You can save hundreds of dollars on auto insurance!
Auto insurance can
seem like a lot of information to process, but once you understand
the various
types of coverages that make up your policy, it becomes easy.
Your auto insurance
is made up of one package with seven primary coverages which is a
standard auto
policy. Each of these coverages has it's own premiums and your premium
payment
is the total of these separate premiums.
The seven primary
coverages are:
1. Bodily injury
liability:
This coverage
provides protection in the event you injure or kill someone while operating
your
car. It also has provision for a legal defense should another party in the
accident files
a lawsuit against you.
In the event of a
serious accident, you need enough insurance to cover a judgment against
you in a
lawsuit, without jeopardizing your personal assets.
Bodily injury
liability covers injury to people, not your vehicle, hence, it is a good to have
the same level of coverage for all your cars.
2. Medical payments,
no-fault or personal injury protection
coverage
This coverage usually
pays for the medical expenses of the injured driver and passengers
in your car.
There is also coverage if you are injured by a vehicle as a pedestrian.
3. Uninsured motorists
coverage
This coverage pays
for your injuries caused by an uninsured driver or hit-and-run driver
in an
accident which was not your fault. Some states have coverages for uninsured
motorist for damages done to your vehicle.
This is an important
insurance to take out because of the large number of uninsured
motorists, even
in states with no-fault insurance.
4. Comprehensive
physical damage coverage
This insurance
coverage pays for losses resulting from incidents other than collision.
Comprehensive insurance covers damage to your car if it is stolen, damaged by
flood, fire
or animals. Select the highest deductible as you are comfortable
paying to keep your
premiums low.
5. Collision coverage
Collision coverage
pays for damage to your car when your car hits, or is hit by another
vehicle or
object.
6. Property damage
liability
This coverage
protects you if your car damages someone else's property. It provides you
with
legal defense should another party files a lawsuit against you. It's a good idea
to
purchase enough of this insurance to cover the amount of damage your car
might do to
another vehicle or object.
7. Rental car
reimbursement
Rental car
reimbursement pays for renting a car if your car isn't drivable or while your
car
is being repaired because of a covered accident.
