Which Kind of Auto Insurance Is Best for You?
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A first-time auto insurance buyer might find the process daunting. A few types of coverage are mandatory, while others are optional. Then there is the question of how much coverage is really needed. If you don’t have the right coverage, you can end up paying higher premiums or face expensive repair bills.
It is best to arm yourself with information if you want to increase your confidence. If you’re getting your first Auto insurance Kennewick or insuring a newly licensed teen, here’s what you should know:
The Liability Of Third Parties
Anyone who is responsible for injuring or killing another individual or causing property damage not covered by direct compensation for property damage (such as if you hit someone’s fence) needs liability insurance coverage. Own cars are not covered by this insurance. It is legal to have a limit of $2,000,000 in Third Party Liability insurance, but we recommend having at least $200,000 of coverage. The minimum coverage may not be enough in the event you or a user of your car is sued, which means that you could lose your home, as well as other assets. You can feel more at ease if you have adequate coverage in case of a serious accident.
Property Damage Direct Compensation
DCPD coverage is mandatory in Alberta for all drivers. Your vehicle will be covered for damage resulting from a collision with another insurer (including loss of use and property in the vehicle) if you are not at fault.
Collision
If you were responsible for a collision, you would need this coverage to repair the damage to your vehicle. In deciding whether or not to purchase Collision coverage, take into consideration the value of your vehicle, the deductible you will need to pay before your insurance takes effect, and the amount you will be expected to pay annually to add Collision to your coverage. When your teenager is driving an old vehicle worth $1,500 and your deductibles and added premiums to include collision come to $2,000, you’re better off without the coverage. However, Collision coverage can be worthwhile if your vehicle is worth significantly more.
Comprehensive
You can choose this optional coverage for damage to your own vehicle, but it differs from Collision because it covers damage caused by theft, vandalism, fire and hailstorms, which Collision does not cover. Take into account the value of your car, the deductible, and the additional premium when deciding whether or not to purchase Comprehensive.
Obtain A Quote From An Insurance Expert
Choosing the appropriate coverage for your needs can be difficult without the help of an experienced insurance advisor. A representative from AMA Insurance is available to meet in person or to discuss your insurance needs by phone – whatever suits you best.
In order to ensure they understand your unique needs and any discounts you qualify for, AMA Insurance advisors will ask you questions about your car, how frequently you plan to use it, your driving history, etc.
