What is auto insurance?

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:

• Property coverage pays for damage to or theft of your car.
• Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.

Most auto policies are for six months or a year. Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium.

What Affects My Auto Insurance Rate?

It can appear as though there's no reasonable explanation as to what determines your auto insurance rate. However, there are a few factors that determine your cost. 

Your age: Statistical evidence proves that age affects driving conduct. Younger, less experienced drivers are more prone to accidents. 

Where you live: Where you live has an impact about what sort of dangers will probably experience. Local repair costs also affect your rate.

The sort of auto you drive: The age, condition, and security features surrounding your auto affects your rate. 

Your driving history: Drivers with no accidents or moving violations are less likely to be in an accident.

Why do you need auto insurance?

It's really all about protecting yourself financially.

• If you're in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it.
• If you or any passengers are injured in an accident, medical costs can be extremely expensive.
• If you or your car is responsible for damage or injury to others, you may be sued for much more than you're worth.
• Not only is having insurance a prudent financial decision, many states require you to have at least some coverage.

Questions to ask your agent
Your Independent Agent is an advocate for finding auto insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion:

• How much can you afford to pay if you get in an accident? (To keep premiums low you may want to have a higher deductible and be willing to pay more for repairs.)
• What is the insurance company's level of service and ability to pay claims?
• What discounts are available? (Ask about good driver, multiple policy and student discounts.)
• What's the procedure for filing and settling a claim? (Ask who to call and what happens after you file a claim.)

Thank you for your interest in Armar Insurance Agency. With three locations to serve Sacramento, Stockton, Modesto and all California as well as Minneapolis, MN. Call your nearest office - Sacramento (916) 384-9621, Yreka (530) 842-2778, Minneapolis (736) 425-7172. You can also email us and an insurance agent will be happy to answer any questions and help you find the best coverage for your specific needs.