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If you drive, you need auto insurance. But many drivers still cruise around town uninsured. But why? It's because they don't think they'll end up in an auto accident. However, everyday hundreds of drivers find themselves in auto accidents, and I'm sure it's safe to say that they weren't expecting it.
Auto insurance is security. It's a way to protect your car, yourself, and other drivers while on the road. Auto insurance policy
holders pay premiums and in return, the auto insurance company subsidizes expenses involved in an auto accident. It's a way to protect drivers against costly car repair, hospital, and even legal bills as a result of an auto accident
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But there isn't just one type of auto insurance available. Drivers have a few options they can choose from when selecting an auto insurance policy
. Drivers can choose the level of coverage and liability of their policy. However, more liability and coverage means higher premiums. So how do you decide what policy to get?
What to Select:
When shopping for auto insurance, you first need to establish what type of coverage the state requires you to have and what additional coverage you want.
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Different states have different auto insurance coverage laws, so be sure to check with the DMV or your auto insurance company about specific state requires. But, in addition to state required levels of coverage, you can always add additional coverage to your policy. Standard coverage options include medical coverage, collision, and comprehensive coverage. Liability coverage options include injury and property damage.
If you want to protect yourself from paying high medical fees for someone you injured in a car accident, include injury liability to your policy. With most policies, you can even state the level of liability coverage, dictating how much your insurance company will cover and what your premiums will be.
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What Not to Select:
Some people see auto insurance as a burden. They think they're perfect drivers and will never get in an auto accident. And if they do, it won't be their fault and the driver at fault will pay for any necessary repairs and medical expenses. So, they opt for the most inexpensive or basic coverage possible.
If you're one of these "perfect drivers" who thinks this way, you're not looking at the entire picture. What if you're rear ended and injured by an uninsured driver who flees the scene and is never found? Now you're stuck with medical and car repair expenses. If you had a policy that covered you in such an event, you wouldn't be stuck with the entire bulk of the bills. Basic auto insurance only provides basic coverage; and the term "basic coverage" means different things to different insurance companies. If you're shopping for auto insurance, don't just ask for the most inexpensive and basic policy. Think about what you need to keep yourself safe on the road in any situation. You never know what will happen when you're on the road.
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Different Types of Auto Insurance Coverage
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You know you need car insurance, but do you really know what the different types of auto insurance coverage are? How much car insurance you need? Or how you can find the best rate on car insurance? Here's a simple guide that answers those questions.
Different types of auto insurance coverage :
Car insurance protects you against financial loss if you have an accident or your car is stolen. A car insurance policy can include several different types of coverages:
* Bodily injury liability, which pays for injuries that you cause someone else.
* Property damage liability coverage, which pays for damage that you cause to someone else’s property.
* Medical coverage, which pays the cost of treating your injuries, or those of your passengers, after an accident.
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* Collision coverage, which pays for damage to your car caused by flipping over or colliding with another car or an object.
* Comprehensive coverage, which pays you if your car is stolen or damaged by something other than a collision.
* Uninsured and underinsured motorist coverage, which pays if you're hit by a driver who doesn’t have enough insurance.
* Towing and rental coverage, which pays if you have a breakdown and need to have your vehicle towed and if you need to rent a vehicle while yours is being repaired.
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How much insurance do I need ?
Most states have minimum insurance requirements for liability insurance. You can check your state’s department of insurance website to find out what the minimum requirements are for your state. Note, though, that you may want to buy higher limits of coverage.
Collision or comprehensive coverage is not required by state law, but if you're buying a new car your lender may require it.
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How do I find the best rate on car insurance ?
To save time and money
when you shop for car insurance, go to an insurance comparison website where you can compare quotes from multiple insurance companies. As an added benefit, the best insurance comparison websites have insurance professionals on hand to answer your car insurance questions.
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Optimal Auto Insurance Coverage
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The optimal auto insurance coverage
is unique for every different driver. Determining coverage depends on the needs of the consumer. In considering coverage when purchasing a policy the consumer must take into consideration types of coverage for the liability of damages to others, the consumer’s own vehicle, and coverage for the miscellaneous like towing and rental.
