Frequently Asked Questions

Car Insurance: Affordable, Convenient, Full-Coverage If you’re thinking of buying a car or already have one, you should know that auto insurance is one of the most important things to have as an owner. It’s a legal requirement in 49 states, and it offers much-needed financial protection in case you get into an accident.

However, as essential as car insurance is, we understand that it can be quite confusing, as well.

Here at American General, our goal is to make this important financial tool more accessible to people from all walks of life. In this guide, we’ll tell you everything you need to know about car insurance, why you need it, and what your different options are.

Car insurance or auto insurance is a type of insurance designed to protect you financially in case you get into a vehicular accident.

Many Americans spend a big part of their days on the road, which alone raises the probability of incidents occurring. Add to that the existence of various factors, such as extreme weather conditions, drunk or reckless drivers, car failures — and you’re practically always in peril.

That’s where auto insurance comes in. You only have to pay your insurance provider a little bit every month, and they, in turn, give you financial coverage if you get into an emergency.

If you spend a large time on the road, having a good car insurance plan will set your mind at ease. Accidents are undoubtedly chaotic and scary. Being financially

protected means there’s one less thing to worry about should something go wrong. Getting good auto insurance also makes sense economically. Car accidents can be costly, especially if it entail repairing major damages to your vehicle or shouldering thousands of dollars in medical expenses.

Fortunately, the right insurance plan can help you cover whatever incidents you might face. Here at Magnum Insurance, we make it much easier for you to pick one based on your specific needs.

Just like any other type of insurance, getting auto insurance means regularly paying small amounts to your insurance provider. In return, if you ever get into an incident that qualifies under your coverage, the provider shoulders most, if not all, of the financial burden.

Nowadays, there’s an abundance of insurance products in the market, so it could be difficult to navigate between all of their complex differences.

Remember, the cost of your monthly premiums will depend on your insurance provider and your specific coverage. Similarly, qualified incidents and benefits are based on that, as well. That’s why it’s very important to do your due diligence when choosing your provider.

American General makes it easier for you to access the specific coverage you need, at the premium you can afford, and with the utmost customer care throughout. In other words, the American general is the perfect bridge between the complex insurance industry and the average consumer who just wants to save time and money when getting the best car insurance for them.

Regular maintenance and repairs: Insurance companies are not responsible for your car’s regular maintenance and repair expenses.

Ridesharing industry: If you drive for ridesharing companies such as Lyft or Uber, you’re going to need a separate policy from the traditional car insurance.

Individuals not in your policy: If a person other than you is driving your car during the accident in question, that person normally wouldn’t be covered by your insurance.

However, make sure to check your specific policy, as some allow special permissions for such cases. For instance, there are policies that allow friends and family, including your teenage children, as you live in one place.

Very high-value cars: Cars with a very high market price, like exotic, sports, or performance vehicles, are typically not covered by regular car insurance. You’ll need another kind of policy specific for high-value cars.

Personal belongings: Anything else other than the car itself won’t be covered by car insurance. For example, if a thief broke your window and stole personal belongings inside your vehicle, the car window will usually be covered, but not what was stolen. Now that we know what auto insurance doesn’t cover, it’s much easier to discuss what they do cover, especially in case you get into a car accident.

Specific car insurance coverage is often subdivided into particular insurance products that become part of your premium. However, it can be generally divided into three

Liability: Liability refers to any damage that you might cause while you’re driving your insured car. This type of coverage can include damage to property, damage to another vehicle, or injury to another person.

Personal injury: You can get compensated for any lost wages or medical bills that resulted from your accident. Depending on your policy, this can also include other people as long as they’re in the contract.

Collision: If your car was damaged due to collision events, such as vehicular accidents, damage from man-made structures, or clashes with other obstacles, collision coverage would help you pay for repair or replacement.

These categories are further subdivided into specific insurance products, which we will discuss in the next section.