Finding a cheap auto insurance policy for your needs is never an easy undertaking. Many car owners are confused by common misconceptions and unfamiliar terms. Not to mention the mushrooming car insurance agencies, all claiming to offer the cheapest policies around, even when they don’t really mean it.
Either way, this shouldn’t prevent you from working with a cheap auto insurance provider. It simply narrows down to finding accurate answers to some of your burning questions, and you’re good to go. Below are a few important things you probably didn’t know about auto insurance coverages.
Difference Between Collision and Comprehensive Coverage
This is by the biggest area of confusion when it comes to auto insurance. Many drivers, it seems, don’t understand what they’re purchasing. As a good starting point, comprehensive insurance coverage offers protection against theft and damage caused by any incident other than a collision, such as fire, flood, vandalism, falling rocks or trees.
Things tend to be different with collision coverage since it reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object. It also covers damage to potholes or from rolling your car.
Personal Auto Insurance Doesn’t Cover Using Your Vehicle for Business
Most car insurance policies exclude driving a personal vehicle for business purposes. Many insurers will cancel your policy if they discover you’re doing this. Take it upon yourself to talk to your insurance company about getting an ‘endorsement’ to your policy for any business you might use your car for.
Ride-share drivers boast good coverage from the ride-share company when they have a customer in the vehicle. It’s only when they are driving around waiting for the next rider that they’re at risk. The added coverage offered by a business using endorsement is reasonable.
Now that you have slight insights into what auto insurance coverages entails, it might be the ideal time to look into ways of enjoying money-saving benefits on your policy. Luckily, you can never run out of options when in dire need of a cheap auto insurance agency to leverage.
