MetzWood’s Guide to Car Insurance & Auto Coverage

On an average day, you’re probably not thinking about your auto coverage. But if you’re buying a new car, making a claim after a collision, or even trying to lower your bill, you’re probably wishing you knew more about your policy. At MetzWood, car insurance is our forte, and we’re here to help you understand the process. Here is our helpful guide to securing the right auto coverage. 

What is car Insurance and why do I need it?

At its core, car insurance is a contract between you and an insurance company, which provides financial protection in case of car-related incidents. It's not just a recommendation - it's a legal requirement in all 50 states. It serves as your financial safety net in case of accidents, theft, and other unexpected events that could significantly impact your financial security.

The Different Types of Car Insurance Coverage

Every driver's needs are unique. That's why there are different types of car insurance coverage to fit these diverse needs. Here are the most common types:

  1. Liability Insurance: This is the most basic type of car insurance and a legal requirement in most states. Liability insurance covers bodily injury and property damage that you might cause to other people in an accident where you are at fault.
  2. Collision Insurance: This policy covers the cost of repairing or replacing your car in case of an accident, regardless of who's at fault.
  3. Comprehensive Insurance: Comprehensive insurance covers damage to your car that's not due to a collision, such as theft, vandalism, fire, natural disasters, and hitting an animal.
  4. Uninsured/Underinsured Motorist Insurance: This type of insurance protects you if you're involved in an accident with someone who doesn't have insurance or doesn't have enough insurance to cover the damage.
  5. Personal Injury Protection (PIP) / Medical Payment Coverage: PIP covers your medical expenses and sometimes even lost wages, regardless of who's at fault in an accident.
  6. Gap Insurance: This is especially useful for new cars. If your vehicle is totaled or stolen, gap insurance covers the difference between what your car is currently worth and what you still owe on it.
  7. Motorcycle Insurance: Motorcycles require their own type of insurance due to the unique risks associated with riding. In addition to the standard coverages, you may want to consider custom equipment coverage, roadside assistance, and accessory coverage.
  8. Classic Car Insurance: Classic cars, usually defined as vehicles 25 years and older, need specialized insurance because their value doesn't depreciate like regular cars. Classic car insurance often considers the "agreed value" of the vehicle rather than the "actual cash value."


Understanding Your Auto Insurance Deductible

The deductible is the amount of money you agree to pay out-of-pocket before your insurance coverage kicks in. It directly impacts the cost of your insurance premium. For example, if you have a $500 deductible and you have a collision that results in $2,000 of damage, you will pay the first $500 and your insurance company will pay the remaining $1,500. Higher deductibles can lower your premium, as you're assuming more of the risk. But remember, it's important to set a deductible at a level that you're comfortable with and is financially feasible for you in the event of a claim. 

Tips for Lowering Your Car Insurance Rate

Who doesn't love saving money? Here are some strategies you can implement:

  1. Maintain a Clean Driving Record: The safer you drive, the lower your risk in the eyes of the insurance company, hence the lower your premium will be.
  2. Bundle Your Policies: If you have more than one insurance policy (like home and car), consider bundling them with the same insurer to get a discount.
  3. Increase Your Deductible: A higher deductible can lead to lower premiums, but be aware that this means you'll pay more out-of-pocket in case of an accident.
  4. Take Advantage of Discounts: Many companies offer discounts for various reasons, like being a safe driver, a good student, or having anti-theft devices in your car.
  5. Regularly Review Your Policy: Your circumstances can change, and so can insurance rates. Make a habit of reviewing your policy every year or so to ensure you're getting the best deal.
  6. Take a Defensive Driving Course: Talk to your insurance provider about what defensive driving courses are available or follow this handy list from the New York State DMV.


Understanding your car insurance options empowers you to make informed decisions that suit your needs. Whether you're insuring a brand-new car, a classic cruiser, or a motorcycle, being aware of the different types of coverages available and how you can lower your rates is critical. Remember, an informed consumer is a smart consumer. Want to assess your current auto insurance and see how you can save? Contact us today! 

Here's to safe and savvy driving!

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