Auto insurance is an important thing to have. This is because auto insurance proves that you have the means to cover the costs of property damage and injuries resulting from accidents that you might have caused. According to Scient Federal Credit Union, U.S. motorists pay an average of $1,674 annually (or about $140 per month) for auto insurance. When you are shopping for coverage through an auto insurance service, you should ask these five questions.

1. What Kind of Coverage Do I Need?

You need to carry at least state-mandated minimums for insurance coverage. According to our experts, if you have a car loan for your vehicle, the lender will require you to carry at least comprehensive and collision coverage. Your insurance provider can help you to make sure you get the coverage needed to legally drive your vehicle and meet lienholder requirements.

2. What Will This Policy Cover?

You should know how insurance coverage protects you, the vehicle, and others who are impacted during an accident. You need to know when a deductible would apply and when you would not need to pay one. You also should know if you are protected against hit-and-run drivers or those who are uninsured and might not have enough insurance protection to fully compensate you due to an accident.

3. How Can I Lower My Rate?

A good auto insurance service should help you to get the best possible insurance rate. In our experience, increasing the deductible can help to lower your premium. There should be other options to lower your premium, such as completing a driver safety course, adding a security system, or listing the drivers who would be insured.

4. What's the Process for Filing Claims?

It's important to know how to file an insurance claim. Your insurance provider should explain the process for how to initiate the claim and how the insurer would handle it. You also should know how long the state allows insurers to investigate claims and either deny or settle them.

5. Can I Get a Home and Auto Discount?

Whether you rent your home or own it, most auto insurers also underwrite home insurance. You should ask if you can get coverage for both and get a rate discount on each. Bundling your coverage should help you to get the insurance that you need for less money.

Have more questions? Contact us at Middle TN Insurance Group Inc. You can learn more by calling, submitting an online request, or visiting the office for our auto insurance service.