you should know your coverage limits before getting into an accident. You can typically find your coverage limits in your auto insurance policy.

5. The Right Car Insurance for You

Everyone doesn't need the same auto insurance coverage. Some people may only need liability coverage, while others may need all four types of coverage. It all depends on your driving habits, the car you drive, and your circumstances. Talk to your car insurance agent to figure out what type and amount of auto insurance coverage is right for you.

Auto insurance is a vital safeguard for drivers. If you're involved in an accident without insurance, it can cost you a lot of money. Make sure you're familiar with your state's auto insurance requirements and talk to an agent to get the proper coverage. Contact Monument Insurance to learn more today!