How to Understand Different Auto Insurance Policies

How to Understand the Different Types of Auto Insurance Policies: Navigating the world of auto insurance can feel like deciphering a foreign language. From liability to collision, comprehensive to uninsured motorist coverage, the options seem endless. But understanding these different types of policies is crucial for protecting yourself and your finances. This guide will break down the complexities, making it easier to choose the right coverage for your needs and budget.

This guide will walk you through the various types of auto insurance coverage, explaining each in simple terms. We’ll cover liability, collision, comprehensive, uninsured/underinsured motorist, medical payments, and personal injury protection. We’ll also explore factors that affect premiums and provide tips for choosing the best policy for your situation. By the end, you’ll be better equipped to understand your policy and make informed decisions.

Introduction to Auto Insurance

Auto insurance is essentially a safety net for car owners. It protects you financially from the risks and costs associated with driving, such as accidents, theft, or damage to your vehicle. By paying regular premiums, you gain access to a pool of resources that can cover significant expenses that could otherwise bankrupt you. Think of it as a preemptive measure to mitigate potentially devastating financial consequences.Imagine you’re playing a game where you risk losing a significant amount of money if something goes wrong.

Auto insurance is like buying insurance for that game – a small, regular payment that safeguards you against substantial losses. If something unexpected happens, your insurance company steps in to cover a portion, or in some cases, all of the costs.

Types of Auto Insurance Coverage

Several types of coverage are available, each designed to address different potential risks. Understanding these options is crucial to choosing a policy that adequately protects you and your assets. The specific coverage options and their availability may vary slightly depending on your location and the insurance provider.

• Liability Coverage: This is usually legally required and covers damages or injuries you cause to others in an accident. It protects you from lawsuits and covers medical bills and property repair costs for the other party involved.
• Collision Coverage: This covers damage to your own vehicle, regardless of who is at fault in an accident. This means even if you cause the accident, your insurance will help repair or replace your car.
• Comprehensive Coverage: This covers damage to your vehicle from events other than collisions, such as theft, vandalism, fire, or natural disasters (like hail or flood). It’s broader than collision coverage.
• Uninsured/Underinsured Motorist Coverage: This protects you if you’re involved in an accident with a driver who is uninsured or underinsured. It helps cover your medical bills and vehicle repairs even if the other driver cannot pay.
• Medical Payments Coverage (Med-Pay): This coverage helps pay for medical expenses for you and your passengers, regardless of fault. It can cover things like doctor visits, hospital stays, and rehabilitation.

Understanding Policy Deductibles and Premiums

Your auto insurance policy will have two key components: the deductible and the premium. The premium is the regular payment you make to maintain your coverage. The deductible is the amount you pay out-of-pocket before your insurance coverage kicks in. For example, if you have a $500 deductible and your car repair costs $2,000, you would pay $500, and your insurance would cover the remaining $1,500.

Higher deductibles generally result in lower premiums, and vice-versa. Choosing the right balance between deductible and premium is a key aspect of selecting the right policy for your needs and budget.

Liability Coverage

Source: tataaia.com

Liability coverage is a crucial part of any auto insurance policy. It protects you financially if you’re at fault in a car accident that causes injuries or damage to someone else’s property. Understanding the different aspects of liability coverage is essential for ensuring you have adequate protection.Liability coverage is typically divided into two main components: bodily injury liability and property damage liability.

These components work together to cover the costs associated with injuries and damages resulting from an accident you caused. The amounts of coverage you choose, expressed as limits, are critical in determining how much your insurance company will pay out.

Knowing the difference between liability, collision, and comprehensive coverage is key to understanding auto insurance policies. This knowledge becomes even more crucial as you plan for retirement, as your needs and financial situation change. Check out this helpful article on The Role of Auto Insurance in Retirement Planning: What You Should Know to learn more about long-term planning.

Then, you can confidently choose the right policy to protect yourself and your assets.

Bodily Injury Liability and Property Damage Liability

Bodily injury liability coverage pays for the medical expenses, lost wages, and pain and suffering of others injured in an accident you caused. Property damage liability coverage, on the other hand, pays for the repair or replacement of the other person’s vehicle or other property damaged in the accident. It’s important to note that these coverages are separate; you could have significant bodily injury claimsand* significant property damage claims arising from a single accident.

