When it comes to auto insurance, it’s important to understand what you’re purchasing and how it can benefit you in the event of an accident. With so many different policies and coverage options available, it can be challenging to determine which policy is best for you. To make sure you’re getting the right coverage for your needs, here are five important questions to ask before buying auto insurance:

1. Leased or Financed?

Figuring out if your car is financed or leased is important in understanding the type of auto insurance coverage you need. If your car is financed, you must carry comprehensive and collision coverage, as your lender usually requires. 

If you are leasing your car, you may only need to carry a liability policy to meet the lease agreement requirements. Knowing if your car is financed or leased is also important for determining the car's value, which is a factor in calculating your insurance premium.

2. Is Flood Damage Included in My Insurance Policy?

Whether or not your auto insurance policy covers floods depends on the type of policy you have. Generally, comprehensive auto insurance policies cover damage due to floods, but liability-only policies do not. 

If you live in an area prone to flooding, consider purchasing comprehensive coverage to ensure your vehicle is protected in case of a flood. It is also important to ensure that you know the specific coverage limits and deductibles in your policy.

3. Does It Cover Other People Who Drive My Vehicle?

Your auto policy covers the vehicle you own, but it may or may not cover other drivers of your vehicle. Depending on the circumstances and the type of policy you have, your policy may provide coverage for a family member or for someone else who borrows your car. 

Understanding the extent of the coverage and any limitations that may exist before allowing someone else to drive your car is important. It is also important to check with your insurance provider to ensure that any additional drivers are properly covered.

4. Are There Other Endorsements I Can Add?

Endorsements are additional provisions that can be added to your auto policy to provide extra coverage for specific situations. It is important to consider whether any endorsements should be added to your policy as they can provide extra protection for you in the event of an accident or theft. 

Suppose you are uncertain about which endorsements may be beneficial. In that case, it is best to speak with your insurance agent to discuss the available options to determine which will be most beneficial for your situation.

5. What Are Telematics Devices?

Telematics devices are technology installed to track and monitor a vehicle's usage, performance and location. These devices use a combination of GPS, GSM, and other telecommunication technologies to track and monitor the vehicle’s data. 

They collect and send data about the vehicle’s location, speed, and other detailed information, like engine temperature and fuel consumption, back to the insurance company. Insurance companies can then use this data to assess a driver’s risk and adjust their premiums accordingly.

Conclusion

Auto insurance is necessary to protect yourself, your car, and other drivers. By asking the five questions above, you can better understand the type of coverage you need and make a wise decision that will protect your financial future. Taking the time to consider these questions can help you make an informed decision about purchasing auto insurance.  Doing so can help you secure the best coverage for the lowest cost.

Are you planning to get auto insurance in Alabama? The Oakley Agency has you covered. We make insurance simple. Our goal is to protect your home, auto, family, and business so you can set your focus on everything else you enjoy in life. Get in touch with us today!