How Car Insurance Works

how car insurance works

At Bell Road Toyota, our experienced team is ready to help you with all of your Toyota car needs from trade-ins to vehicle maintenance to Toyota financing. You can count on our team of seasoned Phoenix. AZ, Toyota dealers to help you with all of your automotive needs, including advice on topics such as car insurance.

What is auto insurance and why do you need it?

Auto insurance is a legal requirement, no matter what state you are in. Having auto insurance is a way of proving financial responsibility and helps protect drivers from the enormous costs that can be associated with an accident. If you are involved in an accident, your insurance company helps pay for your vehicle repairs and the repairs of the other driver’s car repairs, depending on who was at fault.

Insurance coverage options

The type of insurance required varies from state to state, but almost all states require you to have liability insurance. Whether you drive a new Toyota model or a pre-owned Toyota vehicle, you will want to ensure that your insurance provider can cover damages to the other driver if you are found to be at fault in the accident. This is often referred to “minimum coverage.” You will most likely want to have additional coverage options depending on how often you drive and how you use your vehicle. A few examples include:

Comprehensive coverage covers the repair or replacement of your vehicle for an incident that is not related to an accident with another vehicle. Think storm damage, theft, and damage caused by animals.

Personal injury protection covers the medical expenses of the policyholder and anyone in the car with you at the time of the accident.

Collision coverage covers damage to your vehicle if you hit another object with your car. If you run into a light post, collision coverage will help pay for repairs. This is a good policy add-on for new drivers who may be likely to make mistakes.

The cost of each plan will depend on several factors. For example, your insurance provider could calculate your risk based on your driving record, vehicle type, and occupation.

It can be overwhelming determining how much car insurance you need, but your local Phoenix Toyota dealer is ready to walk you through the options and find the best coverage plan for you. We look forward to welcoming you to our Toyota dealership near Scottsdale.