Knowing how to understand the different types of auto insurance policies is crucial for financial protection. This understanding extends beyond just your car; consider the broader picture of income security, as explained in this helpful article on The Importance of Disability Insurance for Income Protection. Understanding your disability coverage is just as important as knowing your auto insurance, ensuring comprehensive financial safety nets.

For example, you might cause an accident resulting in serious injuries to multiple people requiring extensive medical treatment (high bodily injury liability claim) and significant damage to a brand new luxury car (high property damage liability claim).

Examples of Situations Where Liability Coverage Applies

Liability coverage would apply in various scenarios. Imagine you rear-end another car at a stoplight, causing injuries to the driver and damage to their vehicle. Your liability coverage would help pay for the other driver’s medical bills, lost wages, and vehicle repairs. Similarly, if you run a red light and hit a pedestrian, your liability coverage would cover their medical expenses and any other related costs.

Another example would be if you accidentally back into a parked car in a parking lot, causing damage to the parked car; your property damage liability would cover the repair costs. Even if the accident occurs on private property, liability coverage might still apply, depending on the specific circumstances and your policy.

The Importance of Sufficient Liability Limits

Choosing sufficient liability limits is paramount. Liability limits are expressed as numbers, such as 25/50/25. This means $25,000 per person for bodily injury, $50,000 total for all bodily injuries in a single accident, and $25,000 for property damage. These limits are often far too low to cover the potential costs of a serious accident. A severe accident could easily result in medical bills exceeding $100,000 per injured person.

If your liability limits are insufficient, you could be held personally liable for the difference, potentially leading to significant financial hardship, including wage garnishment, bank levies, and even bankruptcy. Therefore, purchasing higher liability limits, such as 100/300/100 or even higher, is strongly recommended to protect your financial well-being. The relatively small increase in premium for significantly higher coverage is a worthwhile investment in your financial security.

Collision Coverage

Collision coverage is a crucial part of many auto insurance policies, offering financial protection in the event your vehicle is damaged in an accident, regardless of who is at fault. This means that even if you cause the accident, your insurance will help cover the cost of repairs or replacement. It’s a separate coverage from liability insurance, which covers injuries or damages to

other* people or property.

Collision coverage works by paying for the repairs or replacement of your vehicle after a collision with another vehicle or object, such as a tree or a wall. The insurance company will assess the damage and determine the cost of repairs. If the vehicle is deemed a total loss (meaning the cost of repairs exceeds the vehicle’s value), the insurance company will pay you the actual cash value (ACV) of your car, minus your deductible.

Deductible and Out-of-Pocket Expenses

Your deductible is the amount of money you agree to pay out-of-pocket before your insurance company starts to pay for repairs. A higher deductible typically means lower insurance premiums (the amount you pay for your policy), while a lower deductible means higher premiums. The deductible significantly impacts your out-of-pocket expenses. For example, if you have a $500 deductible and your repairs cost $2,000, you would pay $500, and your insurance company would pay the remaining $1,500.

If the repairs cost less than your deductible, you would be responsible for the entire cost. Choosing the right deductible involves balancing affordability of premiums with the ability to cover a potential out-of-pocket expense.

Hypothetical Scenario: Collision Coverage in Action

Imagine Sarah is driving her car and loses control on a slick road, colliding with a parked car. The damage to Sarah’s car is significant, requiring $3,000 in repairs. Sarah has collision coverage with a $1,000 deductible. Her insurance company will assess the damage and approve the repair. Sarah will pay her $1,000 deductible, and the insurance company will pay the remaining $2,000 for the repairs.

If the damage had exceeded the car’s value, say $5,000, and the car was totaled, the insurance company would pay her the actual cash value of the car (let’s say $4,000) minus her $1,000 deductible, leaving her with $3,000. This demonstrates how collision coverage protects you financially from unexpected repair costs or the loss of your vehicle due to an accident.

Comprehensive Coverage

Comprehensive auto insurance protects your vehicle from a wide range of events beyond collisions. It’s a crucial layer of protection that goes beyond the basic liability and collision coverage, safeguarding you against unforeseen circumstances that could damage your car. Think of it as a safety net for all those “what ifs” that aren’t directly caused by a crash.Comprehensive coverage and collision coverage are distinct.

