Types of Car Insurance

Car insurance is a must-have. It’s not just about following the law; it’s about protecting yourself financially if something goes wrong on the road. Understanding car insurance can be confusing, but we’re here to break it down for you in simple terms.

The average cost of a full-coverage car insurance policy has risen significantly in recent years, so knowing what you’re paying for is more important than ever. Let’s dive into the world of car insurance and explore the different car insurance policy types available.

Essential Car Insurance Coverage

There are many types of car insurance policies, and each one serves a different purpose. Some are optional, and some are required by law.

Liability Coverage: Bodily Injury and Property Damage

Liability coverage is the minimum you need to legally drive in most states. It’s like the seatbelt of insurance — you shouldn’t drive without it. This coverage steps in when you’re at fault in an accident. It helps pay for the other person’s medical bills (bodily injury) and repairs to their car or property (property damage).

In Wisconsin, you need at least $25,000 per person and $50,000 per accident for bodily injury, plus $10,000 for property damage. It’s a sobering thought that bodily injury claims in 2022 averaged around $24,211 per loss. That’s why many people choose higher limits for better protection.

Uninsured and Underinsured Motorist Coverage

Imagine getting hit by a driver who doesn’t have insurance or doesn’t have sufficient coverage. That’s where uninsured and underinsured motorist coverage comes in handy. It’s a safety net for you and your passengers. In Wisconsin, you must have at least $25,000 per person and $50,000 per accident for uninsured motorist bodily injury. This coverage can help with medical bills, lost wages, and even pain and suffering.

Collision Insurance

Collision insurance is pretty straightforward — it covers damage to your car when you collide with something. It could be another car, a tree, or even a mailbox. While it’s not required by law, if you have a car loan or lease, your lender will probably insist on it, and it usually comes with a deductible.

Comprehensive Insurance

Comprehensive coverage protects against all sorts of noncollision mishaps, such as theft, vandalism, fire, or even a tree falling on your car. Like collision insurance, it’s optional but often required if you’re financing or leasing.

Personal Injury Protection and Medical Payments Coverage

These coverages are all about taking care of you and your passengers, regardless of who caused the accident. They can help with medical expenses, and personal injury protection (PIP) might even cover lost wages. While not required in Wisconsin, they can be a smart addition to your policy for extra peace of mind.

Additional Car Insurance Options for Complete Protection

If you want to protect yourself more fully, there are different types of car insurance coverage that you can purchase for greater peace of mind.

Guaranteed Asset Protection Insurance

If you’ve just driven a new car off the lot, guaranteed asset protection (GAP) insurance might be worth considering. Cars can lose value quickly, and if your car is totaled, GAP insurance helps pay the difference between what you owe on your loan and what your car is actually worth.

Rental Reimbursement Insurance

If your car is in the shop after an accident, you may need to find a new way to get around. Rental reimbursement coverage can help pay for a rental car while yours is being fixed. It usually has daily and total maximum limits, so make sure you understand the terms before you need to use it.

Roadside Assistance and Towing Coverage

There’s nothing worse than being stranded on the side of the road with a flat tire or an empty gas tank. Roadside assistance coverage can cover things such as towing, jump-starts, and even lockout services. It’s a small addition to your policy that can save you a big headache.

Specialized Coverages for Diverse Needs

There’s also a wide range of car insurance options for more specialized insurance needs.

Classic Car Insurance

If you own a vintage car, regular car insurance might not be enough. Classic car insurance is carefully tailored for your specific vehicle; it often includes agreed value coverage (so you know exactly what you’ll get if something happens) and flexible usage terms.

Full Glass Coverage

Cracked windshields happen, and they can be pricey to fix. Full glass coverage can help repair or replace your windshield without you having to pay a deductible. It might be offered separately or as part of your comprehensive coverage.

Making Informed Decisions on Car Insurance

Before you spend any money on car insurance, it’s important to feel that you’re making an informed decision. Make sure you’ve considered all your requirements before making a decision.

State Requirements vs. Personal Needs

While Wisconsin has its own minimum requirements, it’s important to consider your specific circumstances. Think about your car’s value, your assets, and how much risk you’re comfortable with. Remember, the minimum might not be enough to fully protect you in a serious accident.

Understanding Premiums

Your insurance premium (the price you pay) depends on many factors. Your driving record, age, where you live, what kind of car you drive, and even your credit score can all affect your rates. Auto insurance rates have gone up by 29.6% nationally since 2011. That’s why it’s so important to shop around and compare quotes.

Impact of Deductibles and Limits

Choosing a higher deductible (the amount you pay out of pocket when you make a claim) can lower your premium, but it means you’ll pay more if you have an accident. Conversely, higher coverage limits give you more protection but will increase your premium. It’s all about finding the right balance for your situation.

Best Practices for Choosing and Tailoring Your Policy

With any kind of insurance policy, it’s good practice to:

• Shop around and compare quotes from multiple insurers.
• Consider bundling your auto insurance with other policies (such as home insurance) for discounts.
• Review your coverage regularly, especially when life changes happen.
• Ask about discounts — you might qualify for safe driver, multicar, or antitheft device discounts.

Wisconsin-Specific Insurance Information

Living in Wisconsin comes with its own set of insurance rules. It’s an at-fault state, which means that if you cause the accident, you’re responsible for damages. The state requires minimum liability coverage of $25,000 for injuries to one person, $50,000 for total injuries per accident, and $10,000 for property damage if you’re at fault. Wisconsin doesn’t require PIP or medical payments coverage, but they’re valuable additions to your policy.

Drive With Confidence: Your Next Steps

Understanding car insurance types is the first step in protecting yourself on the road. At Boucher Auto Group, we’ll find you the right vehicle and the right coverage to match. Whether you’re in the market for a new car or just want to review your insurance options, we’re here to help.

Ready to explore your options? Schedule a test-drive and find the perfect car and coverage for your needs. Drive with confidence, knowing you’re protected on the road ahead.