Auto owners insurance has a lot of complicated terms involved. You need to know these various terms and definitions so that you're educated and prepared to shop for auto insurance. It would be easy to just buy whatever the company sells you, but then you have no idea what you're paying for. Wouldn't you rather take a little time to learn about insurance and know what you're getting for your money?
Auto owners insurance is required in all 50 states, but some laws allow for payment of fees in lieu of insurance. Although this is a nice opportunity, you should never drive without auto insurance. The financial security that it provides is really priceless. If you have ever been involved in an accident, you know how expensive it can be. Imagine paying those expenses out of pocket, or worse paying legal fees or facing jail time for not having insurance or being able to pay the expenses.
The most common type of auto owners insurance coverage is bodily injury liability. This coverage pays for injuries and deaths related to an accident that you cause. The limits are split; there is a limit for each person and for each accident. On your policy, it will look like: 100/300. Those numbers mean that you would have $100,000 per person for injury coverage and $300,000 per accident. Property damage liability coverage is also included in most state laws. This is available in amounts from $5,000 all the way up to $1 million in coverage. This coverage will pay for any property or other vehicles that you damage in an accident.
Other coverage types include uninsured and underinsured motorist coverage, which generally has the same limits as your injury liability coverage, but pays for damages when you're in an accident with someone who has little or no insurance. There is also medical payments coverage and personal injury protection, which is required in "no-fault" states, and will pay for your injuries and medical bills. One more form of available coverage is Comprehensive and Collision coverage. These two types of insurance coverage are usually only included on full coverage policies, unless requested otherwise. Comprehensive pays for damages to your car that AREN'T accident related. This includes theft, fire, water damage, and natural disaster. Collision coverage pays for repairs related to an accident for your vehicle, including one-car accidents, or if you happen to hit a pole in a parking lot.
For shockingly easy tips and exclusive information on auto insurance, including how to save money with western auto insurance, visit http://www.AutoInsuranceTips.net |
No comments:
Post a Comment