Understanding the different types of auto insurance policies, like liability and collision, is key to getting the right coverage. But knowing your options is only half the battle; you also need to know how to get the best price. Check out this guide on How to Save Money on Auto Insurance Without Sacrificing Coverage to find ways to lower your premiums.

Once you’ve found affordable options, you can confidently choose the policy that best fits your needs and budget.

While collision coverage handles damages resulting from accidents (like hitting another car or a tree), comprehensive coverage covers damage caused by anythingother* than a collision. This includes a wide variety of incidents, ensuring that you’re protected from a broad spectrum of potential risks.

Events Covered by Comprehensive Insurance

Comprehensive insurance typically covers damage or loss to your vehicle caused by events such as fire, theft, vandalism, weather-related events (hail, floods, windstorms), animal collisions, and even falling objects. It also often covers damage caused by glass breakage, regardless of the cause. The specific events covered can vary slightly depending on your insurance provider and policy, so it’s always a good idea to carefully review your policy documents.

Differences Between Collision and Comprehensive Coverage

The key difference lies in the

• cause* of the damage. Collision coverage only applies to damage resulting from an accident involving your vehicle and another object or vehicle. Comprehensive coverage, on the other hand, covers damage caused by virtually anything
• except* a collision. For instance, if a tree falls on your car, comprehensive coverage will apply. If you hit a tree, collision coverage would apply. If a hail storm damages your car, comprehensive coverage will cover the repair or replacement costs. However, if you hit a pothole and damage your car, that might fall under comprehensive, depending on the specific policy wording.

Examples of Comprehensive Coverage Benefits

Imagine your car is parked on the street, and a thief breaks into it and steals your stereo system. Comprehensive coverage would likely cover the cost of replacing the stolen stereo. Alternatively, consider a scenario where a hailstorm pummels your neighborhood, leaving your car with numerous dents and broken windows. Comprehensive coverage would step in to cover the cost of repairs.

Another example would be if a deer runs into your car while driving. While this might seem like a collision, many insurers classify animal collisions under comprehensive coverage. These are just a few examples illustrating the broad scope of protection comprehensive insurance offers.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist (UM/UIM) coverage is a vital addition to your auto insurance policy, offering protection in situations where you’re involved in an accident caused by a driver without adequate insurance or no insurance at all. It safeguards you and your passengers from significant financial burdens that can arise from medical bills, lost wages, and property damage. While liability coverage protects others from your mistakes, UM/UIM coverage protects

you* from the mistakes of others.

This coverage becomes especially crucial in situations where the at-fault driver is uninsured or their insurance limits are insufficient to cover your losses. Many drivers operate vehicles without insurance, either intentionally or due to lapsed policies. Even those with insurance may have minimal coverage limits, leaving you with a substantial shortfall if you suffer serious injuries or significant property damage.

Real-World Examples of UM/UIM Coverage Necessity

Consider these scenarios: You’re stopped at a red light when an uninsured driver runs into the rear of your vehicle, causing significant damage and injuring you. Without UM/UIM coverage, you’re responsible for all medical bills, vehicle repairs, and potentially lost wages – potentially tens of thousands of dollars. Or imagine a scenario where you’re involved in an accident with a driver whose liability coverage is only the state minimum, which might be $25,000.

If your medical bills exceed this amount, UM/UIM coverage would step in to cover the difference.

Financial Implications of Lacking UM/UIM Coverage

The financial consequences of not having UM/UIM coverage can be devastating. In accidents involving uninsured or underinsured drivers, you could face substantial medical expenses, repair bills for your vehicle, and lost wages due to time off work. These costs can quickly accumulate, potentially leading to significant debt and financial hardship. Even a seemingly minor accident can result in thousands of dollars in expenses, especially if injuries are involved.

Without UM/UIM protection, you would be solely responsible for these costs. The financial burden could be crippling, impacting your credit score, your ability to pay bills, and your overall financial well-being. In extreme cases, it could lead to bankruptcy.

Medical Payments Coverage (Med-Pay): How To Understand The Different Types Of Auto Insurance Policies

Medical Payments coverage, or Med-Pay, is a supplementary auto insurance coverage designed to pay for medical expenses resulting from a car accident, regardless of fault. This means that even if you caused the accident, your Med-Pay coverage can help cover your medical bills, as well as those of your passengers. It’s a valuable addition to your policy, offering a safety net in the event of injuries.Med-Pay coverage works by reimbursing you for reasonable and necessary medical expenses incurred due to an auto accident.

