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. Its 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
A FEW BASIC TERMS
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
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,
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 BASIC FACTS
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.
your policy includes all the benefits you need covered in section A of this article.
HOW TO SAVE SOME MONEY!
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 dont 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