As the excitement of purchasing a new car starts to wear off, you may be wondering, how should I protect myself and my car from future accidents or damages?
This guide will outline the PA auto insurance requirements, the different types of coverage available to you, and the steps to take when needing to file a claim.
If you’re ready to get more information about receiving auto insurance through Diamond Credit Union, you can speak to a Diamond representative or contact our Senior Sales Representative to learn more.
What Does Auto Insurance Cover?
Auto insurance companies don’t have a one-size-fits-all policy. They will customize your policy based on various factors and what you need to protect yourself when you’re in an accident.
There are quite a few different auto insurance coverage types, and each of them will also help you determine your monthly rate. The different options make sure whenever you’re in an accident, you’re not having to pay the full price of damages.
One important PA auto insurance requirement is Liability coverage. This will protect you from bodily injuries and property damages that occur during an accident you cause. Pennsylvania also requires drivers to have Personal Injury Protection as a part of their auto insurance.
Other auto insurance coverage types are available and can help you if you get in a crash with someone that’s underinsured, or not insured. This type is called Uninsured Motorist.
What is comprehensive auto insurance? This type of insurance covers your car that is involved in theft, vandalism, or fire. These events are generally out of your control and can provide an extra layer of assurance and protection for your vehicle.
How Auto Insurance Rates Are Determined
The average full coverage insurance rate in Pennsylvania is $2,040 per year. However, there are quite a few different characteristics that companies will use to determine your monthly rate.
Here’s a list of everything they consider, but remember, each company’s policy rate will be slightly different, even though your factors stay the same. It’s important to compare rates to find the best one for you.
- The type of car you drive. The higher the cost of the car, or if it’s considered a luxury car, will likely mean you need to pay a higher insurance rate. Each car will also have a vehicle safety rating and this also helps determine your rate.
- Your age. Based on studies, if you’re under 25 years old, you’re more likely to get in an accident. However, students with good grades can get discounts on insurance rates.
- Where you’re located. Crime rates in your area will come into play as your company creates your insurance rate.
- Your driving record. Specifically, if you’ve had any traffic violations or accidents, you’re going to receive a higher insurance rate.
- The frequency you drive the car. The more often you drive the car, and the farther you drive, the higher your insurance rate.
- Your credit history. Just like other big financial decisions, having a good credit score can positively impact your insurance costs. So it’s important to use your credit cards responsibly and repay your debt on time.
What Is A Deductible In Auto Insurance?
Next, in our auto insurance guide, we’ll dive into deductibles. An auto insurance deductible is what you’ll pay out of pocket for any accidents. And then your insurance company will cover the rest. If the repairs cost less than what your deductible is, then you’ll have to pay for everything yourself.
You’ll have some flexibility with your deductible, and it will balance out with your monthly payments. So, if you opt for a higher deductible, your monthly payments will be lower but your out-of-pocket expenses will be higher.
Tips For Lowering Your Premium
Our auto insurance guide wouldn’t be complete without tips on how to lower your premium. Because auto insurance can be a costly endeavor, here are a few ways you can decrease your monthly payments and remain covered if you get into an accident.
- Increase Your Deductible. As we previously mentioned, your deductible goes hand-in-hand with your monthly premium. So, if you’re willing to raise your deductible, your monthly premium will decrease.
- Find Discounts. A lot of companies offer discounts for going paperless, being a homeowner, or being in the military. Make sure to browse these discounts to see if you qualify for any.
- Credit Union Memberships. By joining a credit union, you may get unique discounts on auto insurance costs. At Diamond Credit Union, we partner with TruStage and Liberty Mutual to provide you with the coverage you need at a lower cost.
- Drive Safely. A good driving record or enrolling in a safe driving program is a great sign for insurance companies. Typically, discounts are given to drivers who are claims, and accident-free.
- Browse Different Payment Options. If possible, paying your premium annually is generally less expensive than paying per month.
- Improve Your Credit Score. Credit scores are often used as a risk assessment for companies, including auto insurance policies. With a better credit score, it’s assumed you’re more responsible with payments and therefore can receive a smaller premium.
- Buy a Used Car. If you’re still in the early stages of purchasing a car, you can choose a used car that’s just as reliable and generally comes with smaller monthly payments.
- Review Your Current Policy. If you’ve had the same policy for multiple years, you can review your current policy to see if you qualify for new discounts.
How To File A Claim
We’ve covered a lot in this auto insurance guide, and now we’re going to highlight how to file a claim and some reasons your claim may be rejected.
If you find yourself in an accident and need to file a claim with your auto insurance company, there are a few steps you’ll need to take in order to get the insurance money. First, make sure you’re documenting everything, take pictures of your car and all other vehicles involved.
After documenting everything, you’ll need to write down important details of the incident to relay to your insurance company. Here’s a list of things to write down and get from the other driver.
- Location, date, and time.
- The contact and insurance policy information of everyone involved.
- Weather conditions at the time of the accident.
If a police report is necessary, make sure a copy is also sent to your insurance company. After the accident, report the incident as soon as possible to your insurance company. There’s typically a time limit to when an insurance company will accept the claim.
Why A Claim May Be Rejected
If everything is done correctly, your claim should be accepted and you’ll be able to get part of your damages paid. However, there are some scenarios where your claim is rejected.
Misleading information was filed. This is why you must document everything on both sides so there’s proof of any incidents or damages.
The damage isn’t covered by your policy. At the beginning of this blog, we outlined different auto insurance coverage types. If you’re not paying for specific coverage, your insurance company won’t be able to accept your claim.
For example, if your car is vandalized, but you’re not paying for comprehensive coverage, you’ll need to pay for the damages out of pocket.
The third-party insurance doesn’t cover the claim. The third-party insurance is the insurance of the other car in the accident. If they don’t have a policy that would cover the claim, then your claim will be rejected.
You can better protect yourself from this scenario by purchasing underinsured or uninsured coverage from your auto insurance company.
Get distinct Credit Union benefits and adhere to all PA auto insurance requirements by using TruStage Auto Insurance through Diamond Credit Union.