This includes doctor visits, hospital stays, surgery, physical therapy, and prescription medications. The coverage typically has a set limit, meaning it will only pay up to a certain amount, for example, $1,000 or $5,000 per person, depending on your policy. Once the limit is reached, you’re responsible for any remaining expenses. It’s important to note that Med-Pay is not intended to cover all medical costs associated with a lifetime of treatment.

It’s designed to help with immediate expenses after an accident.

Med-Pay versus Personal Injury Protection (PIP)

Med-Pay and Personal Injury Protection (PIP) are both designed to cover medical expenses following a car accident, but they differ significantly in how they operate and who they cover. Understanding these differences is crucial for choosing the right coverage for your needs.

Personal Injury Protection (PIP)

Personal Injury Protection (PIP) coverage is a valuable addition to your auto insurance policy, offering crucial financial protection regardless of who caused the accident. Unlike liability coverage, which protects others, PIP primarily covers your own medical expenses and lost wages after a car accident, even if you’re at fault. Understanding its benefits and variations across states is essential for making informed decisions about your insurance.PIP coverage offers significant benefits by helping to cover medical bills and lost income following a car accident.

Medical expenses can quickly mount after an accident, encompassing doctor visits, hospital stays, surgeries, physical therapy, and prescription medications. PIP helps alleviate the financial burden associated with these costs. Furthermore, if your injuries prevent you from working, PIP can provide compensation for lost wages, helping maintain financial stability during recovery. The amount of coverage varies depending on your policy limits and the specific state’s regulations.

PIP Coverage Variations by State

The availability and specifics of PIP coverage vary significantly from state to state. Some states mandate PIP coverage, requiring all drivers to carry a minimum amount. Others allow drivers to opt out of PIP coverage, while some states have no PIP laws at all. Even within states that mandate PIP, the required minimum coverage amounts differ considerably. For example, some states might require a minimum of $5,000 in PIP coverage, while others mandate $10,000 or even higher limits.

The specifics of what PIP covers (such as medical bills, lost wages, and other expenses) can also vary by state. It’s crucial to check your state’s specific regulations to understand your rights and coverage options.

Hypothetical Accident Scenario and PIP Application

Imagine Sarah, a resident of a state with mandatory PIP coverage, is involved in a car accident. Another driver runs a red light and hits her car. Sarah sustains injuries requiring several weeks of physical therapy and prevents her from working at her job as a freelance graphic designer. Her medical bills total $8,000, and she loses $4,000 in income during her recovery period.

If Sarah has a $10,000 PIP policy, her insurance will cover both her medical expenses and lost wages, up to her policy limit. Even though the other driver was at fault, Sarah’s PIP coverage directly compensates her for her medical bills and lost income, providing immediate financial relief without the need to wait for a potentially lengthy legal process with the at-fault driver’s insurance company.

If her policy limit were lower, say $5000, her coverage would only partially compensate her for the incurred costs.

Understanding the different types of auto insurance policies can be tricky, but it’s crucial for protecting yourself financially. Knowing the nuances of liability, collision, and comprehensive coverage is key, and directly relates to how well you protect your assets. To learn more about safeguarding your finances, check out this helpful guide on How to Protect Your Assets with the Right Auto Insurance Coverage and then return to comparing policy types to find the best fit for your needs and budget.

Factors Affecting Insurance Premiums

Your auto insurance premium isn’t just a random number; it’s a calculation based on several factors that assess your risk as a driver. Understanding these factors can help you make informed decisions and potentially save money on your insurance. These factors are carefully weighed by insurance companies to determine how likely you are to file a claim.Several key elements contribute to the final cost of your auto insurance.

These include your driving history, age, the type of vehicle you drive, and your location. Let’s explore how each of these impacts your premium.

Driving Record

Your driving record is a significant factor in determining your insurance premium. A clean driving record, free of accidents and traffic violations, will generally result in lower premiums. Conversely, accidents and tickets, particularly serious ones like DUIs, significantly increase your premiums. Insurance companies view these incidents as indicators of higher risk. For example, a driver with three speeding tickets in the past three years will likely pay considerably more than a driver with a spotless record.

