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!
|
How Credit Scores Can Boost Home Insurance Premiums
Got so-so credit? You are likely paying more in premiums than people with excellent credit.
Several car windows broken in Virginia Beach subdivision
VIRGINIA BEACH -- Police are investigating after several car windows were broken out early Monday morning in Virginia Beach. Police say the incidents occurred between midnight and 4 a.m. on various streets in the County View subdivision. David Nguyen said two of his car windows were broken. His insurance has a $500 deductible so he will have to cover the cost for repairing the cars. He hopes ...
When You Lend Someone Your Car, You?re Also Lending Them Your Insurance
In most states, car insurance generally follows the car and not the driver, so when you let someone borrow your car, in effect you?re also lending them your car insurance. When someone is driving your car, your car insurance will cover them unless: They are specifically excluded coverage under your policy You do not have [?]
State, congressional candidates go on the record with health policy issues
The physician who is campaigning to become Kansas's Lieutenant Governor talks health care payment models while candidates in Virginia, Massachusetts and Connecticut take on policies ranging from over-the-counter birth control to the interaction between the health law and Medicare.
McAuliffe's Plan Will Only Expand Health Care to 25,000 Uninsured Virginians
Virginia Gov. Terry McAuliffe is expected to announce his plan to expand health care for the state's poor on Monday, after failing to convince the GOP-led legislature to allow a Medicaid expansion earlier this year. The plan, "A Healthy Virginia," does not, of course, insure as many people as legislation would have. The plan also makes modest improvements to health plans for some individuals and ...
Fake Henrico doctor busted for filing fake accident claims
Insurance fraud is the second most costly crime in Virginia, even if it isn't one you usually see happening.
Gov. McAuliffe announces limited health care expansion
Virginia Gov. Terry McAuliffe plans to expand public health care to 20,000 mentally ill adult residents. But he will not try a large-scale unilateral expansion of the state's Medicaid program.
Importance of Med Pay Coverage If You Are Seriously Hurt in an Accident
Many people aren?t aware of a supplementary insurance coverage known as ?medical expense coverage?, or Med Pay, and how this coverage can be a huge help to you and your loved ones following a serious car accident. Med Pay coverage is not required in every state, and sounds somewhat redundant to carrying health insurance coverage, so many [?]
In greater Williamsburg, slow down or pay up
Locally, a speeding ticket costs $300+ for fine, court costs and insurance hike A speeding ticket takes minutes to issue, but Virginia drivers could pay for the citation for years.
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...
|
