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What is Insurance

We understand that all insurance — not just auto insurance — is confusing and complicated. We want to help you understand how insurance works and why you need it. If you still have questions after reading this, please contact us — we’re here to help!

Insurance is about protection. You want to safeguard your future finances, freedom and way of life. In short, insurance is the key to protecting your dreams for your family’s future.

What is Auto Insurance?

Specifically, auto insurance protects you from financial loss if you have an accident. When you purchase a policy from an insurance company, you agree to pay the premium, or cost of the coverage. In turn, the insurance company agrees to pay your losses as agreed to in your policy. The protection you receive today protects you from financial hardship in the future.

An Example of the Power of Auto Insurance

Without Insurance:
Let’s say you purchased a car and some time later, you had an accident that was your fault. The damages cost $10,000 for your car and $10,000 for the other vehicle. Without insurance, you have to pay the entire $20,000. An unexpected expense of $20,000 is life-changing, and nearly impossible to recover from.

With Insurance:
In this case, after you bought your car, you purchased an auto insurance policy that covers damage to your vehicle and any vehicle you hit. The policy costs you $50 per month and you’ve made every payment. Let’s assume that the same accident happens and you have a $20,000 expense for the repairs to both vehicles. Because your auto insurance policy covers the damage, the insurance company pays that $20,000 expense (less your deductible). You have a car that needs to be repaired, but that’s a lot better than having a $20,000 unexpected expense!

Why Do I Need Auto Insurance?

If you’re involved in a car accident and you do not have auto insurance, your out-of-pocket expense could be over $10,000. It’s sudden, unexpected and most of all, not financially planned for. Your car is in the shop, you may have a ticket for driving without auto insurance, and your license could be revoked. You’re trying to find the money to pay for the repairs and to get your license reinstated. By having auto insurance, you don’t have to worry about this. Your claim will be covered up to your limits and you’ll have help finding repair shops, your license won’t be in jeopardy for driving without insurance and, depending on your coverage, you may have a rental car, allowing you to still make trips to the store, drop the kids off at school, and go about life normally.

Is Minimum Liability Enough?

It all depends on what your needs are. Typically, people who purchase liability insurance are driving older vehicles or no longer paying off their vehicle. Our minimum liability customers are often seeking coverage on a car that, in the event of an accident, would be more costly to repair than to replace. Minimum Liability coverage is also often purchased when someone’s only concern is coverage for other individuals, vehicles or property injured or damaged by an accident that they cause. Generally speaking, if you’re not concerned about repairing your vehicle, Minimum Liability is what you want and the most cost-effective way to keep you driving legally.

Peace of Mind

Now you know why there are insurance companies. Even if you purchase car insurance because it’s required by the state, what you’re really buying is peace of mind — you know that you don’t have to worry about unexpected financial hardship in the future due to an auto accident.

We offer many different insurance products and services, so you’re sure to find the affordable coverage you need to protect your car and keep your dreams alive.

Learn About Our Auto Insurance Products

These descriptions are meant to assist you in determining your auto insurance needs. These are not complete descriptions and do not constitute an insurance contract or coverage for specific losses. For a complete description, please consult your policy contract or contact your insurance agent.