The severity and frequency of incidents are crucial; a single at-fault accident might lead to a temporary premium increase, while multiple accidents and serious violations could result in a substantial and long-lasting impact.

Age

Age plays a crucial role in determining insurance premiums. Younger drivers, especially those under 25, generally pay higher premiums due to statistically higher accident rates in this age group. Insurance companies perceive them as higher risk. As drivers age and gain more experience, their premiums typically decrease, reaching their lowest point in middle age. This reflects the reduced risk associated with more experienced drivers.

However, premiums may slightly increase again in later years due to factors like declining eyesight or reflexes. For instance, a 16-year-old driver will almost certainly pay a much higher premium than a 40-year-old driver with a similar driving record.

Vehicle Type

The type of vehicle you drive also impacts your insurance premium. Sports cars and luxury vehicles, often associated with higher speeds and more expensive repairs, generally have higher insurance rates than more economical and less powerful cars. This is because the cost to repair or replace these vehicles is significantly higher. Insurance companies consider factors such as the vehicle’s safety rating, repair costs, and theft risk when setting premiums.

A new, high-performance sports car will undoubtedly command a higher premium than a used, smaller, fuel-efficient vehicle.

Hypothetical Premium Calculation, How to Understand the Different Types of Auto Insurance Policies

Let’s illustrate how these factors might influence a premium. Imagine two drivers, both 30 years old, living in the same area. Driver A has a clean driving record and drives a mid-sized sedan. Driver B has two speeding tickets and drives a high-performance sports car. Driver A’s premium might be $1000 per year, while Driver B’s premium could be significantly higher, perhaps $1800 per year, due to the risk factors associated with their driving record and vehicle choice.

This hypothetical example demonstrates the considerable impact these factors can have on the final cost. The actual premium would depend on many additional factors, including the specific insurance company, coverage levels, and location.

Choosing the Right Coverage

Selecting the right auto insurance policy can feel overwhelming, but a systematic approach can simplify the process. The goal is to find a balance between adequate protection and affordable premiums, tailored to your specific needs and risk tolerance. This involves carefully considering your lifestyle, driving habits, and financial situation.Choosing the right auto insurance policy requires a personalized strategy. Understanding your individual needs and risk tolerance is crucial in making informed decisions.

This involves assessing your assets, liabilities, and the potential financial impact of an accident. For example, someone with a high-value car and significant assets will likely need higher liability limits than someone driving an older, less valuable vehicle. Similarly, a driver with a history of accidents might require more comprehensive coverage to mitigate higher risks.

Steps to Selecting an Appropriate Auto Insurance Policy

This step-by-step guide will help you navigate the process of selecting the right auto insurance policy. Remember that your specific needs may vary.

1. Assess Your Needs: Determine the minimum liability coverage required by your state and consider your personal risk tolerance. Do you frequently drive in high-traffic areas? Do you have valuable assets to protect? These factors influence the level of coverage you should consider.
2. Compare Quotes: Obtain quotes from multiple insurance providers. Use online comparison tools or contact insurers directly. Make sure you’re comparing apples to apples – the same coverage limits and deductibles.
3. Review Policy Details: Carefully read the policy documents before making a decision. Pay close attention to exclusions and limitations. Understand what is and isn’t covered.
4. Consider Discounts: Inquire about available discounts, such as those for safe driving records, bundling policies (home and auto), or installing anti-theft devices. These can significantly reduce your premiums.
5. Choose Your Deductible: A higher deductible will lower your premiums, but you’ll pay more out-of-pocket in the event of a claim. Balance the cost savings with your ability to afford a higher deductible.
6. Review and Adjust: Once you have a policy, review it annually to ensure it still meets your needs. Your circumstances may change (new car, new address, etc.), necessitating adjustments to your coverage.

Considering Individual Needs and Risk Tolerance

Understanding your personal circumstances is key to selecting appropriate coverage. Factors such as the age and value of your vehicle, your driving history, and your financial situation all play a significant role. Someone with a brand-new luxury car will likely need more comprehensive coverage than someone driving an older, less expensive vehicle. Similarly, a driver with multiple accidents on their record might face higher premiums and might want to consider increasing their coverage to offset potential costs.