Good coverage may vary amongst consumers but good coverage is what satisfies the needs of the particular individual shopping for coverage. Liability insurance is the most basic form of automobile policies and is also the state law for states like California or Arizona. Each state has their own liability coverage minimums, which covers the damages onto the other party when involved in an accident. But having a policy with only the state minimum in coverage may not be sufficient to cover most accidents. Having the protection of higher liability coverage may protect the consumer if an accident’s damages or medical expenses exceed the state’s required minimum. Having higher liability coverage maximums will protect the consumer from having to pay for the expenses out of pocket, which can amount to thousands of dollars.
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Transportation is important to daily life and having no transportation leaves a person’s daily life in a flux by not being able to get to work or school. State insurance laws only mandate cover for liability coverage. There are no laws that mandate coverage of your own vehicle. If involved in an accident, the policyholder, if at fault, will have no protection for their vehicle if they purchased liability only. This will leave many policy holders out of luck and no means to finding a replacement vehicle. Having good coverage would also include covering the vehicle that the policy holder owns.
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There are two basic forms of coverage for the vehicle of the policy holder. Generally, one is collision coverage and the other is comprehensive coverage. Collision coverage covers the vehicle of the policyholder if involved in a collision with an object, like another car. Comprehensive coverage usually covers theft and vandalism. By having either or both coverage the consumer’s vehicle is protected against high bills or replacements of vehicles, the only thing that is involved is the deductible. Deductibles vary from $100 to $1000 or more.
Choosing the proper deductible generally relies on the consumer’s choice of premium costs, if having a lower deductible it will result in a higher premium. Choosing the proper deductible depends on the consumer and their gauge of affordability and protection. By choosing the lower deductible, it reduces the stress of having to pay that amount out of pocket if involved in accident. The lower the deductible, the less the consumer would have to worry about covering costs out of pocket if there is a need to file a claim. However, having the options of coverage in both collision and comprehensive would ensure the consumer peace of mind that they would not have to worry about not having a vehicle after an accident.
The best way to determine the needed coverage is through an online auto insurance quote comparison from a variety of quality companies with one simple process. Drivers only have to complete one simple form to get quotes for the needed protection. When getting quotes, don't forget to consider factors such as towing and rental which are often overlooked in selecting a policy. Having a vehicle disabled during an accident the policy holder will be liable for the towing costs of moving that vehicle from the accident to the home or to a repair shop. Towing costs may amount to $150 or more each move. Having towing coverage in a policy is an ideal way to protect the consumer from any of these unnecessary costs.
During any accident, there is a possibility that the vehicle will not be drive-able or if the vehicle is in a repair facility due to the accident this would cause the policy holder to look for a temporary vehicle. Having a good policy would include rental coverage. Choosing rental coverage covers for a rental due to the result of a policy claim, usually a set amount per day. For example 25/day covers for the costs of a rental that would go up to 25 dollars a day.
Rental coverage usually has a maximum number of days for each claim. Choosing the proper rental coverage and the proper amount of days is crucial in maintaining daily life activities in the aftermaths of an accident.
Having a good policy would include considering not only the state minimum liability coverage, but higher liability to protect the policy holder if accidents are major. A good policy will also include auto insurance coverage of the policyholder’s vehicle because most of the time accidents don’t just involve only one vehicle. And another factor in having a good policy is attention to the more minor factors such as towing and rental car coverage and the amount of the deductible for collision or comprehensive. The key is balancing the proper protection with the reduction of risk to the consumer to having pay out of pocket for any expenses that may arise when there is an accident.
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Get The Right Auto Insurance Coverage
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Trying to get an auto insurance coverage for your new vehicle? This is really something important to do these days, not only so you could enjoy appropriate coverage when you encounter accidents or something but it is actually legally required in most states within the country to have this insurance. In most cases, you could even get arrested and receive some points on your driving record I you get caught driving without it.
Yes, it is that important to get your own auto insurance
. As you try to decide which insurance company would best meet your needs and fit your budget, you should also check the reputation of the insurance company so you would really be sure that you will get your money’s worth. First of all, you should check if the company ever gets complaints about their claim process. On top of that, you should also check about how long it takes to receive a claim from them so you would know in advance. It would be disappointing to need something quickly and then find out that the company will only be bale to provide that after a few days.
