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!
Which city has the highest auto insurance rates?
Survey ranks 25 nationwide; average annual premiums range from more than $2,000 to less than $500
Susan Tompor: Detroit drivers pay dearly for car insurance
Now it's official: Detroit has the most expensive car insurance among the largest 25 U.S. metro markets, according to insuranceQuotes.com.
Lyft hearing examines insurance
A witness for the Pennsylvania Insurance Federation, a Pennsylvania trade group, tried to explain Wednesday why the insurance coverage that San Francisco ride-sharing company Lyft is proposing is problematic.
Car thief spotted at wheel of stolen vehicle by police
A THIEF drove off in a car after taking its keys when he broke into another vehicle parked nearby.
Can I Buy Insurance After Being Injured In An Accident?
Now that the federal health law forbids denial of insurance for pre-existing condition, some people have wondered if they can wait until they get sick to buy health coverage. Let's say an uninsured person is in a car accident, has emergency surgery and is hospitalized, and after awaking from surgery asks to purchase insurance right away. Under the health law, would his medical costs be covered ...
Personal Injury Lawyer Jennifer Gore-Cuthbert, a Guest on Business Radio X's "Atlanta Legal Experts" Show
Jennifer Gore-Cuthbert with The Gore Law Firm, appeared on "Atlanta Legal Experts" to discuss car accidents, diminished value claims, and insurance coverages. (PRWeb September 03, 2014) Read the full story at http://www.prweb.com/releases/2014/09/prweb12135662.htm
Ask Andy: How to avoid buying a flooded vehicle
Chief Consumer Investigator Andy Wise says no title, no deal -- and it better not be a salvage title.
Renting a car? Know whether your card adds insurance
Renting a car can put your credit card benefits into play, but only if you know what's covered and avoid the exclusions
5 Insurance Policies Everyone Should Have
Insurance policies come in a wide variety of shapes and sizes. Shop carefully and the right policies will go a long way towards helping you protect your assets.
Under Georgia Law, Not All Hot Car Deaths Are Treated Equally
Justin Ross Harris, the Georgia father who left his two year old son to die in a hot car, has been indicted for murder by a grand jury. Harris faces eight criminal counts: malice murder, cruelty to children in the first degree, cruelty to children in the second degree, criminal attempt to commit felony exploitation of children, two counts of felony murder, and two counts of dissemination of ...