Although premiums, policies and prices vary widely, the mandate does not. Automobile insurance is an unavoidable expense of driving. Ideally, you will never have use for your auto insurance. In the event that you do; however, you will considerably improve your satisfaction with the claims process by doing thorough research before policy inception.
Begin with an understanding of auto insurance terms:
• Bodily injury (also called liability)
This coverage offsets costs related to the bodily harm and property damage of the other driver(s) when you are at fault in an accident. Insurance companies impose limits on the amounts that they will pay to the victim(s), and for each accident. Your premium amount is determined, in part, by the limits you select. Higher potential payouts by your insurance carrier translate to higher insurance premiums for you, the consumer.
• Collision
In the event that you have an accident, your medical expenses and property damage will be covered if you select collision protection as a part of your plan (again, there are limits).
• Comprehensive
This category covers costs related to damage, theft, vandalism, etc. For example: if someone breaks your car window, you would access your collision coverage to repair the damages. Again, higher payouts mean higher premiums. If cost is a concern, increase your deductible to decrease your premium. The deductible is the amount, usually between $250.00 and $1,000.00; you pay toward accident/theft related expenses before the insurance company contributes.
• Uninsured/Underinsured Motorist
Although automobile insurance is legally required, some drivers do not comply. If you have an accident with such a driver this coverage will provide some compensation for medical expenses.
Auto insurance can be quite costly, but it is far more expensive to forgo. Many states arrest and/or fine drivers found to be uninsured. Additionally, accidents, theft and damage can create financial chaos for uninsured/underinsured motorists.
When choosing an insurance carrier, make sure that you have chosen a reputable firm that is accessible, responsive and financially solvent. The coverage is of no use to you if you can reach no one to file a claim, or if there is no money to pay it. Check with agencies such as Standard & Poor’s and the National Association of Insurance Commissioners to get the information you might not get from a slick brochure or salesperson hoping to close a deal.
By: Nicole Soltau
Posts Tagged ‘Accidents’
An Intro To Auto Insurance
December 30th, 2009How Does Short-Term Car Insurance Work?
December 25th, 2009
If you’re shopping around for car insurance there are dozens of companies willing to offer you policies for 12 months or more. However, what if you only need a policy for a month, a week, or even just a few days?
There are many circumstances in which short-term car insurance may be a better solution than a long term policy. For example, what if you are hiring a car or borrowing a friend’s vehicle? How about if you are allowing a temporary driver such as an overseas visitor to use your motor vehicle? What if you are lending a car to a friend or relative or you have just bought a new car and need to be insured as soon as you drive it away from the dealership?
Thankfully several car insurance providers now offer short-term car insurance. The theory behind it is simple. If you need to add a friend or relative to your policy for a temporary period, there is no risk to your own no-claims bonus. Or you could set up a policy even if you just need to drive someone else’s car for as little as one day.
With a short-term policy there is less risk for the regular policyholder, instant cover is available and the procedure is generally a lot quicker than adding a named driver to a policy.
So what should you look out for when buying a short-term car insurance policy?
Well, most policies are available for 1-28 days, but you should check the length of the term available. Also make sure you can take out another policy at the end of the period should it be necessary.
If you want cheap short-term car insurance than it’s vital to have a good driving record – avoid accidents and convictions, and if you are hiring a car pick something conventional with a small engine.
By: Alex Gregory
How Does Short Term Car Insurance Benefit You?
November 27th, 2009
If you are planning to drive your friend’s vehicle and don’t have a protective policy with you in case some thing inevitable was to strike, you can get a short term car insurance. You don’t have to get a long term expensive policy for being an occasional driver. Just, opt for a temporary vehicle policy and save a great deal of money in terms of annual premiums. Students who come back home and plan to go for a vacation, can drive down their parent’s vehicle. For this, they need a temporary cover to ensure that you get some kind of a compensation if there is a damage or collision.
You may have bought a new car and would like to drive away at the same time, without even having a proper protective cover. Have you ever wondered if there is any such cover? Yes, there is a cover which can help you drive away your new car. Temporary policies help you precisely with this, have your safe drive! You can also think of adding your wife on the same policy if she is planning to drive your vehicle occasionally.
There is no more of long waiting period. You can get them fast and drive right away!
If your vehicle has hit the other person’s property then your policy will pay a compensation for it. This will also comprise of theft damages and fire to a certain limit. In case of a collision, it is covered under a collision policy. And a comprehensive policy covers all the other things other than a collision. Theft, fire, explosion, accidents, glass breakage etc are covered under comprehensive policy. Talk to your agent and arrive at the most suitable one for you.
By: Arush Keerthi