Understanding Auto Insurance

Carrying minimum levels of auto insurance coverage is a legal requirement in California. Beyond maintaining legal compliance, this type of insurance policy is also crucial for drivers and vehicle owners to protect themselves financially after an accident or other covered incident. Even the safest drivers need adequate coverage.

The Stewart Kriese Insurance Agency uses decades of experience in the insurance industry to help drivers in the Modesto and Oakdale area assess and address their auto insurance needs.

How Does Auto Insurance Work?

Auto insurance policies are intended to protect policyholders and other parties after a traffic accident. For most drivers, the following coverages are recommended:

·        Collision coverage—This type of coverage can reimburse you if your vehicle is damaged in a collision with another automobile or an object.

·        Comprehensive coverage—This coverage protects your vehicle from losses and damages arising from incidents other than collisions, such as fires, theft, vandalism, severe weather and falling objects, such as rocks or trees.

·        Liability coverage—This coverage provides financial assistance if you are liable for another party’s damages and losses, including:

o   Bodily injury—If an accident for which you are responsible results in someone else being injured or killed, your insurance may assist with the resulting medical treatment, lost income and funeral costs.

o   Property damage—If you are responsible for an accident that damages another party’s vehicle or property, this coverage may help pay for repairs or replacement costs.

·        Uninsured/underinsured motorists—If an uninsured or underinsured motorist is found to be responsible for injuries or property damage, this coverage can help make up for their lack of coverage by covering medical and repair costs.

In addition to knowing what types of damages and losses will be covered by your auto insurance, it’s also necessary to understand who is included in your coverage. Most policies include protection for the policyholder and other documented family members.

Generally, standard auto coverage is applicable only when vehicles are used for personal reasons. Additional coverage must be obtained if a vehicle is being used for business purposes, including for deliveries or rideshare services.

How Much Does Auto Insurance Cost?

Like most insurance coverage, the cost of auto coverage can vary significantly. Providers must weigh several factors, such as the following:

·        Age

·        Driving record

·        Location

·        Use patterns (e.g., how often you drive, how far you regularly travel)

·        Vehicle details (e.g., value, make, model)

·        Policy details (e.g., coverage limits, deductibles)

·        Claims history

Specific trends that may be beyond your control could also play a role in determining your premiums, including frequency of auto insurance fraud, average costs related to medical care, litigation and car repair, and weather trends.

Get the Right Coverage

Auto insurance is a vital type of coverage for anyone who owns and operates a motor vehicle. Without proper protection, even a single accident could have devastating financial consequences.

Fortunately, the insurance experts at Stewart Kriese Insurance Agency are ready to help you assess your insurance needs and build an auto policy that meets your needs. Contact us today to get started.