What Is General Auto Insurance

You’ve just bought a new car (or maybe a not so new one), what next?  Get it insured.  General auto insurance of some kind is mandatory in most states and just plain smart to have.  Insurance is about protecting yourself.  There are two main ways to get a general auto insurance quote.  The first is to approach the insurance companies directly.  The second is to use a broker or agent to do the leg work for you.

The purpose of general auto insurance is to make sure you, or someone on your behalf, can pay for the damage done by your motor vehicle to other people, to other peoples’ property, and damage done to your vehicle.  It also gives you some financial protection in lawsuits.  This is vital when someone else is injured or dies as a result of an accident.  Not all policies are equal, they differ widely in what’s covered and how much they cost.  Getting quotes and understanding what is and is not covered seems like a lot of unnecessary running around – until the day when something goes wrong.

A Policy Is An Agreement

Policies vary from company to company and legal requirements vary from state to state, make sure you read any proposed policy and understand what the insurance company will pay for and under what circumstances will they pay (or not) – property, people, lawsuits, ongoing liability, etc.

An insurance policy is an agreement.  It says that the insurance company will pay out a certain amount of money if any of the things listed in the agreement happen.  The amounts that will be paid vary from policy to policy and are affected by state laws as well.  The important thing here is that if it’s not specifically listed in the policy it’s not included.  Also be aware of any limits placed on how much the insurance company will pay for different events.  Read the policy carefully to find out what these limits are.

The policy is your agreement too – if it’s in there, you have agreed to it.  Just as the insurance company can’t change the policy without you agreeing to the change, you have to tell them if you change anything.  If you modify your vehicle or move house then you must tell the insurance company because it may change the value of the vehicle or change the risk profile, which is a fancy way of saying how likely it is that the insurance company will have to pay out.

Direct General Auto Insurance

Arranging direct general auto insurance takes a lot of work to get the best coverage for the lowest price, but can be worth it as long as you understand the risks.  Most insurance companies have websites and provide information and sometimes quotes, just search for general auto insurance online. 

Using a broker or agent is easier – they do all the work for you and sometimes have access to companies you don’t - but there are risks here too.  Make sure that you tell your broker everything that you want and everything that will affect the insurance.  The other thing to consider is who is paying the broker.  Some brokers get payments from insurance companies when the broker sells a policy for them.  Most companies pay different amounts so the broker may well be acting in their own interest rather than yours and push a particular policy that may not be best for you.

General Auto Insurance Quotes

General auto insurance comes in different forms and generally works upwards from the mandatory (in most states) of covering other people, then other peoples’ property, then your vehicle.  Even if you’re going to use a broker or agent you should get a number of general auto insurance quotes yourself, read the policies and work out what types of cover is available, what you care about, and how much cover you need and can afford.

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