The ABC's of Auto Insurance

Sep 18, 2019

Understanding Auto Insurance Coverage

Auto insurance is an essential aspect of responsible vehicle ownership. Understanding the various coverage options available to you is crucial in protecting yourself and your assets. At I Am Future Proof, we strive to educate our customers on the ABC's of auto insurance, empowering them to make informed decisions.

1. Liability Coverage

Liability coverage is a foundational component of any auto insurance policy. It protects you financially in case you cause an accident resulting in bodily injury or property damage to others. It typically includes two main components: bodily injury liability and property damage liability.

Bodily Injury Liability

Bodily injury liability coverage helps cover medical expenses, lost wages, and legal costs if you injure someone in an accident. It is essential to have adequate bodily injury coverage to protect your financial interests in case of a lawsuit or substantial medical bills.

Property Damage Liability

Property damage liability coverage reimburses others for damage caused to their property due to your fault in an accident. This can include repair costs for vehicles, buildings, or other structures affected by the accident.

2. Collision Coverage

Collision coverage protects your vehicle in case of accidents involving collision with another vehicle or object, regardless of fault. This coverage helps cover repair or replacement costs, ensuring your vehicle is back on the road quickly. It is especially valuable for newer or more expensive vehicles.

3. Comprehensive Coverage

Comprehensive coverage provides protection against damages to your vehicle from non-collision incidents, such as theft, vandalism, hail, fire, or natural disasters. It helps cover the cost of repairing or replacing your vehicle, keeping you financially secure in unexpected situations.

4. Personal Injury Protection (PIP)

Personal Injury Protection, commonly known as PIP, is a coverage option that helps cover medical expenses, lost wages, and other costs associated with injuries resulting from an accident. PIP can also provide coverage for passengers in your vehicle, regardless of fault.

5. Uninsured/Underinsured Motorist Coverage

Uninsured/Underinsured Motorist (UM/UIM) coverage protects you in case of an accident where the at-fault party either doesn't have insurance or has insufficient coverage. This coverage helps pay for medical expenses, property damage, and other losses that result from such accidents.

Saving on Auto Insurance Premiums

1. Good Driving Record

Maintaining a clean driving record is crucial in securing lower auto insurance premiums. Insurance providers often offer discounts to individuals with a history of responsible driving. Avoiding accidents and traffic violations can translate into significant savings in the long run.

2. Defensive Driving Courses

Completing a defensive driving course can not only help improve your driving skills but also make you eligible for discounts on your auto insurance. These courses educate drivers about safe driving habits, making you less of a risk for insurance companies.

3. Increasing Deductibles

Opting for a higher deductible can lower your insurance premiums. However, remember that you will be responsible for paying the deductible amount out of pocket in case of a claim, so ensure you can afford the increased deductible before making this decision.

4. Bundling Policies

Consider bundling your auto insurance policy with other insurance policies, such as home or renters insurance, with the same provider. Insurance companies often offer discounts for multiple policies, providing additional savings for policyholders.

5. Vehicle Safety Features

Equipping your vehicle with safety features like anti-lock brakes, airbags, and theft deterrent systems can lower your insurance premiums. Insurance providers appreciate the reduced risk associated with these safety features, potentially leading to more affordable coverage.


At I Am Future Proof, we believe that being knowledgeable about auto insurance is vital for responsible vehicle ownership. By understanding the ABC's of auto insurance, you can make confident decisions that protect you, your vehicle, and your financial well-being. Remember, choosing the right coverage options and taking advantage of available discounts can ensure you have the peace of mind you deserve as you hit the road.