Auto Insurance

Whether you’re a new driver, just bought a new vehicle or have been behind the wheel for years, you probably know that you need car insurance. But what exactly is auto insurance, and when would you use it? 

Why Do You Need Car Insurance?  

Car insurance protects you and your vehicle when you have an accident or experience damage to your car. Auto insurance rates are determined using different factors, including your credit history and driving history. You may choose to pay your entire policy cost, also called a premium, at one time or divide it into monthly payments. Paying your premium on time is important, as it keeps your coverage/policy current. Failure to pay may result in cancellation of your auto insurance policy and leave you and your vehicle unprotected. It may also put you in violation of your state’s insurance requirements. 

What Does Car Insurance Cover When You Have an Accident?  

Car insurance will help cover the cost of damages and repairs, either for others or yourself, or both, if you have an accident. For some coverages, you must first pay your deductible, the out-of-pocket cost that is determined by your policy. Accidents, speeding tickets or other traffic violations may increase the cost of your auto insurance and may disqualify you for some discounts, like the safe driver discount.

There are several types of auto insurance coverage you should consider to ensure sure you have the coverage you need.  

Liability Coverage

Liability coverage is required by law in most states, but do you know what it really covers? If you are at fault for a car accident, you are legally obligated to cover the injuries and car damages for the other driver. Liability car insurance coverage means your insurance provider will pay these obligations on your behalf. If you only have liability insurance, your personal car repair expenses and medical bills are not covered by your insurance company. 

Types of Liability Coverage

Bodily Injury Liability

If you are at fault for a car accident that injures another person or driver, Bodily Injury Liability coverage will help pay for his/her medical expenses and loss of income due to any injuries. It could also help pay for any legal fees if you are sued. 

Property Damage Liability

Similar to Bodily Injury Liability, this type of coverage focuses on property damages instead of bodily injuries. This type of coverage could help with repair expenses for another vehicle or another person’s property if you are at fault for a car accident. 

Uninsured or Underinsured Motorist Coverage

Although most states require drivers to have liability insurance, it is possible you might be in an accident with another driver who does not have auto insurance or does not have enough coverage to cover your expenses. Uninsured or Underinsured Motorist car insurance allows you to file a claim with your insurance company to cover some of these out-of-pocket costs. 

Personal Injury Protection

Personal Injury Protection, also known as PIP or Personal Injury coverage, typically covers your medical expenses and lost wages due to an accident. It’s also referred to as “no fault coverage,” because the claim is paid regardless of which driver is at fault. This type of car insurance could also cover related costs of a passenger injured in a car accident, rehabilitation costs, and even funeral expenses. PIP is not required or available in all states.  

Collision Insurance

Collision coverage is very important coverage because it covers the repair or replacement of your vehicle if you are involved in an accident with another driver or an object, such as a tree or fence. It also covers single vehicle accidents. This insurance coverage does not cover damages that aren’t related to driving – such as vandalism to your vehicle – and does not pay for any medical bills. If your car is financed through a bank or other lender and you are making payments, you are most likely required to have collision insurance coverage.  

Comprehensive Insurance

Comprehensive coverage, or Other Than Collision coverage, is considered one of the highest forms of protection a driver can get, and it might be one of the most important. Comprehensive coverage helps cover repair and replacement costs of your vehicle that is damaged in an incident not involving a collision. This type of coverage could cover vandalism, fire, theft, falling objects and natural disasters. Just like collision coverage, if your car is financed through a bank or other lender and you are making payments, you are likely required to have comprehensive coverage.

Medical Payments Insurance

If you or your passenger is injured in an automobile accident, medical expenses can add up quickly. Medial Payments Insurance may help pay for those medical costs  regardless of who caused the accident. It may cover hospital or doctor visits, X-rays, prostheses, ambulance services, professional nursing services and even health insurance deductibles. This type of coverage is typically optional and is not available in all states, so be sure and ask your insurance provider what kind of coverage you might need. 

Roadside Assistance

Roadside assistance is typically a low-cost membership plan to add-on to your existing insurance policy that comes with several benefits: towing, lockout service, flat tire service, fuel delivery and battery service. Consider adding this service plan so you can be prepared for life’s unexpected bumps in the road! 

*Roadside assistance is not an insurance product, it is a membership plan. All membership plans are a product of and administered by Nation Motor Club, LLC. dba Nation Safe Drivers (NSD). 

Information and coverage descriptions are general in nature. Actual coverage depends on the policy. Nothing on this website alters the terms or conditions of any First Acceptance Insurance Company, Inc. policies. Supplementary coverage options or products may be added to an insurance policy for an additional cost where applicable. Product and features are subject to underwriting criteria. Price may vary based on how you buy. Not all products, discounts or payment plans are available in all states or distribution channels. All products described herein are subject to terms and conditions. 

Frequently Asked Questions

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Affiliated entities of First Acceptance Corporation: First Acceptance Insurance Company, Inc. First Acceptance Insurance Company of Tennessee, Inc., First Acceptance Insurance Company of Georgia, Inc., First Acceptance Services, Inc., and First Acceptance Insurance Services, Inc. The information contained herein is for general informational purposes only.