In this class on understanding auto insurance we cover the intricacies of auto insurance coverage, policies, and terminology. We explore the various components of auto insurance and discussed strategies for selecting the right coverage to meet individual needs and circumstances.

Key Takeaways and Next Steps:

Familiarize yourself with the different types of auto insurance coverage available, including liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection (PIP). Understanding these coverage options allows you to tailor your policy to provide adequate protection for yourself and your vehicle.
Evaluate your insurance needs based on factors such as your driving habits, vehicle type, and financial situation. Consider factors like deductibles, coverage limits, and optional add-ons when selecting a policy that offers the right balance of protection and affordability.
Review your current auto insurance policy regularly to ensure it aligns with your changing needs and circumstances. Update your policy as necessary to reflect changes such as vehicle upgrades, changes in driving habits, or life events that may impact your insurance requirements.
Take advantage of discounts and savings opportunities offered by insurance providers to lower your premiums. Common discounts include safe driving discounts, multi-policy discounts, and discounts for completing defensive driving courses. Explore these options to maximize your savings while maintaining adequate coverage.
Consider consulting with an insurance agent or broker for personalized guidance and assistance in navigating the auto insurance market. An experienced professional can help you understand your options, compare policies, and make informed decisions that protect your interests on the road.
Three ways to buy auto insurance:
direct (via internet or 800 number); you are dealing with one company and making many/most of the decisions on coverages, etc
captured agent; dealing with an agent usually in person or locally over the phone who just sells for one company; they are helping you make decisions as to the coverages to buy
independent agent - represents multiple insurance companies and try to place you with the best (service and costs) companies of those they represent based on your circumstances
Explore any savings that don’t compromise coverages such as bundling and the number of miles driven per year
Insurance is state specific. Your state insurance commissioner's office has a lot of information on their website including the complaint ratio of each insurance company. This is number of complaints the commissioner’s office receives about each company relative to the number of policies they have sold in your state. Should be able to find your specific state with a search, but if having trouble National Association of Insurance Commissioners has a website where they can link you to each state’s site. Here is that link - NAIC
Ratings of insurance company you are considering is very important. Here are examples of ratings from the top rating agencies:
Moodys: AAA (Exceptional); AA (Excellent); A (Good): https://www.moodys.com/
S&P: AAA (Superior); AA (Excellent); A (Good): https://www.spglobal.com/ratings/en/index
AM Best: A++ and A+ (Superior); A and A- (Excellent); B++ and B+ (Very Good): https://www.ambest.com/home/default.aspx

Remember the guide is not an insurance agent and this session is talking generically about auto insurance. Additionally, insurance regulations are controlled by each state and no two states have the exact same laws, rules and regulations.

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