The Ultimate Guide to Understanding Your Auto Insurance Policy

Do you know what your auto insurance policy covers? If you’re like most people, the answer is probably "not entirely." Your auto insurance policy is full of complex jargon and confusing provisions. But understanding your policy is essential to making sure you’re fully protected in the event of an accident.

Preferred Insurance Center in Coldwater, OH offers you this guide to decode your auto insurance policy so that you can understand exactly what you’re paying for. We’ll cover everything from liability coverage to comprehensive coverage, and we’ll explain how your deductible works.

Types of Auto Insurance Coverage

There are several different types of auto insurance coverage, each with its own purpose. Your auto insurance policy will likely include all or most of the following types of coverage:

Liability Coverage: This is the most basic type of coverage, and it’s required by law in most states. Liability coverage protects you financially if you’re found at fault for an accident. It covers damages to the other driver’s vehicle, as well as any injuries or property damage sustained in the accident.

Collision Coverage: This type of coverage pays for damages to your own vehicle if you’re involved in an accident. Whether you hit another car or a tree, collision coverage will help pay to repair your vehicle.

Comprehensive Coverage: Comprehensive coverage protects you from damages caused by events other than collisions, such as weather damage, theft, or vandalism.

Uninsured/Underinsured Coverage: Uninsured coverage can help protect your financial interests if you’re hit by a driver who doesn’t have insurance. Underinsured coverage kicks in if the other driver has insufficient insurance to cover the damages from the accident.

Now that you know the different types of auto insurance coverage, let’s take a closer look at some of the key provisions in your policy.


Your deductible is the amount of money you’ll have to pay out-of-pocket before your insurance company steps in to cover the rest. For example, let’s say you have a $500 deductible and you’re involved in an accident that causes $5,000 worth of damage to your car. You’ll be responsible for paying the first $500 of the repairs, and your insurance company will cover the remaining $4,500.

Policy Limits

Your policy limit is the maximum amount of money your insurance company will pay for damages if you’re involved in an accident. For example, let’s say you have a $100,000 policy limit and you’re involved in an accident that causes $150,000 worth of damage. Your insurance company will only pay $100,000 towards the repairs, and you’ll be responsible for paying the remaining $50,000.

Now that you know the basics of auto insurance, Preferred Insurance Center in Coldwater, OH can help you find the right policy for your needs. We’ll work with you to find the perfect coverage so that you can feel confident and protected on the road. Give us a call today to get started.


Happy Birthday…Sort Of

So 6 months after your real birthday, you have another birthday of sorts, and it really isn’t that happy!

Your age is one of the primary cost factors for most life and health insurance products. The thing is, most of the time they use what is called “age nearest birthday”, which means that when you are 6 months from your next birthday, you will start being rated as if you have already reached that age. Let me give you an example.

Gloria Merica was born 1/11/1990 and is currently 32 years old. If she applies for a life or health insurance policy now, she will get the rates for a 32 year old female. However, if Gloria puts off taking care of this for just 2 months and applies on 07/12/2022, she will be rated as if she was 33.

Now I hate being thought of as older than I really am, especially when I act MUCH younger than I really am, at least according to my wife. In this case, it not only goes against my nature and desire, it will cost me money every month for as long as I keep that policy!

So here is the point: Request a review of your Family Prosperity Protection now! The review is free. The security for you family is priceless. The clock is ticking.