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!
|
When to Drop Collision -- and Risk it All
Wondering whether to keep collision coverage as part of your auto insurance? Do the math. And ask yourself: Can I write off this car?
Not Caring About Personal Privacy Might Lead to Auto Insurance Discounts, Says 4AutoInsuranceQuote
The Website Just Posted a New Article that Explains How People who are Not Concerned with this Issue Might Get Better Auto Insurance Rates New York, NY / ACCESSWIRE / September 12, 2014 / 4AutoInsuranceQuote.com, ...
15 Insurance Policies You Don't Need
Learn how to save money by saying "no" to unnecessary coverage.
When you lend your car, think about the insurance
Do you lend your car to friends, family, or even strangers who hook up with you through a car-sharing smart phone app? If you do, remember that you're also often lending those other drivers your ...
Detroit Has Most Expensive Car Insurance, Charlotte Has Cheapest
SAN FRANCISCO, Sept. 11, 2014 /PRNewswire/ -- Detroit has the most expensive car insurance and Charlotte has the cheapest, according to a new insuranceQuotes.com examination of average premiums in the ...
AutoInsuranceApe.com?s New Infographic Helps Clients Compare Car Insurance Quotes and Discounts
The Illustrated Infographic Educates Readers About 17 Different Types of Car Insurance Discounts Available on the Market Los Angeles, CA / ACCESSWIRE / Aug 21, 2014 / AutoInsuranceApe.com, a website that ...
Blog: Philly Region 8th Most Expensive For Car Insurance
By Jim Donovan: Philadelphia has the eighth-most expensive car insurance in the nation, according to a new insuranceQuotes.com examination of the 25 largest U.S. metropolitan areas. Car insurance in our area costs about 10% more [?]
Car Insurance Rates Finder for California Agencies Added to National Tool at Insurer Portal Online
Car insurance rates finder is now helping drivers to review California agencies for low prices at the Quotes Pros website at http://quotespros.com/auto-insurance.html . (PRWeb September 12, 2014) Read the full story at http://www.prweb.com/releases/car-insurance-rates/auto-insurance-quotes/prweb12166539.htm
Technology Is Radically Changing The Advertising Business ? And The Consequences Are Profound
The Economist A FEW MONTHS ago Progressive, an insurance company, ran a video ad on Facebook featuring a grown man who acts like a baby and is carried around in a sling. The ad urged youngsters to ?act your age? by renouncing their parents? car insurance and buying their own. When Facebook employees chuckled about it during a meeting, David Fischer, the firm?s 41-year-old head of marketing ...
Why Motor City is an Expensive Place to Drive
Detroit may have one of the lowest costs of living in the country, but its residents are paying 165 percent more for car insurance than the national average, according to a new analysis by InsuranceQuotes.com. The average cost of car insurance nationwide was $797 in 2011 (the most recent data available), according to the National Association of Insurance Commissioners. Motor City residents pay ...
|
