Auto Insurance 101

Here at Barker Buick GMC, we want to ensure you have a thorough understanding of auto insurance, how it works, and how to find the best rates to ensure your investment is fully covered. If you’ve been cruising down the roads of Houma, LA, for a while, then you’re probably familiar with some of the ins and outs of auto insurance, and you can skip down to the next section or check out our library of informative videos about protecting your investment. If not, read on. Auto insurance is a type of insurance that protects you financially in the event of an accident. It can help pay for damage to your vehicle, other people's property, and medical expenses for you and your passengers. In most states, including Louisiana, it is legally required to have auto insurance.

What Out-of-Pocket Expenses Does Insurance Create?

While insurance helps you avoid paying a hefty sum in the event of an accident, it creates a few out-of-pocket expenses.

• Your insurance deductible: This is the amount of money you must pay out of pocket before your insurance company starts paying. Deductibles can range from a few hundred dollars to a few thousand dollars.
• Collision and comprehensive fees: These fees are charged by your insurance company to cover the cost of processing your claim. They are typically a few dollars per month.
• Surcharges: These are additional fees that your insurance company may charge based on your driving record, the type of car you drive, or your age.
• Premium: This is how much you pay for your insurance policy each month.

Types of Auto Insurance Coverage

There are many different types of auto insurance coverage available. The most common types include:

• Liability insurance: This coverage pays for the damage you cause to other people's property or injuries to others in an accident. It is the most basic type of auto insurance and is required in most states.
• Collision insurance: This coverage pays for damage to your vehicle if you are in an accident, regardless of who is at fault.
• Comprehensive insurance: Pays for damage to your vehicle from events other than a collision, such as theft, vandalism, or hail damage.
• Medical payments insurance: Covers your medical expenses and your passengers' medical expenses if you are in an accident, regardless of who is at fault.
• Uninsured/underinsured motorist coverage: Pays for your medical expenses and the damage to your vehicle if an uninsured or underinsured driver hits you.

Auto Insurance Terms You Need to Know

Here are some vital auto insurance terms that you should know:

• Policy: This document outlines the terms of your insurance coverage.
• Claim: A request for payment from your insurance company.
• Subrogation: This is the process by which your insurance company tries to recover the money it paid for a claim from the person who caused the accident.

Tips and Tricks for Finding the Right Coverage

Here are a few tips for finding the right auto insurance coverage for you:

• Get quotes from several different insurance companies.
• Compare the different types of coverage and the limits of each policy.
• Consider your budget and your needs when choosing a policy.
• Ask about discounts that may be available to you, such as discounts for good driving records or for taking a defensive driving course.

Once you’ve found the best insurance for your next vehicle, visit us at Barker Buick GMC, and we’ll find you a car to match.

We offer a wide variety of vehicles to choose from, and our team of experts can help you find the perfect car for your needs and budget. We also have a team of financial experts who can help you find the right auto insurance policy for your new vehicle.

Visit us today to learn more about our auto insurance and vehicle offerings!