Building the Best Auto Insurance Policy

Understanding your auto insurance policy is essential for making sure that you have adequate coverage. While every policy is unique, there are certain terms that consistently pop up.

Your Auto Insurance Contract is Made Up of Five Sections

1). Declarations Page

Is unique to you and contains information that is specific to your household.

2). Insuring Agreement Page

Outlines the coverage options and limits that you purchased.

3). The Exclusions Section

Tells what is not covered by your policy.

4). The Conditions Page

Outlines the legal responsibilities of both you and your insurer.

5). The Definitions Page

Which may be referred to as the “fine print,” defines the terms and gives an overview of the rights of the policyholder and the insurer.

Key Points to Remember When Building Your Auto Insurance Policy

As you’re building your auto insurance policy, remember that a low monthly rate is only part of what makes a policy a good fit for you. A bare-bones auto insurance policy with a high deductible might come with an attractive premium, but it will probably leave you in trouble financially if you ever have to actually use it.

Remember that you are only covered up to your policy limits. If your policy says that you have $25,000 in bodily injury coverage and you are responsible for a collision that left someone with a $100,000 medical bill, you’ll be responsible for covering $75,000 out of your own pocket.

Questions You Should Ask Your Agent

Your auto insurance needs are unique, and your policy should be also. Knowing the right questions to ask your auto insurance agent as you’re building a policy can help ensure that you get great coverage at a great price.

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Choosing the Right Auto Insurance in 6 Easy Steps

Nevada drivers are required to carry auto insurance, but in most cases, state minimum coverage isn’t enough. Building the right auto insurance policy can protect you when you really need it versus just getting the cheapest plan possible, helping you to save money and reduce stress.

Step 1: Do Your Research When Buying a New Vehicle

If you’re buying a new vehicle, upfront costs aren’t the only costs to consider. You should ask your agent for a pre-quote for how much your new vehicle will cost to insure. Some vehicles are more likely to be stolen or cost more to repair in an accident and are therefore more expensive to insure. On the other hand, safety features and anti-theft devices can bring down insurance rates. Your auto insurance agent can help you figure out which vehicles are the most affordable to insure.

Step 2: Auto Insurance Discounts

Depending on your payment history, your occupation, what type of vehicle you’re insuring, whether you’re eligible for discounts like military discounts, occupational discounts (like being a Nurse, etc.) good student discounts, or early shopper discounts, etc., your premium will vary widely from one insurer to another. Speaking to your auto insurance agent about possible discounts can help you make sure that you are taking advantage of all the available discounts.​

Step 3: What Insurance Coverage Do I Need?

Talk to your auto insurance agent about your driving habits, such as whether your vehicle is strictly for personal use or whether you also drive for business purposes, including rideshare companies.

Step 4: Who Can Drive My Car?

If anyone in your home has access to the vehicle and are licensed drivers, or anyone else that has regular access to the vehicle (friend, relative, or neighbor) should be on your policy.

Step 5: What Types of Insurance Coverage Should You Choose?

In addition to Nevada’s state minimum coverage requirements, there are several other types of auto insurance add-on coverages that may benefit you. These may include: collision, comprehensive, rental car coverage, uninsured/underinsured motorist, medical payments, and roadside assistance/towing.

Step 6: Begin to Build Your Auto Insurance Policy