If you want to have a car on the road you have to have car insurance. Some states even have coverage minimums where you have to have a certain dollar amount of coverage, usually this is called basic coverage.
Basic coverage is also known as liability. This just means that if you get into an accident you will have coverage up to a certain amount (the amount you purchase) if the accident is your fault. Almost everyone has to have liability, unless you have enough money and can prove (in some states) that you are rich enough to not have to carry insurance at all.
Comprehensive and Collision coverage are usually the two you will have to pick up if you still have a lean on your vehicle. Basically if you are still making payments you have to have these coverages. Collision is the coverage you use when you want to use when you get in an accident and you want your car covered for cosmetic damage. This can include the general working parts of the your vehicle.
You see liability is the coverage to cover you when the accident is your fault and you mess up their car. Collision is when you have to pay to get your car fixed. Comprehensive coverage on the other hand is when you are not in an accident and something happens to your vehicle. This would be acts of god, such as a hail storm, a flood, a hurricane, etc.
As you can see all three of these insurance coverages are very useful to cover most situations.
Additionally there are some other factors of insurance you should keep in mind. For instance the deductible. You have probably seen commercials about this, because no one ever seems to be too sure about what deductible to pick. The lowest is usually around $200, or no deductible at all. This means if something happens to your vehicle you will cover the first $200 before the insurance plan kicks in and starts paying. Now you can get a deductible all the way up to $1000 if you want. This will bring down the price of your coverage quite a bit because you will have to pay $1000 if something happens.
On the other hand if you don’t think you will have $1000 on hand if you are ever in an accident you might want to consider a plan with only $200 for a deductible you are going to pay much more for your coverage, because you are responsible for so little in the case where you need to make a claim.
There are some benefits of choosing one auto insurance company over another. For instance if you go with Progressive you can get emergency road service for as little as $14 a year or $7 per 6 month term. When collecting quotes be sure to ask about any other benefits you would get as a client, then factor these into the quotes as well.
For more information visit Mike Anderson’s web site on auto and home insurance.
Mike Anderson
Article originally published here:
http://www.amazines.com/article_detail.cfm?articleid=675006
Traditionally, auto insurance is more expensive for younger drivers or those with any violations on their records. If you have a serious violation (such as a drunk driving conviction, etc…) you will need what’s referred to as ‘high risk’ auto insurance but your insurance company will tell you if you fall into any high risk categories.
Comment by Auto Insurance Terms — November 17, 2008 @ 12:48 pm
There is a new supplemental insurance plan that totally eliminates the deductible should a person have an accident.
This insurance will pay a person’s deductible up to $1,000. Therefore, it makes sense for a person to increase their deductible to $1,000 and save money (15% to 30%) on their auto insurance. In most cases, the savings will more than pay the deductible insurance premium.
People are not required to switch auto insurance carriers and all drivers 21 and older are eligible regardless of their driving record.
Google Insure My Deductible.
Comment by Ken McGhie — December 10, 2008 @ 6:53 pm