Key Things to Know About Car Insurance Policies
Car insurance is a contract between the vehicle owner and an insurance company that provides financial protection against losses resulting from accidents, theft, or damage. Understanding the essential aspects of car insurance helps in making informed decisions when choosing a policy. JNR Insurance Agency provides car insurance in Brooklyn, Jersey City, Dumbo, NY, Bushwick, Williamsburg, NY, Prospect Park, NY, and surrounding areas.
Types of Coverage
Car insurance policies typically offer several types of coverage:
- Liability Coverage: Covers bodily injury and property damage that you cause to others in an accident. This is usually mandatory by law.
- Collision Coverage: Pays for damage to your own vehicle after a collision, regardless of fault.
- Comprehensive Coverage: Covers damage to your vehicle caused by non-collision events such as theft, vandalism, natural disasters, or hitting an animal.
- Personal Injury Protection (PIP) or Medical Payments: Pays for medical expenses for you and your passengers, sometimes including lost wages.
- Uninsured/Underinsured Motorist Coverage: Protects you if you’re involved in an accident with a driver who has insufficient or no insurance.
Policy Premiums
Your insurance premium—the amount you pay periodically—depends on factors such as your driving history, age, type of vehicle, location, and the coverage limits selected. Maintaining a good driving record and choosing higher deductibles can help lower premiums.
Deductibles
A deductible is the amount you pay out of pocket before the insurance coverage kicks in. Higher deductibles typically result in lower premiums but more expenses in the event of a claim.
Policy Exclusions
Always read the fine print to understand exclusions—situations where the insurance will not cover losses. Common exclusions include intentional damage, racing, or using the vehicle for commercial purposes without proper coverage.
Claims Process
In the event of an accident, report the incident promptly, document damages, and provide necessary evidence to the insurer. Timely and accurate reporting helps ensure a smooth claims process.
Selecting the right car insurance policy ensures peace of mind and financial protection. Compare policies carefully and consider your needs before purchasing. Should you have any questions, feel free to contact us.