Understanding Your Auto InsuranceBy Tom McKnight
Reading auto insurance policies can be like trying to decipher advanced calculus. It's really not that difficult if you understand a few basic terms. Collision, Comprehensive, Bodily Injury Liability and Property Injury Liability are the main terms you need to fully understand.
You'll appreciate Collision Coverage in the event you need repairs or replacements if your vehicle collides with another vehicle or property. The higher the deductible you elect, the lower your premiums will cost you. If you're at fault for something, well of course it would still be an accident, as I doubt you'd plan to run into that guard rail, but how much would you be able to afford to pay out of pocket for repairs? $250? $500? $1,000? Just like medical insurance, you'd have to pay that deductible amount first and then the insurance company would pay for the remaining charges for the repair.
Another term to become intimately familiar with is Comprehensive Coverage. This is the coverage that pays for damage caused from falling objects, fire, certain natural disasters, theft and vandalism. Deductibles work the same way as with Collision; the more out of pocket costs to you, the less your insurance premium.
In addition to knowing how much Collision and Comprehensive coverage you have, you'll want to know about your liability coverage. Let's say you rear-end another driver. Or your foot slips off the brake onto the gas pedal and you plow down a mailbox. Your liability coverage will kick in and pay for the damages that you caused with your insured vehicle. You liability coverage will, or could, include bodily injury (people) and property damage.
You don't want to go without Bodily Injury Coverage. If you were at fault in an accident and others involved needed to go to the hospital and/or lost wages from missing work, those costs would come out of your pocket if you are not insured with Bodily Injury Coverage. It doesn't take a genius to know how quickly those amounts can add up. This type of coverage can also help you in the event the other party takes legal action against you. Many states require you to carry Bodily Injury Coverage.
The other part of liability includes Property Damage coverage. Can you imagine how much it might cost should you accidentally drive into the side of someone's home? You wouldn't want to be caught without property damage insurance should you need to pay for repairs to another vehicle, building or anything else you might hit. As with Bodily Injury coverage, Property Damage coverage also helps protect you in the event of a related lawsuit.
Every policy will have its limits and various degrees of coverage. It's important that you understand the basics of what you are paying for and why it is necessary. No one plans for an accident, be prepared!
7 Things Your Kids Should Know When They Take a Car to College
Knowing the implications of car insurance while away at school should be on your college prep checklist.
AAA: Fewer driver's ed classes = more teen traffic accidents, convictions
BLOUNTVILLE ? Fewer students taking driver's education in high school has resulted in an increase in teenagers in car accidents and traffic convictions nationwide, according to a recently released AAA study.In the region, driver's education is a requirement in Virginia for those younger than 19 to get a license, but not across state line in Tennessee, where some local systems offer no driver's ...
Flood damage help depends on insurance coverage
Heavy rains submerged cars on Forest Avenue on Wednesday night and in the days after, motorists tried to figure out the damage and whether insurance covered them. Guests of the La Quinta Hotel saw the damage on Thursday. "We called our insurance company, they came, they took a look. They said it's totaled," said Jose Tovar of Long Island, New York. AAA of Northern New England had a 25 percent ...
It Pays to Be Gray: Senior Driver Discounts
Everyone wants to reduce their auto insurance premiums, right? Well, in 34 states and the District of Columbia getting older can be the ticket to cheaper car insurance. All you have to do is pass an approved driving class that...
Defensive Driving ?Boot Camp? for Teen Drivers Coming to Southern New Jersey Sept. 21
Drive Safer Hopes to Make a Dent in the Leading Cause of Death for Teens, Through Behind-the-Wheel Car Control Courses (PRWeb August 31, 2014) Read the full story at http://www.prweb.com/releases/2014/08/prweb12133643.htm
Do Self-Driving Cars Spell Doom for Auto Insurers?
The removal of fallible human drivers?and their steady premiums?could create havoc for auto insurers
AAA: Labor Day travel will be up slightly
More than 34 million Americans are expected to travel 50 miles or more from home during Labor Day weekend, up 1.
TrueCar Now Serving Targeted Manufacturer Incentives To Customers Of Insurance Affinity Partners
SANTA MONICA, Calif., Aug. 21, 2014 /PRNewswire/ -- TrueCar, Inc. (TRUE), the negotiation-free car buying and selling platform, today announced that it has launched major enhancements to the auto buying programs for its insurance affinity partners, specifically the integration of exclusive incentives from automakers uniquely tailored to the needs of total-loss customers. Through the TrueCar ...
Nearly 35 Million Traveling for Labor Day Says AAA, Highest Since Recession Driven Decline
ORLANDO, Fla., Aug. 21, 2014 /PRNewswire-USNewswire/ -- AAA Travel projects 34.7 million Americans will journey 50 miles or more from home during the Labor Day holiday weekend, the highest volume for the holiday since 2008 and a 1.3 percent increase over 2013. Nearly 86 percent of travelers (29.7 million) will celebrate the holiday with a final road trip before summer comes to a close and ...
Flooded cars on Craigslist? Tips to avoid a scam
ff you're planning on buying a used car in the next few months, it's a good idea to do a thorough inspection first.