Negotiating with Insurance Providers

Don’t be afraid to negotiate with insurance providers. Shop around for the best rates and don’t hesitate to discuss your needs and explore potential discounts. For example, you could point out your clean driving record or inquire about bundling discounts if you have other insurance policies with the same company. Be prepared to switch providers if you’re not satisfied with the offered rates or coverage options.

A little research and proactive communication can often lead to significant savings.

Understanding Policy Documents

Your auto insurance policy is a legally binding contract. Understanding its contents is crucial to ensuring you have the coverage you need and to avoid disputes later. This section will guide you through the key components of a typical policy document, helping you decipher the often-complex language.Policy documents can seem daunting, filled with legal jargon and fine print.

However, understanding the key sections can empower you to make informed decisions about your coverage.

Knowing the difference between liability, collision, and comprehensive coverage is crucial when choosing an auto insurance policy. Understanding these basics helps you make informed decisions, but it’s also important to consider the long-term implications, as outlined in The Role of Auto Insurance in Estate Planning: What You Need to Know. This knowledge ensures your policy effectively protects you and your assets, further reinforcing the importance of understanding different policy types.

Key Sections of an Auto Insurance Policy

A standard auto insurance policy typically includes several key sections. These sections Artikel the specifics of your coverage, your responsibilities, and the insurer’s obligations. Familiarizing yourself with these sections will help you understand your policy’s scope and limitations. These sections often include the declarations page, the insuring agreements, the exclusions, and the conditions.

Common Policy Terms and Definitions

Insurance policies use specific terminology that can be confusing. Understanding these terms is essential for interpreting your policy correctly. For example, terms like “deductible,” “premium,” “liability limits,” and “exclusion” have precise meanings within the context of your insurance policy.

• Deductible: The amount you pay out-of-pocket before your insurance coverage kicks in.
• Premium: The amount you pay regularly (monthly, quarterly, or annually) to maintain your insurance coverage.
• Liability Limits: The maximum amount your insurance company will pay for damages or injuries you cause to others.
• Exclusion: Specific events or circumstances that are not covered by your insurance policy.

Understanding these terms, along with others defined within your specific policy, is vital for navigating claims and ensuring you receive the appropriate coverage.

Sample Policy Excerpt and Key Features

Let’s examine a hypothetical excerpt from a liability section of an auto insurance policy:

“The Company will pay damages for bodily injury or property damage for which an insured becomes legally responsible because of an auto accident. Liability coverage is subject to the limits of liability shown in the Declarations. The Company will provide a defense against claims, even if the claim is groundless, false, or fraudulent, but the Company is not obligated to pay for damages in excess of the applicable limits of liability.”

This excerpt illustrates several key features:* Coverage Provided: It clearly states the type of coverage (liability for bodily injury and property damage).

Conditions

It specifies that coverage is subject to the limits defined elsewhere in the policy (the Declarations page).

Defense Provided

It explains the insurer’s obligation to defend the insured against claims, regardless of their validity.

Limitations

It explicitly states that the insurer’s payment obligation is limited to the stated liability limits.This is just a small example, but it highlights the importance of carefully reviewing your entire policy document to understand all aspects of your coverage. Each policy is unique and will contain specific details relevant to your individual circumstances. If anything is unclear, contacting your insurance provider for clarification is always recommended.

End of Discussion

Choosing the right auto insurance policy is a critical decision that shouldn’t be taken lightly. By understanding the different types of coverage available and how they work, you can protect yourself financially in the event of an accident. Remember to carefully review your policy documents, compare quotes from different providers, and don’t hesitate to ask questions. Taking the time to understand your insurance can provide significant peace of mind knowing you’re adequately protected on the road.

FAQ Summary

What is the difference between liability and collision coverage?

Liability coverage pays for damages you cause to others, while collision coverage pays for damage to your own vehicle, regardless of fault.

How does my driving record affect my insurance premiums?

A poor driving record with accidents or tickets will generally lead to higher premiums, reflecting the increased risk you pose.

Can I choose my own repair shop after an accident?

It depends on your policy and your insurance company. Some policies allow you to choose, while others may direct you to a preferred network of shops.

What is a deductible?

A deductible is the amount you pay out-of-pocket before your insurance coverage kicks in. A higher deductible typically means lower premiums.

What should I do if I’m involved in an accident?

Stay calm, ensure everyone is safe, call the police, exchange information with the other driver, and contact your insurance company to report the accident.