Become Purse Strings Approved Subscribe to the Mailing List

Auto Insurance

01

Auto Overview

02

Understanding Coverage

03

Helpful Terms & Tools

04

Accident Checklist

Helpful Terms and Tools

Deciphering Auto Limits and Coverages

Collision Coverage -

  • It’s likely going to be the most expensive line item on your policy.
  • This type of coverage is required while you're still paying off an auto loan (along with comprehensive coverage, which pays for things like theft and vandalism) and it’s a good idea to keep it for some years after that.
  • But, what if you’re driving a really old car? A car that’s not worth much? Remember, collision coverage will pay the actual cash value of the vehicle if it’s totaled in a crash.
  • If you drop collision coverage, you are saying that you can do without your car, or have a way to replace it without help of an insurance payment for the current value of the car.
  • Is your car worth less than your collision deductible? Then, it’s not worth paying for collision coverage.

Comprehensive Coverage -The amount your insurance company will pay for hazards that are unrelated to a crash but that can damage your car (e.g. theft or vandalism, natural disaster, car fires). Often come with specific exclusions.

Deductible -The amount you pay out of your own pocket for covered expenses before the insurance company’s portion will be paid. Higher deductible = more out of pocket expenses

Did You Know

There are a lot of extra services, such as rental coverage and roadside assistance, that might be add-ons to your insurance policy (at extra cost)? Make sure you are not paying for duplicate services (like AAA) and that anything you pay for you need (if you have access to a second car you may not need rental coverage, for example).

This Guide

01

Auto Insurance Part 1 - Auto Overview

02

Auto Insurance Part 2 - Understanding Coverage

03

Auto Insurance Part 3 - Helpful Terms & Tools

04

Auto Insurance Part 4 - Accident Checklist

Sign up for our #FinanciallyFearless Newsletter