Frequently Asked Questions on Automotive Insurance
How Does Car Insurance Work?
Instead of paying out of pocket for auto accidents, people pay annual premiums to an auto insurance company. The company then
pays all or most of the costs associated with an auto accident or other vehicle damage.
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance
company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
What Is Coverage like for Auto Insurance?
- Property coverage pays for damage to or theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
- Additional endorsements can include Replacement Cost Coverage on new autos, towing and rental coverage endorsements.
An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of
these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year.
Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium.
Why Do Premiums for Insuring Vehicles Vary?
Auto insurance premiums, or the amount policyholders pay to be insured, vary depending on: age, gender, years of driving experience,
accident and moving violation history, and other factors. Most states mandate that all vehicle owners purchase a minimum amount of
auto insurance, but many people purchase additional insurance to further protect themselves.
A poor driving record or the desire for more complete coverage will lead to higher premiums. However, you can reduce your premiums by
agreeing to take on more risk, which means increasing your deductible.
Get A Car Insurance Quote from Koch Insurance
To see how our auto insurance policies can help you feel secure on the road, please
contact us for a free quote. Koch Insurance agencies are located throughout South
Dakota, with office locations in Tea, Tyndall, Tabor, Springfield, and Yankton. We'll provide
you with all the information you need to make an informed decision on your vehicle safety.