Addressing A Couple Of Your Questions About Buying An Auto Insurance Policy

Being involved in an auto accident can be a painful and expensive event, and while auto insurance is designed to help protect you against these liabilities, these policies are often poorly understood by consumers. As a result, individuals may not understand a couple of important points when it comes to their car insurance policies, but learning the following two questions and their answers should help you to better understand this protection. 

Are There Benefits To Paying Your Premiums In One Lump Sum?

When you purchase an auto insurance policy, you will be given a couple of options when it comes to how you pay for it. Many people will opt for a monthly payment schedule because the payments will be smaller. However, this can end up being one of the more expensive options because insurance companies will often offer discounts for those that pay their entire premiums for the duration of the policy in one lump sum. 

The exact amount of the discount you can receive for paying up front will vary based on the insurance company and the duration of your policy. By speaking to your insurance agent, you will be able to determine whether the discount you would get from paying the premiums upfront is worth the inconvenience of making this larger payment. 

Why Should You Opt For A Separate Medical Policy?

Many individuals will simply purchase liability for their vehicle and assume that they're well protected. However, it should be noted that liability insurance will not provide you coverage for some of the largest costs associated with these accidents. In a major accident, the medical bills can be the largest expense stemming from the accident, but liability policies have low limits on what they will pay for medical damages. 

By purchasing a separate policy that provides coverage for medical expenses, you can avoid being liable for your own or another's medical bills. While these policies will also have claim limits, they are usually far higher, and you will have greater control over the amount of coverage that you purchase. 

Protecting yourself from the financial costs of an automobile accident should be a major concern for anyone that drives a car. However, auto insurance is often misunderstood by consumers because these policies are highly complex. By understanding how to tell if paying your premiums in a lump sum is worth it and the benefits of having a separate medical coverage policy, you will be better able to ensure you are as protected as possible from these liabilities. For more answers to questions about car insurance, contact a car insurance company like Village Insurance.

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