A lot of people have a problem with understanding how insurance works and what your fine print actually means when you get it annually. Most would just accept the fact by thinking that it’s something necessary to pay in order to not be punished by law. However, you need to have a good understanding of your policy in order to make reasonable claims. When the time comes that you need to file one, it will only make things difficult if you have to look for someone to walk you through the process.

state auto insurance

Most are concerned about getting affordable car insurance without really knowing how companies compute premiums and deductibles. There are ways to lower the quotes. If you are knowledgeable about how the numbers are calculated, you will also be aware of how to lower them simply by doing the opposite. It might sound simple, but a lot of insured people still make lots of conceptions about their policies. Read through below and find out what you need to know about state auto insurance.

Not All Insurance Covers Everything

You might have heard about different insurance names and thought it didn’t really matter which one you chose. This can be very dangerous. Imagine if you get into a situation where you need to pay for the car repair and medical bills of a person and your insurance actually only covers property damages. Where are you supposed to get money to pay for the hospital and medicine?

state auto insurance

Some also believe that a dent in the car due to bumping the garage door can be covered by liability insurance. Liability may mean taking responsibility of your actions, but it only refers to accidents that involve a victim – which in this particular case isn’t present.

Multiple Driving Offences Can Affect Your Premiums

Have you driven in a no driving zone during one of your overseas trips? You don’t have to worry about your rental car insurance that easily. Most companies let you get away with one ticket, especially if it’s just a temporary policy. However, don’t do it very often. The more offences you make, the less reliable of a driver you appear. It pays to be careful when driving. The premiums won’t increase immediately within the same year, but you can expect a price hike for the following one if you are getting more tickets.

Only Items Attached to the Vehicle are Insured

state auto insurance

In a robbery situation, you lost your bag, gadgets and other stuff left in the car. You want to file a claim to replace them – not possible. The general rule in car insurance is that only objects attached to the vehicle or the vehicle itself is the only thing that can be financially supported and nothing else. Personal belongings that just happened to be inside it won’t matter. Even car theft cases won’t give you the right to ask for replacement of items inside. The care is another story though. This is why it is very important to have an anti-theft system.