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Car insurance
is an agreement between you and your
insurance company where you arrange to pay a premium in
an exchange for the peace of mind that your insurance
agency will pay for vehicle related financial losses
during the duration of the policy. You need car insurance
because you are liable by law to pay for
losses you cause to others in the event of an automobile
accident. Purchasing car insurance is the surest way to
guarantee you will be able to fulfill your end of the
bargain. In some states it is required that you have
minimum forms of insurance in order to drive. You also
must have insurance in order to finance a car.
One of the first questions you will be asked when
obtaining automobile insurance is how much of the
covered loss or deductible do you want to be your
responsibility? You may choose between $100, $250, $500,
or $1,000. The higher your deductible the lower your
premium however you must keep in mind that the
deductible is the amount you must pay before your
insurance will assist you. If you cannot afford to pay
the first $1,000 of the covered loss you may want to
consider how much you can afford and choose a lower
deductible.
Your insurance coverage is broken down into each
purpose you would need to be covered for. One of the
most common coverages include liability which pays out
when the insured driver is legally responsible for
bodily injuries and property damage they cause to
others. Bodily injury damages cover medical expenses,
pain and suffering, lost wages and other special
damages. Property damage includes damaged property and
loss of use. Liability also pays legal defense expenses.
Each state has a set minimum amount of coverage you must
carry but you may opt for higher amounts.
Personal injury protection pays medical expenses for
covered individuals despite who is at fault for the
accident. It also covers rehab, lost wages, replacement
of services and funeral expenses. Medical payment
coverage pays medical and funeral expenses regardless of
fault when the causes of these requirements are due to
an automobile accident. Collision coverage pays for
damage to an insured vehicle caused by collision with
another vehicle or object. Your deductible will apply to
collision coverage.
Comprehensive coverage pays for loss of or damage to
an insured vehicle unless is damaged or lost as the
result of a collision. Comprehensive would cover losses
due to theft, fire, wind, hail, flood, vandalism or
impact with an animal. Your deductible will apply to
comprehensive coverage.
Uninsured motorist pays for loss or damage caused by
another driver who does not have liability insurance.
Underinsured motorist coverage pays when the insured
driver is injured in an automobile accident caused by a
driver who has an inadequate amount of liability
insurance. Rental reimbursement pays rental vehicle
costs when your vehicle is put out of commission as the
result of an automobile accident. Daily monetary limits
may apply. Emergency roadside assistance coverage pays
towing expenses when your vehicle breaks down. Distance
limits may apply.
Your policy will generally cover you, your spouse
children and other family members who reside in your
residence as well as anyone else who has permission to
drive your covered automobile.
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Links
to some more related articles:
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Timothy
Gorman provides more insurance information and free
money saving insurance quotes that you can research in
you pajamas on his website: Best Free
Insurance Quotes.
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