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113 N 15th St
PO Box 199
Clarinda, IA 51632

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Most-forgotten Basics About Auto Insurance

Whether buying auto insurance online or through an agent in Clarinda, IA, it’s never easy. With many coverages, insurance jargon, and myths surrounding car insurance, it’s always never straightforward with auto insurance. 

The good thing is that you don’t need to be an insurance expert to understand auto insurance. Being in the know of the following basics of car insurance, as highlighted by Sump Insurance, will help you make an informed decision when shopping for car insurance. 

Reading your policy document

Most people are quick to sign off their auto insurance plan without understanding their policy document in detail. Understanding your policy document in and out is the first place to start if you are to get the most out of your auto insurance policy. 

Your policy document contains what’s covered and what’s not covered by your insurer. This way, you will not encounter surprises when filing a claim.

How insurance rates are determined

Ever heard someone say that red cars attract higher premiums? This is a blatant lie. Your car insurance rate is determined by factors like number of coverages, driving record, claim history, model of your car, your location, and personal details. 

While each insurance company has its way of determining insurance rates, it’s pivotal to have a rough idea of what goes into your insurance premiums. This way, you can deter your rates from increasing for factors within your control.

State-required minimums aren’t enough

Each state has mandatory requirements for auto insurance. In Iowa, for example, drivers are required to purchase bodily liability insurance. Besides, underinsured/uninsured motorist coverage is compulsory but can be rejected through writing.

While observing the state’s requirement is superb, these coverages are never adequate. The limits are inadequate, and the coverages cover other people, but not you and your vehicle. As such, we recommend motorists to consider optional coverages, including:

  • Comprehensive coverage
  • Collision coverage
  • Personal Injury Protection (PIP)
  • Roadside assistance

Would you like to learn more about auto insurance? Don’t hesitate to contact Sump Insurance of Clarinda, IA.

What Clarinda, IA Drivers Need to Know About Auto Insurance

What are your minimum auto insurance requirements in your state? In Iowa, there is a minimum liability coverage including: 

  • $20,000 of bodily injury or accidental death of one person in any accident
  • $40,000 due to bodily injury or death of 2 or more persons in any one accident
  • $15,000 due to injury or destruction of property in any one accident

Why Do States Put These Mandates in Place?

States put insurance minimums in place because those are the lowest numbers of injury, accidental death, or loss of property that the legislature believes should be covered in the event of an accident.

Remember, insurance was created to pay any liabilities you may incur due an accident that was due to your own negligence or some mishap due to your fault or misjudgment.

Iowa is a "fault" state, meaning the state does hold you responsible for your poor driving, but not the other driver. So you only pay if it is your fault. But unless you are a perfect driver, there is still a risk involved that threatens your financial situation.

Sump Insurance strives to help you cover not only the minimum state-mandated insurance requirements but also any other insurance coverage that you feel you need to protect your financial situation.

A good question to ask is: "Could I afford to lose the amount of money I might lose if I had a car accident taking this person with me to work or if I wrecked someone else’s car on the way home from ball practice, for example. Thinking of insurance as more than the paperwork you sign to get a policy is the first step. It’s important to think about the practical day-to-day applications of insurance that you might encounter, given the types of risks you have on a regular basis, to see how much insurance you might actually need.

Who is Sump Insurance?

Sump Insurance in Clarinda, IA services the Clarinda area and surrounding regions. We are experienced and friendly and we have the knowledge and expertise to get you covered for the most important risk areas you have and make sure you are meeting the minimums.

Contact Sump Insurance today and let us advise you on how to make sure you have the insurance you need to get you going down the road again with confidence!

Iowa Drivers, This is What You Need To Know About Auto Insurance

When you think of it, there are many ways auto accidents can occur. A blown tire, reversing into a wall, falling objects, crashing into another vehicle, and so forth. And even when you are careful, accidents can still happen. A distracted or careless driver can crash into you. Given that we can’t prevent vehicular accidents entirely, drivers need auto insurance for optimal coverage.

Not sure where to start? Here at Sump Insurance, located in Clarinda, IA, we will help you navigate Iowa’s auto insurance landscape. Here are things you should know about Iowa auto insurance.

Auto insurance is mandatory in Iowa State.

You know this, but we will say it nevertheless: auto insurance is mandatory in Iowa, and the state requires you to carry the below minimum coverages:

  • Bodily injury liability: Pays for medical expenses for injuries caused to third parties in a vehicular accident when you were at fault. The state requires you to carry a minimum of $20,000 for an accident involving one person and $40,000 for an accident involving more than one person.
  • Property damage liability: This covers property damage to other persons, but not you — for instance, you crashing into their car or reversing into their house. The minimum coverage required is $15,000 per accident.

There are other auto insurance coverage options.

While the state requires mandatory liability coverage, other car insurance policies exist to cover your vehicle against theft, vandalism, falling objects, hail, and other perils specified in your policy. Some of these coverages include:

  • Collision coverage to pay for damages to your car
  • Comprehensive coverage to cover your vehicle against theft, fire, and other risks
  • Medical payments to cover for medical costs arising from a vehicular accident
  • Road assistance to bail you when stranded on the highway

Auto insurance premium varies

Yes, your car insurance premium won’t be exactly like your friend’s, even though you have the same car model. Car insurance companies in Iowa use the below factors to compute your premium:

  • Your age 
  • Credit scoring
  • Your occupation and education level
  • Marital status
  • Gender
  • Zipcode
  • Claim history

Having the right auto insurance coverage can save you huge bills later on. Thankfully, for Clarinda, IA residents, you can get optimal auto coverage from Sump Insurance. Contact us today, and we shall take care of your car insurance needs.

Servicing States

  • Iowa
  • Nebraska
  • Missouri
  • Kansas

Why Work With Us?

  • Locally owned and operated
  • Works with multiple carriers
  • Combines policies for best rates
  • Customer friendly services
  • Have access to your auto ID cards from your phone

Partner Carriers

  • Auto-Owners Insurance
  • Cameron Mutual Insurance
  • Farmers Mutual Hail
  • Great American Insurance Group
  • Hagerty Classic Car Company
  • IMT Insurance
  • Nationwide
  • Pekin Insurance
  • ProAg
  • Progressive
  • RCIS
  • Travelers
  • West Bend Mutual Insurance