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Insurance is protection that you hope to never have to use. Unfortunately, Auto Insurance is the most often used insurance policy. Whether your fault or not, if your in an auto accident, the other driver is going to want to exchange insurance information. It’s a good feeling knowing that you are covered by a good company and a good policy. This article is intended to give you some basic information on auto insurance:



Deductible: The out-of-pocket expense you incur in the event of a claim. Example: Your car is damaged and needs $5000 worth of repair. Your deductible is $500. The company will pay all the expense over your $500 deductible.

Personal Injury Protection (PIP): Pays out of pocket medical expenses of the driver and/or passengers. Depending on your state, this may be required coverage or optional.

Uninsured Motorist Coverage: Covers you against expenses incurred from Bodily Injury in an auto accident where the other automobile was uninsured.

Under Insured Motorist: Covers you against expenses incurred from Bodily Injury in an auto accident where the other automobile was under insured.

Liability Coverage: Pays someone else for Bodily Injury or Property damage that you may have caused.

Collision Coverage: Protects you in the event your vehicle is damaged from a collision.

Comprehensive Coverage: Covers your vehicle in the event of loss or damage from anything other than a collision (flood, theft, fire, etc.)

Rental Reimbursement: If your vehicle is damaged and needs to be repaired, Rental Reimbursement covers alternate vehicle rental until your vehicle is ready. Usually a per day maximum cost is specified in policy.

Towing: Coverage that pays towing expense in the event of an accident.



The above terms make up all Auto Insurance Policies. Auto Insurance policies can be broken up into two basic types: Collision Coverage and Comprehensive Coverage

Collision Coverage: If you only have collision coverage, you are only protected against financial loss from damage done to another automobile or passengers. Your own vehicle would not be covered. Most states require that each vehicle be insured with a minimum of Collision Insurance.

Comprehensive Coverage: If you have collision coverage and comprehensive coverage, you are covered against loss from damage to your vehicle and loss from damage to another vehicle.

Every part of an Auto Insurance policy has specific terms, coverage limits and deductibles. Some states have minimums, which every policy must meet. Unfortunately the state minimums may not meet your needs. It is important to visit with your agent and discuss your policy and its features.

Make sure your policy includes all the benefits you need covered in section A of this article.





Shop It! Your driving record may not be the only factor for your insurance premiums. Many companies specialize in different markets. If you have a less than perfect driving record, your premiums may be less with an impaired Risk Auto Insurance Company than with a Standard Carrier. On the other hand, If your driving record is superb, you certainly don’t want to be insured by a company that insures high-risk expensive drivers. Shop to several companies to save on your rates.

Choose Your Deductible Wisely! If you never have claims and can afford a higher deductible, you should consider raising your deductible. This could save you hundreds of dollars on your insurance premiums.

Do You Need Full Coverage! If your automobile is not worth much more than your deductible, maybe it is not worth paying the extra premium for a full coverage policy. Your vehicle may not be worth repairing in the event of an accident.

Consult an Independent Agent! An independent agent can represent several insurance companies, giving you a wider choice of companies and coverage types. An independent agent can also shop you policy to the least expensive company.