Auto insurance isn’t one-size-fits-all. What’s the right coverage mix for you and your finances?

Auto insurance is just one component of owning a vehicle. The amount of coverage you carry depends on your unique circumstances—it isn't one-size-fits-all.

The truth is that car accidents are expensive. Beyond fixing a bumper or headlight, accidents could result in medical bills, repair costs and even lawsuits. Your finances could take a big hit if you're not adequately protected. Planning with proper insurance coverage for your needs and budget can reduce your worries in case an accident occurs.

Coverage Components
Insurance providers offer several components for you to choose from. Most states require at least some insurance coverage before you can legally drive, but additional options can give you even more protection. Do you know the right coverage mix for you?

Personal liability—the most common type of insurance required, at minimum, to let you on the road. It's your lawsuit protection when you’re at fault and liable for the other parties' medical bills and injury-related expenses, as well as the damages to their vehicle and other property repairs, such as a fence or utility pole. There are varying levels of coverage—assets, comfort level and budget will help determine your selection.

Uninsured/underinsured motorist (UM/UIM)—unfortunately, not everyone chooses the right amount of auto insurance. UM coverage comes into play when you’re in an accident and the driver of the vehicle at fault doesn’t have insurance. If your policy includes UM, you can file a claim with your insurer that may cover the incident—up to your policy’s limit.

If an underinsured driver hits you, UIM coverage may pay some medical expenses and property damage to cover what the other driver’s insurer won’t. It’s important to note that UM and UMI are two different coverage options.

Collision—whether you’re the only driver involved in a single-vehicle accident, you’ve collided with someone or something, or another vehicle collides with your parked vehicle (including hit-and-runs), collision insurance could help cover the damage incurred. If you have a vehicle loan, your financial institution might require you to carry collision insurance as protection if you do severe damage to the vehicle they technically own.

Comprehensive—auto mishaps could also include damage to your vehicle from theft, animal accidents, fire, weather-related incidents, etc. Like collision insurance, comprehensive insurance may also be required if you’re leasing or financing your vehicle. If you own your vehicle, you don’t have to carry this coverage, but it’s important to consider your vehicle's value and ability to pay for damages out-of-pocket. 

Full coverage?
Comprehensive and collision coverage are equally important for protecting your vehicle from physical damage. Full coverage car insurance typically refers to carrying both comprehensive and collision in addition to any state-required auto coverages. However, ‘full coverage’ isn’t an official insurance term or product, so be sure to clarify what's included if your agent uses this term.

Premium. Deductible. What does it matter?
A premium is the amount you pay to keep your insurance policy active. It's determined by a combination of the types of coverage you want and information from your driving record. If you're what's seen as a "risky" driver by your insurance company (think previous accidents, a new driver, or tickets), your premium will likely be higher than someone considered less risky.

A deductible is an amount you're responsible for before your insurance pays the rest of your claim. If you have a $500 deductible for your collision insurance, for example, and you drive off the road and incur damage, you'll likely be on the hook for $500 of the repairs before insurance pays anything else.

You can choose a higher deductible to pay a lower premium. However, this also means that you risk paying a higher out-of-pocket if you have an accident. A lower deductible usually means a higher monthly premium, so it's worth speaking with your insurance agent to choose the best option for your situation.

Find your preferred insurance mix!
When was the last time you discussed coverage options with your insurance agent? If you can’t remember, it’s been too long!

Vantage offers auto and home insurance through our Credit Union Insurance Agency, LLC, (CUIA).^* CUIA can serve as your trusted advisor to design a personalized insurance plan that fits your individual needs and budget.

Explore your insurance options with CUIA!

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* The Credit Union Insurance Agency, LLC (‘CUIA’) is a wholly owned subsidiary of Members Resource LLC, a Credit Union Service Organization, a wholly owned subsidiary of Vantage Credit Union (‘VCU’). Business conducted with CUIA is separate and distinct from VCU. Insurance products offered by CUIA are (i) not deposits of any financial institution and, therefore, are not NCUA or otherwise federally insured and (ii) are not an obligation of or guaranteed by VCU. Coverages, discounts, special program rates or savings, billing options, and other features are subject to availability and individual eligibility. Savings are not guaranteed.