Want To Learn The Nuts And Bolts Regarding Auto Insurance?

By Nara Davis

Many people go about making auto insurance comparisons completely the wrong way. They lack a basic understanding of the different elements that make up the policies they are comparing and as a result they end up missing some of the very important differences that exist in each policy.

So first off let us discuss liability insurance in general

Pretty much every state of America requires liability insurance by law. Nevertheless the actual minimum coverage amount required does depend on which state you happen to be in. It is absolutely essential to properly understand what these limits will mean to you as a driver.

Generally this type of coverage will be broken down to look something like: $25,000/$50,000/$25,000. This breakdown stands for: bodily injury liability maximum per person in one accident/ bodily injury liability maximum per accident counting all people involved/ property damage liability maximum.

What this means is that should you find yourself in an accident that is your fault your insurance firm will only be willing to pay you up to the limits stated.

So if you are in an accident where you are found to be at fault and the overall costs go beyond the limits of your policy you will find yourself having to come up with the remaining funds on your own.

How do I protect myself from uninsured and underinsured drivers?

There's always the risk of finding yourself in an accident with someone who is underinsured or simply does not have insurance at all. This is why there is an option available to have extra protection especially for these situations. You will of course pay more for this and have to pay a premium for it.

The comprehensive and collegian coverage type

Also known as full coverage, comprehensive and collision insurance insures a person's car in the event they are at fault during an accident or other types of damage occur to their vehicle.

An understanding of this type of coverage is essential in order to make an effective auto insurance comparison, as it can impact pricing greatly.

$450/$450; this is what you need to look at for this kind of insurance. You see what this means is that the auto insurance company in question will insist that for any claim you must pay out the first $450 of the repair. Naturally they will then pay the rest until their maximum limits stated.

Rental Reimbursement and Roadside Assistance

Understanding optional coverage such as rental reimbursement and roadside assistance (or towing coverage) can make a large difference when making an auto insurance comparison.

For instance rental car reimbursement covers the policyholder up to a certain predefined amount for vehicle rental should the policyholders vehicle be in repairs etc.

Whereas the roadside assistance coverage option will open up a variety of emergency services to the policyholder, such as the towing away of their vehicle. Naturally this coverage will come with a host of limitations that will be stated in the policy.

A look at medical coverage

Each and every state across America varies on this. In a number of states you must have no fault medical coverage (covers you even in accidents that are your fault) but many others do not require this.

Other states do not have this provision so insured are able to carry a certain amount, depending on their state laws and needs. Understanding medical coverage is essential to make an auto insurance comparison as it can cause rates to vary greatly.

The bottom line is you must not do as so many do and just look for the cheapest price. You may end up paying more in a year sometimes for the insurance but overall it will end up being better in the long run when that unexpected accident comes up. - 31384

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