Auto Insurance Term » Collision Coverage

An Intro To Auto Insurance

admin — Wed, 30 Dec 2009 12:38:42 +0000

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

Understanding The Terms When You Compare Car Insurance Prices

admin — Mon, 14 Dec 2009 13:19:03 +0000

If you don’t understand the terms that are used by car insurance companies when you make an auto insurance comparison, you may wind up spending more than you need to or even worse, not getting the coverage that you really need. It’s easy to get confused when shopping for cheap car insurance rates because the language used by auto insurers is very unique and it’s easy to forget what each term means. So here is a general explanation of car insurance terms that you can use the next time you compare car insurance prices.

* Comprehensive Coverage – This covers you for any damage to your vehicle that occurs as a result of anything other than an accident with another vehicle. For instance, it could include fire, flood, theft, and so on.

* Bodily Injury And Liability – This coverage is very important as it provides for injury damage to others in the case of claims that are files against you if you are involved in a car wreck. It also provides for legal fees in defense as well. There are usually two figures that are used in this type of coverage, one for the maximum that will be paid per person per accident, and the other for the total amount for all persons injured in the same accident.

* Collision Coverage – This is what is paid to either repair or replace your vehicle if it is involved in an accident with another vehicle or a fixed object.

* Personal Injury Protection (NO Fault) – In states that support this type of coverage, it pays for most expenses incurred, medical and otherwise, for those that are in your vehicle and also any pedestrians that may be hurt by an accident that you are involved in whether or not it was your fault.

* Liability Coverage – This pays for any damage done by your vehicle to someone else’s property including their car, house, lawn, etc. It’s most often invoked when someone files a claim against you to repair their vehicle if the accident was your fault.

* Uninsured Motorist – This is coverage that pays for your injuries and property damage even if the other person involved in the accident did not have sufficient insurance coverage. This can be very important as many people are driving around without adequate insurance, or no insurance at all, so there is a need to take steps to protect yourself in that event.

There are other options that can be considered when getting an auto insurance policy including car rental, that pays a certain amount for you to have a rental car to use while your car is being repaired as a result of an accident. Also towing coverage can be put on a car insurance policy to cover having your car towed if it breaks down. Just check to be sure that you don’t already have this kind of coverage through AAA or a similar type of auto association.

If you understand the insurance terms better you can usually make a btter informed decision about the coverage you need when you compare car insurance prices.

By: Jim Johnson

Get a Car Insurance With Advantageous Terms With Little Effort

admin — Fri, 11 Dec 2009 04:32:00 +0000

Getting car insurance in California is an easy task, but getting a good policy and a competitive price is not that easy. However, with some research you can easily obtain a suitable policy with the exact coverage that you need and with a minimum premium. So, if you are getting your new car or if it is time to renew your previous car insurance policy, read on and get California Car Insurance with great conditions.

Before starting your search for California car insurance, you need to determine which type of coverage you need. There are mainly two types of issues that you need to address at this stage: collision coverage and liability coverage, being the last one the most important one. It is critical to understand these two concepts thoroughly in order to be able to obtain the best deals on car insurance policies but also a proper risk protection. Moreover, California has specific regulations on liability coverage with regulations that are complex and exceed the purpose of this article but you need not worry as all insurance companies are obliged to comply with these standards.

Collision Coverage

Collision coverage will protect you in case your car is damaged due to an accident. Depending on the type of policy and damage that the car suffers, you can obtain an amount high enough to purchase your vehicle in the market, the costs of replacing damaged parts and fixing the vehicle or the actual replacement of the vehicle for a new one. This type of coverage protects the vehicle but does not cover the damages that you may cause with it.

Liability Coverage

Liability coverage protects you against the damages your car causes to property or the injuries suffered by other people due to an accident that your car takes part in. All the costs associated to these risks are covered by the liability coverage of your California car insurance policy. However, the liability coverage has limitations and thus, when you purchase your policy you will decide what kind of protection you desire. The amount of the liability coverage will have a great influence on the value of your insurance premium.

Getting The Right Policy

Taking into account the above concepts, you need to select the policy that best suits your needs. Once you have selected the type of coverage and the amounts that you need to feel secure, you have to find a balance between the costs and the coverage. In order to do that you need to do some research and the best place to do it is the internet. Within the net you will find many insurance companies willing to offer you quotes so you can compare.

California car insurance policies can provide you proper protection against risk in exchange for reasonable premiums if you know where to look for them. The internet is a good place to start but you can also contact the local department of insurance and non profit consumer organizations that can help you determine which California insurance company offers you the best terms and conditions in exchange for a competitive price.

