Three Things You Should Know Before Purchasing Auto Insurance

If you’ve never purchased insurance for a vehicle before or if you’re considering changing your policy, it’s important to do some research before making a decision. Since there are various types of Auto Insurance policies, vehicle owners must be sure they have enough insurance without spending money on a policy that’s not necessary. Before speaking with an agent, read the information below to find out three things you should know about automobile insurance.

State Law Requires Liability Insurance
Every state, including Texas, has mandatory laws that require all vehicle owners to carry liability insurance. This type of insurance doesn’t cover damages to a person’s vehicle if they caused the accident. Liability insurance is required because it pays for the damages to the other driver’s vehicle and for their medical bills due to the accident. Liability insurance protects drivers who are in an accident that wasn’t their fault.

Lending Companies May Require Full Coverage Insurance
Individuals who have a car loan through a lending company are often required, by the lenders, to have full coverage insurance on their vehicle. This type of coverage, which includes collision and comprehensive insurance, pays to fix the vehicle when it’s damaged. Collision insurance pays for vehicle damages when the vehicle owner is in a roadway accident. Comprehensive insurance pays for other kinds of damage, such as vandalism or hail damage.

Individuals Pay Lower Premiums With A Higher Deductible
When individuals choose collision or comprehensive Auto Insurance, they’ll have a specific deductible amount based on what they can pay out of pocket if their vehicle becomes damaged. People who choose a higher deductible amount won’t pay as much for their insurance premiums. Individuals should choose their deductible based on the amount they can pay up front for repairs if they have vehicle damage. Individuals are required to pay this amount to fix their vehicle before the insurance company pays for the remainder of the repair costs.

If you need to purchase auto insurance at affordable rates, contact an experienced agent at Harmon Insurance Agency. This Texas company also provides health, property and commercial insurance for their customers.

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