Understanding Your Car Insurance Policy
Hey, folks! Just a quick note here: while I used to be a licensed auto and home insurance agent in Virginia back in 2008, I haven’t used this info in quite a while. So, if you’re planning to buy any auto insurance, always double-check the details with your insurance provider. Different companies and even states have varying coverage requirements, so keep that in mind.
Anyway, let’s talk about my car, Mona. We’ve shared some unforgettable adventures like moving to San Francisco, road trips into the desert, and even getting scolded by the military for trying to find Area 51. However, life in New York City isn’t especially Mona-friendly. So, I wondered: is paying $100 monthly for her worth it when I only really drive her to visit my parents in New Jersey?
To cut costs, I tried applying for storage insurance, like I had in Virginia. It’s basically a minimal protection for your vehicle when you’re not using it. Unfortunately, New Jersey only allowed liability insurance, which cost $800, hardly any savings at all! But, well, I could afford it, so I just reinstated my regular insurance.
So, ever been confused by insurance terms? Here’s a quick breakdown:
1. Comprehensive Coverage – Protects your car from non-collision damage, like if it’s hit by a falling air conditioner, or if a squirrel cracks your windshield. It’s also there if your car gets stolen or vandalized.
2. Collision Coverage – This covers you if you hit another car or object. You might consider dropping it if your car’s value depreciates considerably.
3. Liability Insurance – Required in almost all states, it protects you from lawsuits related to car accidents up to your chosen coverage amount.
4. Personal Injury Protection (PIP) Coverage – Coverage for medical bills, lost wages, or even funeral costs after an accident. It’s useful because it pays out regardless of who’s at fault, but it may limit your options for legal action.
5. Uninsured Motorist Coverage – This pays out when an uninsured driver hits you, or in a hit-and-run incident. It’s like a safety net when you can’t get compensation from the other party.
When I was an insurance agent, I had folks asking to insure all sorts of things, including a motorized wheelchair and a parade float. Ah, call center memories.
Ever wondered about average car insurance premiums? The most expensive state is Michigan, with an average of $2,551, while the cheapest is Ohio, with $926. Remember, these averages can vary significantly within states.
The place I live, not far from Newark, NJ, averages a whopping $3,525.43 thanks to tough winters and high crime rates. That said, always shop around for your auto coverage as my own premium is $1,119.65.
Do share your own car insurance stories. Has anyone else felt like going back to horse and buggy days after trying to make sense of their premiums?
Related Posts:
1. Try These Tips When Shopping for Auto Insurance
2. On the Road Mishaps: What Types of Auto Insurance Offer the Best Coverage?
3. Insurance on a Budget: Saving Money with Strategic Coverages