It’s a fact – auto insurance consumers who do their homework can find ways to save on their coverage. Understanding your auto insurance coverage, customize it to suit your changing needs, can get you the best coverage at the best price. You can save significantly if you compare auto insurance online before you buy.
Reading auto insurance policies can be like trying to decipher advanced calculus. It’s really not that difficult if you understand a few basic terms. Collision, comprehensive, bodily injury liability and property damage liability are the main terms you need to fully understand.
You’ll appreciate collision coverage in the event you need repairs or replacements if your vehicle collides with another vehicle or property. The higher the deductible you elect, the lower your premiums will cost you. If you’re at fault for something, well of course it would still be an accident, as I doubt you had planned to run into that guard rail, but how much would you be able to afford to pay out of your pocket for the repairs? Just like medical insurance, you would have to pay that deductible amount first and then the insurance company would pay for the remaining charges for the repair.
Another term to become intimately familiar with is comprehensive coverage. This is the coverage that pays for damage caused from falling objects, fire, certain natural disasters, theft and vandalism. Deductibles work the same way as with collision – the more out of pocket costs to you, the less your insurance premium.
In addition to knowing how much collision and comprehensive coverage you have, you will want to know about your liability coverage. Let’s say you rear-ended another driver. Or your foot slips off the brake onto the gas pedal and you plow down a mailbox. Your liability coverage will kick in and pay for the damages that you caused with your insured vehicle. Your liability coverage will, or could, include bodily injury and property damage.
You don’t want to go without bodily injury coverage. If you were at fault in an accident and others involved needed to go to the hospital and/or lost wages from missing work, those costs would come out of your pocket if you are not insured with bodily injury coverage. It doesn’t take a genius to know how quickly those amounts can add up. This type of coverage can also help you in the event the other party takes legal action against you. Many states require you to carry bodily injury coverage.
The other part of liability includes property damage coverage. Can you imagine how much it might cost should you accidentally drive into the side of someone’s home? You would not want to be caught without property damage insurance should you need to pay for repairs to another vehicle, building or anything else you might hit. As with bodily injury coverage, property damage coverage also helps protect you in the event of a related lawsuit.
Every policy will have its limits and various degrees of coverage. It is very important that you understand the basics of what you are paying for and why it is necessary. No one plans for an accident, so, be prepared!
It pays to shop around when you’re thinking about making a major purchase of any kind. It’s worth taking some time to compare auto insurance coverage from different companies to make sure that you get the coverage that’s right for you at the right price.
The Internet is a great place to do your shopping, particularly if you’re in the market for an auto insurance. When you shop online for auto insurance you have no one to pressure you into buying, and you have the opportunity to compare different features and benefits which will more than likely to get you a better deal. After all, no one wants to spend more than they need to on auto insurance.