Auto Insurance: The Basics
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by: laurawilder
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Is auto insurance a brave new world to you? Are you bewildered by the array of options to choose from? Its actually very simple. You need to learn just a few new terms:
Bodily Injury Liability and Property Damage Liability insurance are the most important kinds of auto insurance to have. If you are responsible for a car crash, Property Damage Liability covers the property damage you caused, and Bodily Injury Liability covers injuries you caused to the other people involved. In this era of skyrocketing medical bills, it is important to have sufficient Bodily Injury Liability. And when cars easily cost $20,000 and other roadside property can run even higher, it is important to have the right amount of Property Damage Liability insurance as well. States often set a minimum amount, but go above it if you can. You may be surprised at how little it costs.
Collision coverage covers damage to your own car when your car is in an accident, whether or not you were at fault. The larger the deductible you choose, the less your collision coverage costs will be.
Comprehensive auto insurance insures your car against damage caused by acts other than collisions. Theft, vandalism, storm damage, damage from hitting deer, and so forth are covered. Sometimes window glass is covered in comprehensive insurance, and sometimes it is not. Read your policy thoroughly, and consider getting extra insurance to cover glass if your comprehensive insurance does not cover it.
These are the most common and basic kinds of auto insurance. There is also a wide range of types that are less common, such as Uninsured Motorist Property Damage insurance. This type of insurance is uncommon in states where all drivers are required to have auto insurance, such as Massachusetts, and more common in states where auto insurance is not mandatory. Before you buy Uninsured Motorist Property Damage insurance, determine whether a noteworthy percent of drivers in your region are uninsured. You may find that buying this kind of insurance is pointless, or it may be one of the best investments you can make.
When in doubt, remember that you can always change your auto insurance coverage after you sign a contract and decide you would be better off with a different level of coverage. It is easier to add coverage than to subtract it, but most companies will also allow you to remove coverage as long as you do not go below the legal minimums. So do not assume you are fixed into a certain level of coverage after you have received your policy; think about how much you really need, and adjust your auto insurance to suit your best interests if new information makes you change your mind. Auto insurance may be expensive, but it is priceless when you realize how important it is to your and the other drivers futures. Similar References Car insurance -- Auto insurance quotes -- Car insurance -- Affordable car insurance --
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