Of course, different auto insurance companies have their own ways of processing claims. For example, there are some companies that offer their clients with 24-hour claims service. Also, some companies manage the claims themselves while there are also others that outsource it. If you will know about these things in advance, then you will surely be able to decide which one would be best for you.
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Minimum Auto Insurance Coverage
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Looking to purchase the minimum auto insurance coverage
for your car? Want to know where to get the cheapest rate?
What's the minimum auto insurance coverage I need to drive?
It varies from state to state. In most states you need to have liability insurance to legally drive your car. A few states also require you to have personal injury protection and uninsured motorist coverage.
Here's what those coverages mean :
Auto Insurance Coverage pays claims made against you, your family, or someone driving with your per Liability coverage pays claims made against you, your family, or someone driving with your permission, for property damage, physical injury, and death.Liability coverage is expressed by three numbers. The first two numbers refer to bodily injury coverage while the third number refers to property damage coverage. So 15/30/10 means $15,000 coverage for one person injured in an accident, $30,000 coverage for all persons injured, and $10,000 coverage for property damage.
Personal injury protection coverage pays your medical expenses and your passenger's medical expenses when you have an accident. It also pays you and your family's medical expenses if you're involved in an accident in someone else's car.
Uninsured motorist coverage pays for injuries or property damage to you, or your family and passengers, caused by an uninsured driver, an underinsured driver, or a hit-and-run driver.
Where can I get the cheapest rate?
The quickest and easiest way to get minimum auto insurance coverage at the cheapest rate is to go to an auto insurance comparison
website. In just a couple of minutes you can get the cheapest quotes from top-rated companies. It's fast, it's easy, and it's free.
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How Much auto insurance coverage Do you Really Need
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Auto insurance can be confusing. Most policies look like they were written in a foreign language. Here are simple explanations for the five basic types of auto insurance coverage
so you can decide for yourself what you need and what you don't.
Collision Coverage :
This pays for repairs made to your car no matter who was at fault. If you purchase or lease a car your dealer will require you to carry this coverage.
I recommend getting the highest deductible you can afford. Increasing your deductible from $100 to $500 will save you 10% to 20% on your insurance.
Comprehensive Coverage :
This coverage pays for damages to your car from fire, theft, and vandalism. It also pays for damage from natural disasters like hailstorms and hurricanes.
You should carry comprehensive coverage, but again, get the highest deductible you can afford.
Liability Coverage :
This coverage pays for your legal fees and any claims made against you if your car kills or injures someone, or damages someone else's property.
If you don't have a lot of assets you can go with the minimum your state requires. However, if you do have a lot of assets you should get the highest amount you feel will protect you from lawsuits.
Uninsured Motorist Coverage :
This coverage pays for damages done to you, your passengers, and your car that are caused by uninsured or underinsured drivers and hit-and-run drivers.
With more than 15% of the population driving without insurance, and hit-and-run accidents on the rise, this is good coverage to have, especially if you live in states that have a high number of uninsured drivers like Mississippi (26%), Alabama (25%), California (25%), New Mexico (24%), and Arizona (22%).
Medical Coverage :
his coverage, also known as personal injury protection, pays your medical expenses and your passenger's medical expenses if you're involved in an automobile accident.
Consider eliminating this coverage if you already have medical insurance that covers you.
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Why Purchase Auto Insurance Coverage
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Auto insurance cannot prevent automobile accidents from happening, but it can help offset some of the financial loss or burden that might result from an accident. Various coverages are designed to protect an insured's investment
in the value of owned automobiles, to pay medical expenses when injury occurs, and to cover an insured's legal liability to others who may suffer injury or damages. This does not mean that all possible expenses or losses will be covered.
Limits of insurance apply to insurance coverages, and each insurance policy has exclusions and limitations. Auto insurance is designed to reduce many of the financial losses that could otherwise result from owning or operating an automobile. Without insurance, a person would have to bear the entire cost when accidental injuries or damages occur.
Having auto insurance can also help protect you in case of a non-fault accident. There is coverage designed to protect against uninsured drivers in case of an accident. This coverage is called Uninsured Motorist coverage. This coverage can protect yourself and your passengers as well as your vehicle in case you were to be struck by an uninsured motorist. Like other coverages, there is limitations to this coverage.
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