But auto insurance is not a one-size-fits-all kind of thing. That’s why Boca insurance company Seeman Holtz takes the time and effort to help you get the right coverage. It’s also why the Boca insurance company put together this guide to things you should know about auto insurance.
What is auto insurance?
Neil Richardson, writing in USA Today, has a solid general explanation of auto insurance:
“In the simplest terms, insurance is a promise from an insurance company to support you financially in the event that something unfortunate occurs and causes you financial loss or other damage. You pay an insurance company money (your premium) for a policy that details your coverage (who/what is protected and to what dollar amount), and the insurance company is responsible for paying if something happens and you incur a loss (damage to your car, a broken leg, etc.). Insurance companies do this by pooling risk among all the people they insure, collecting premiums from everyone and using those funds to pay claims for those who need it.”
Boca insurance company Seeman Holtz can help you with more than just your auto insurance needs. The company’s experts can also find the right home owners insurance, renter’s insurance, marine insurance and life insurance to suit you.
The types of auto insurance
Liability insurance is required by law in most states and it covers other people affected if you are at fault in a crash. That coverage includes property damage and injury. Some states are no-fault states, which require you to carry insurance to cover your personal injuries, regardless of who caused a crash.
But coverage certainly doesn’t stop at the insurance required by law. Here’s Richardson:
“Collision coverage, which covers damage caused in a crash, and comprehensive coverage, which covers damage from other events including weather (fire, flooding, etc.) as well as theft, are often collectively called full coverage.
“Other coverages include uninsured motorist coverage, which protects you and your vehicle from damage caused by people who don’t have insurance, and medical payments coverage, which covers select costs for injuries you and your passengers sustain in a collision.”
Then there’s comprehensive coverage, which automoblog.net explains:
“Comprehensive coverage is also called ‘Acts of God’ insurance because it covers vehicle damage that is not caused by a car accident. This type of coverage is designed to protect you and your wallet from significant repair bills caused by non-accident related claims.”
Think long and hard before you buy the bare minimum insurance required by law. As Karin Price Mueller writes for Consumerist:
“Sure, buying the minimum amount of coverage allowed by law (or by your lender) will save you money, but it won’t save you anything in the long run if you ever have a claim. For example, if you choose a high deductible policy, you’ll have cheaper premiums. But that also means you’ll have to fork out more cash before you can make a claim. If you have a huge emergency fund, maybe that works for you, but you could spend more in the long-term.”
Boca insurance company Seeman Holtz is well-versed in auto insurance and can help you choose the right coverage and the right insurer.
How rates are determined
Auto insurance rates can vary widely, depending on a number of factors, including where you live, the car you drive and your driving record. As Richardson points out:
“Insurance companies determine what you pay for insurance based on dozens of “rating factors”—all having to do with who you are, where you live, what you drive, and other details of your history, both on and off the road. Everything is about statistics, and insurance companies assign certain levels of risk to each of these factors to gauge the likelihood that you will file a claim.
“For example, teens are considered high-risk drivers because they have so little experience behind the wheel and are statistically likelier to be in an accident — and thus file more claims — than older drivers, so they often pay much more for their premiums.
“Other risk indicators include some obvious ones (like your driving record) and some less-obvious ones (like your ZIP code). There are also certain factors, like your credit score, which only some states allow to be used in determining your rate (it’s prohibited in California, Hawaii and Massachusetts).”
At Boca insurance company Seeman Holtz, insurance experts can help you find the best deal for the best coverage.
Rates vary by insurer
You’ve seen the advertisements urging you to shop around for the best insurance deals. As Insurance.com points out, there’s a reason for that:
“Car insurance rates differ significantly from one insurance company to another. That’s because each insurance company uses its own formula to assess risk and decide what you pay for coverage. This means no two insurers will have identical prices for the same policy — often, the difference is hundreds of dollars. So, if you don’t compare rates, you can wind up overpaying.
“Auto insurance is a highly competitive business and one of the most effective ways to reduce insurance costs is simply to shop around,” according to Jeanne Salvatore, senior vice president of the Insurance Information Institute. “Drivers should look for an insurance company that will provide a good price along with excellent service.”
Boca insurance company Seeman Holtz has a network of insurers it can turn to so you get the best plan for you.
How Boca insurance company Seeman Holtz approaches auto insurance
“We will start by analyzing your current auto insurance policy and offer independent, objective advice. If in fact changes need to be made, or if you need a brand new policy, we will secure quotes from the best national auto insurance carriers across the nation to make sure you receive the most extensive coverage at the best rates possible.”