By: Lara Sawyer

Car Insurance Policies – Five Terms You Must Know

admin — Sat, 21 Nov 2009 14:55:09 +0000

Once you have received your car insurance policies, the first thing you want to do is read over it to make sure all the information is correct. You may find this kind of confusing with all the insurance terms that are used. There will be at least five terms that you will need to be familiar with while reading your policy. Once you are, it will all make sense.

The first is collision coverage. This is the coverage that will pay to repair your car if you are in an accident. In the case of an accident this will be the part of your insurance that will cover your car. It will make repairs to any part that may have been destroyed. It will cover your car even if it needs to be repainted to restore it to the original condition.

The second is comprehensive coverage. This will cover you for anything else that may happen to your car. If you car is stolen, burnt in a fire, or a tree falls on it, this coverage will come in and pay. Make sure you read this part carefully so that you fully understand all it covers. This may differ depending on the company that you choose.

The third is deductible. This will be the amount that you will be obligated to pay before the insurance company will pay. You choose the amount of your deductible at the time you purchase your policy. If you choose a $250 deductible then the amount the insurance company pays will be reduced by that much before they pay you. This will always be the amount that you are responsible for.

The forth is liability. This part covers any damage you may cause to an automobile or property that belongs to someone else. This coverage is required by law in every state. No matter where you live you will be required to have this coverage on any vehicle that you own. If you are in an accident and damage someone’s car or property this will cover the cost.

The fifth is medical payment coverage. In the event that someone is hurt in an accident that you have caused this coverage will take care of the medical expense that you or the other party may have. This will cover the ambulance ride, emergency room bill, or any follow-up treatment that one may need. The other coverage’s make sure the cars are taken care of and this will make sure that the people are taken care of.

These are just five important terms that you need to know when dealing with car insurance policies. If you have any questions about your policy your best bet is to call your agent or insurance company. They can help you to understand any part of your policy. Before you get behind the wheel know what your coverage is because the scene of the accident is not the place to start wondering.

By: Felix Fassbinder

Getting Temporary Or Short-Term Car Insurance Coverage

admin — Tue, 10 Nov 2009 13:45:46 +0000

If you are looking for short term car insurance you should know that you may not even need it. If you are thinking about getting car insurance for a short time period you are probably about to rent a car or borrow a vehicle…

Renting a car:

The rental car service will offer you some form of accident protection, liability insurance, loss damage waiver, and/or personal effects coverage. You do not need any of these offered insurances as long as you have your own car insurance because the insurance coverage you have on your car transfers over to the rental vehicle. It, however, does not transfer over if you are using the auto for some sort of business trip (something that is not recreational). In the following list you will find each of the 4 rental auto insurance possibilities and why you should probably skip each one…

Liability Insurance: All car insurance comes with liability coverage, which will transfer over to any car you drive. Keep in mind that liability coverage does not protect you, your passengers or you car, but those around the car (pedestrians, property, and other cars on the road).

Loss Damage Waiver: This protects the rental car from damage or loss. Some LDW’s only cover damage to the car if you are found to be innocent in an accident. Regardless, getting an LDW is pretty pointless if you have collision coverage (which would pay for repairs to the car regardless of who is at fault) and comprehensive coverage (which pays for damage or done to the car from things such as theft and collisions with wild life).

Personal Accident Coverage: It is very likely that you do not need this type of coverage because you either have health insurance, Medical Payments Coverage, or Personal Injury Protection.

Personal Effects Insurance: Your renters or homeowners policy will pay for the loss of items not only in your residence, but outside of it as well. If you want to insure something expensive, however, be sure to fill out a floater for that specific item.

If you are not absolutely sure if you are covered by your own car insurer, read your policy and, if you don’t understand something, give your auto insurer a call. You should also know that if you pay for the rental car using a credit card, the credit card company may provide short term coverage for that automobile.

Borrowing a car:

A lot of folks wonder if they need short term or temporary auto insurance if they borrow someone else’s car. Generally, no you don’t. The borrowed person’s car insurance coverage will transfer over to you as long as he or she gave you consent to use that car, making getting any type of short term car insurance useless. However, there are some things to keep in mind…

The liability insurance of the person from whom you borrow the car may not be enough to pay for liability damage that you cause while driving their car. If you have your own car insurance, this probably isn’t an issue. If, however, you don’t have your own car insurance and are held responsible for property damage of bodily injury liability fees after an accident, the liability insurance that is transferred over to you may not be enough. Say you cause $25,000 in damage and the lender’s liability coverage only goes up to $20,000. You are responsible for the additional $5,000, unless you have liability coverage yourself, which is at least $25,000.

You can easily correct the aforementioned problem by getting a non-owners auto insurance policy.

By: Nickolay Lamm