Understanding Your Auto InsuranceBy Tom McKnight
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 Injury 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'd plan to run into that guard rail, but how much would you be able to afford to pay out of pocket for repairs? $250? $500? $1,000? Just like medical insurance, you'd 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'll want to know about your liability coverage. Let's say you rear-end 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. You liability coverage will, or could, include bodily injury (people) 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 wouldn't 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's important that you understand the basics of what you are paying for and why it is necessary. No one plans for an accident, be prepared!
|
Metro Denver has sixth-least expensive car insurance in the nation
The Denver metropolitan area has the sixth cheapest car insurance in the nation, according to a report released Thursday by insuranceQuotes.
The Most & Least Expensive States for Owning a Car
Insurance premiums and repairs make up a lot of a car owner's expenses, but one thing really drives the annual costs of operating a car: How much you drive.
Uber Zooms Through Legislative Road Block
NEW YORK ( MainStreet ) ? Uber and Lyft celebrated a victory on Tuesday when Illinois Governor Pat Quinn vetoed legislation to establish statewide standards on car sharing services, tightening government oversight on what has so far been a largely unregulated market.
Geico punches the gas in Illinois
Geico, which last year overtook Allstate of Northbrook as the nation's second-largest auto insurer, grew auto insurance premiums by 17 percent in Illinois last year.
Metromile Pitches Pay-as-You-Drive Auto Insurance
Greg Muender, a 27-year-old tech entrepreneur in San Diego, was constantly shopping for the best deal on car insurance. ?I probably switched carriers five times or more? over five years, he says. ?Insurance was a commodity to me.?
Under Georgia Law, Not All Hot Car Deaths Are Treated Equally
Justin Ross Harris, the Georgia father who left his two year old son to die in a hot car, has been indicted for murder by a grand jury. Harris faces eight criminal counts: malice murder, cruelty to children in the first degree, cruelty to children in the second degree, criminal attempt to commit felony exploitation of children, two counts of felony murder, and two counts of dissemination of ...
It Pays to Be Gray: Senior Driver Discounts
Everyone wants to reduce their auto insurance premiums, right? Well, in 34 states and the District of Columbia getting older can be the ticket to cheaper car insurance. All you have to do is pass an approved driving class that...
John Roska: Have these with you when you drive
Q: What are you supposed to have with you when you're driving? Do I have to have my license actually with me when I drive? Can't I just prove later that I have a license? A: Illinois law says drivers must have two things when they drive: a driver's license and proof of insurance. If you have those, or can prove that you did, you're legal. read more
A Perilous Gap in Health Insurance Literacy
Drew Altman: Getting the right health insurance is particularly difficult for those who aren't "health Insurance literate."
Quinn Vetoes State Ride-Sharing Regulations
Taxicab companies and others seeking statewide regulation of the emerging ridesharing industry pushed for a legislative override Monday after Illinois Gov. Pat Quinn vetoed measures that would have imposed background checks and insurance requirements on some drivers.
|
