What is personal auto insurance?
A personal auto insurance policy is a packaged insurance policy providing coverages tailored to the needs of most vehicle owners. The key coverages available for an auto policy are bodily injury and property damage liability, medical payments, uninsured & underinsured motorist, and physical damage (collision & comprehensive).
All auto policies will include bodily injury and property damage liability coverages for damages caused to others, but you have the option to purchase more coverages and decide how much of each you want to purchase. If you purchase physical damage coverages for your own vehicle, you can also add on additional coverages, called endorsements. Typical endorsements include coverages for roadside assistance, loss of use (rental car), loan/lease (gap), and more.
What does personal auto insurance cover?
Liability Coverages: Automobile liability insurance is coverage that protects the insured against financial loss because of legal liability for automobile-related injuries to others or damage to their property by an auto. For example, if you are at-fault in an accident with someone, liability coverage protects you from having to pay out of pocket for their medical expenses and car repair (up to the limits of your policy). If you’re required to pay them more than your policy limits cover, anything above your policy limits would have to be paid out of pocket.
Bodily Injury Liability Coverage: This coverage can help cover someone else’s bodily injury damages, such as medical bills, if a policy holder is determined to be at-fault for the accident. The State of Oklahoma requires drivers to carry a minimum coverage limit of $25,000 per person and $50,000 per accident, but this may not be enough in many situations. I recommend considering much higher limits if your budget will allow. The average legal cost for an auto loss is just under $40,000. However, serious injuries can be very expensive and the injured party(ies) may also sue for rehabilitation, plastic surgery and loss of income.
Property Damage Liability Coverage: This coverage can help cover someone else’s property damages, such as car repair, if you are determined to be at-fault for the accident. The State of Oklahoma requires drivers to carry a minimum coverage limit of $25,000 per accident, but this may not be enough in many situations. I recommend considering a much higher limit if your budget will allow. Accidents in intersections can involve multiple vehicles.
Medical Payments Coverage: This coverage can help pay for reasonable medical expenses resulting from an auto accident, regardless of who’s at fault. Medical payments coverage is limited to the individuals in the policy holder’s vehicle.
Uninsured & Underinsured Motorist Coverage: This coverage can help pay for bodily injury losses to you and your passengers caused by uninsured motorists, hit and run motorists or motorists with insufficient limits of liability to compensate for the injuries sustained. Uninsured & Underinsured motorist coverage is highly recommended so drivers and their passengers don’t have to rely on healthcare insurance. Without this coverage in this situation, an injured person would have to take the at-fault driver to court in hopes of reimbursement for medical expenses. The State of Oklahoma reports that about 25% of Oklahoma drivers are uninsured.
Physical Damage Coverages: Physical damage coverages consist of collision and comprehensive coverages. Most people who carry these coverages refer to it as having “full coverage”, although this is a slang term and isn’t officially recognized by the insurance industry. This covers the insured driver’s own vehicle when involved in a covered accident or claim. The State of Oklahoma does not require drivers to carry physical damage coverages, but if a vehicle is financed or leased, the lien holder or lease company will require them to be carried and be listed as an additional insured on the insurance policy to protect its financial interests.
Collision Coverage: This coverage can help provide reimbursement for damage to the insured’s own vehicle due to its colliding with another vehicle or object, or the overturn of the vehicle.
Comprehensive Coverage: Also referred to as “other than collision” coverage, this coverage can help provide reimbursement for damage to the insured’s own vehicle resulting from causes other than collision. It covers losses from causes such as falling objects, fire, theft or larceny, explosion or earthquake, windstorm, hail, water or flood, vandalism, riot or civil commotion, contact with a bird or animal and breakage of glass.
If a vehicle is older, high-mileage or not worth repairing after an accident, physical damage coverage may not be worth carrying. Also, parents of teenage drivers can opt out of this coverage for their teen’s vehicle to save some money on insurance. Keep in mind that without this coverage, any repairs to your vehicle may have to be paid out of pocket.
Endorsements:
Endorsements are optional coverages that can be added to an insurance policy. The following endorsements are available if physical damage coverage is carried. The most common auto policy endorsements can help pay for auto glass, roadside assistance and rental vehicles; although there are many more endorsements available.
Full Glass Coverage: This coverage can help provide for reimbursement for damage to the glass in insured’s own vehicle. It commonly covers losses from causes such as hail storms, rocks or other objects hitting a windshield and vandalism. Full glass coverage offers a lower deductible, usually $50-$100, depending on the insurance carrier. So with full glass coverage, an insured may only pay the cost of a $50-$100 deductible to replace all the glass in their vehicle after a hail storm.
