For many young people, there comes a time to take that next big step: we have to adult. But, the trouble with that is sometimes we don’t quite know how to.
Like auto insurance, for example. It’s almost time for me to get off my parents’ insurance and onto my own. But, I don’t know anything about the coverage I have, let alone the coverage I need. If you’re in that same boat – or you have a kid in that same boat – keep reading.
Since I’m an intern at an insurance company, I thought I’d tap into some of the resources here at COUNTRY Financial. So, I reached out to Dan Schick – a super smart analyst in our auto insurance area – to get the low down on auto insurance.
Here’s what we chatted about:
Why would someone need auto insurance? Auto insurance is required in most states for all drivers. But, more importantly, auto insurance helps protect you if you get into an accident. For instance, if you hit another car, your policy can kick in to help cover costs to repair your car and the car you hit; medical expenses to you, your passengers or the other driver; and even legal costs if there’s a lawsuit. Without auto insurance, that would all be out of pocket. Yikes.
Do all auto policies cover everything? No. Not all policies are created equal. While a standard policy can include a lot, there are still things not initially covered; like comprehensive, collision or liability coverage on your own car. Unsure of what those terms mean? We broke it down for you.
A few other things not covered in standard auto policies are weather-related damage to your car, hitting an animal or parked car, and cracked windshields. Additional coverage is needed to financially cover those damages.
How much coverage do I need? Each state has a different minimum coverage requirement, and although it may be cheaper upfront, if you’re in an accident the out-of-pocket costs may be devastating to your bank account. It’s best to talk to a rep to make sure you have the proper protection that’s best for you.
My chat with Dan really opened my eyes to how little I knew about auto insurance. Thankfully, there are experts out there to help all of us take simple steps to better understand our coverages to ensure we’re properly protected.
Interested in learning even more? We created this interactive 7-question quiz to test your auto insurance knowledge. Make sure you comment below with your score!
Auto insurance policies issued by COUNTRY Mutual Insurance Company®, COUNTRY Casualty Insurance Company®, and COUNTRY Preferred Insurance Company®, Bloomington, Illinois.