Important Facts You Should Know About Auto Insurance
                     Important Facts You Should Know About Auto Insurance
Driving is a privilege, not a right. Anyone that owns or operates a 
vehicle on public roads needs to understand the risks involved and 
take steps to protect themselves if something goes wrong. Auto 
insurance is one of the primary ways to do that, as it helps you recover 
from financial loss after an accident. But what kind of auto insurance 
do you need in Louisiana and how much coverage do you need? It 
depends on your individual circumstances. There are different types of 
auto insurance policies with varying degrees of coverage. You'll want 
to understand which ones will best suit your needs.
Auto Insurance Basics
If you are like most people, you don’t read the fine print. You just want to 
know the bottom line. Like many people, you probably don’t have a clue 
what auto insurance is all about. The best way to begin understanding 
auto insurance is to know the different components of a standard policy. 
Premium - The amount of money you pay for your monthly insurance 
coverage. Deductible - The amount you pay out-of-pocket for each claim 
you file. Your deductible will vary according to your insurance company and 
policy type. Coverage - The types of risks that an insurance company is 
willing to cover for you. Liability - The amount of money you agree to pay 
other people if you cause an accident.
What is Collision Coverage?
If you are in a car accident that is your fault, collision coverage will 
help you pay for the repairs to your car. If you have comprehensive and 
collision coverage on your policy, the company will pay for damages to 
your car no matter who is at fault. Collision coverage will only pay if 
you are at fault. The more collision coverage you have, the less your 
out-of-pocket expense will be when filing a claim. The minimum 
amount of collision coverage needed is based on the value of your car.
What is Comprehensive 
Coverage?
Comprehensive coverage pays for damages to your car regardless of who 
is at fault. If your car is stolen, vandalized, floods, or is hit by an animal, 
this coverage will pay for repairs. While this coverage helps protect you 
from some risks, it won’t pay for everything. It won’t cover regular wear 
and tear, ongoing issues with your car like a leaky roof, or defects in your 
car that were there before the policy was started. The amount of 
coverage you need will vary depending on the current value of your car.
What is Property Damage Liability 
Coverage?
If you are in an accident that causes damage to another person’s car or 
property, this coverage will help you pay for the costs associated with 
that accident. The amount of coverage you need will vary depending 
on the state you live in and the type of coverage you have on your 
policy.
What is Uninsured and Underinsured 
Coverage?
If you are in an accident with an uninsured driver, this coverage will 
help you pay for the damages associated with the accident. If you are 
in an accident with an underinsured driver, this coverage will help you 
pay for the difference in costs between the amount the other driver’s 
insurance paid and what your damages were.
How Much Auto Insurance Do You Need?
Insurance companies use a formula to determine the amount of 
insurance you should have. This formula factors in the minimum amount 
required by law, your current assets, and the value of your car. 
Underinsured Motorist Coverage has a direct impact on the amount of 
insurance you should have. The more UM/UIM coverage you have, the 
more you should have overall. The less UM/UIM coverage you have, the 
less you should have overall. While calculating the right amount of 
insurance can be a bit complicated, it’s important to know how much 
coverage you need.
Conclusion
Auto insurance is a way to protect yourself from financial loss in the 
event of an accident. There are different types of auto insurance 
policies with varying degrees of coverage. You'll want to understand 
which ones will best suit your needs.
To know more about Bonano Insurance, visit 
https://www.bonanoinsurance.com/