Roadside Assistance Coverage: This coverage can help pay expenses associated with towing, tire service, battery service, fuel delivery, locksmith service, roadside repairs and trip interruption coverage. Each carrier offers different limits of coverage.
Loss of Use Coverage: This coverage can help pay expenses associated with temporarily renting a vehicle while your car is being repaired or replaced after a covered accident or claim. Each carrier offers different limits of coverage. Rental companies have been experiencing shortages and rental costs have been going up over the past year due to inflation. If you choose a rental vehicle that exceeds the limit of your coverage, you’ll have to pay the excess out of pocket.
What is a deductible?
A deductible is the out of pocket expense that the insured policyholder is responsible for when paying for the repair of the driver’s own vehicle after a covered accident. All other expenses after the deductible would be paid by the insurance carrier. The deductible chosen depends on the insured’s budget. The higher the deductible, the lower the premium. The lower the deductible, the higher the premium.
Why do I need personal auto insurance in Oklahoma?
If you’re involved in an auto accident, you may have to pay expenses for car repairs, medical bills, lost wages and more. Without the coverages you need, you could have to pay those bills out of your own pocket. Oklahoma is an “at-fault” state, which means that the driver deemed responsible for a crash is financially responsible for all damages. Auto insurance can help cover those expenses, which could protect you from financial ruin.
Who needs personal auto insurance in Oklahoma?
All vehicles operated on Oklahoma roads are required to be insured and registered.
What is the minimum personal auto insurance coverage required in Oklahoma?
In Oklahoma, drivers are required to at least carry liability insurance, which can help pay for bodily injuries and property damage of others if you’re at-fault in an accident. Proof of insurance must be carried in the vehicle at all times. Although it’s not enough to cover the average bodily injury claim, the minimum liability coverage amounts required in Oklahoma are “25/50/25”, which are described as follows:
- $25,000 bodily injury liability per person.
- $50,000 bodily injury liability, total per accident.
- $25,000 property damage liability.
If your vehicle is financed or leased, the lien holder or lease company will require you to carry physical damage coverage, known as collision and comprehensive coverages to protect its financial interest in your vehicle.
How much does personal auto insurance cost in Oklahoma?
According to data from 2019 published by the Insurance Information Institute, Inc. (Triple-I), Oklahoma ranked the thirty-first highest in the nation for average auto insurance premiums. Back in 2019, the average annual auto insurance premium in Oklahoma was $908.95, compared to the national average of $1,080.47. Today’s premiums are higher due to inflation, an increase in costs of building materials and employee shortages. The top three most expensive states were (1) Louisiana, (2) Michigan and (3) New York.
One of the largest factors that affect the cost of auto insurance is exposure to risk. Vehicle owners in Oklahoma have a high exposure to wind/hail, tornados, theft and deer.
How can I get the lowest personal auto insurance premiums in Oklahoma?
There are many factors that determine an insured’s premium rate. Some factors are out of our control, such as our age, the economy, cost of building materials and all of the insurance claims being filed in the region. However, some of our life decisions can make an impact on our insurance premiums, such as our credit rating, driving record and recent insurance claims. Below are a list of several ways you can get the best rates in Oklahoma:
- Shopping multiple insurance carriers at once with an independent insurance agency like Scherer Insurance
- Having good credit history
- Having a good driving record
- No recent insurance claims
- Having a college degree
- Being married
- 3+ years at your residence
- 3+ years at your workplace
- 3+ years with your current insurance carrier
- 3+ years with continuous insurance coverage
- 3+ years owning your vehicle
- Garaging in a low-crime ZIP code
- Not using your vehicle for business, delivery, transportation network or carpool
- Companion “bundling” policies such as your home and auto policies with the same carrier
- Opting for a higher deductible
- Opting for higher than the state minimum required limits
- Owning your home instead of financing or renting
- Owning your car instead of financing
- Paying your premium in full
- Paying via EFT payments as opposed to mailing checks
- Retired or a senior citizen
- Students with good grades
- Young drivers who have taken drivers education
- Installing a device or downloading an app that monitors driving behavior
- Anti-theft devices
- Anti-lock brakes, air bags or daytime running lights
- Being a member of an auto club or organization
- Declining collision or comprehensive coverage for older, high-mileage vehicles that may not be worth repairing
- Keeping your car in a garage
- Driving fewer miles
- and many more
When you request a quote from Scherer Insurance, you can be confident that every possible credit and discount will be requested.
How can I buy personal auto insurance in Oklahoma?
There are two easy ways to get a quote or request more information for personal auto insurance in Oklahoma:
- Call/Text (405) 605-9891
- Email jp@schererinsurance.com