Auto Insurance 101By Chris Tolamalu
Auto insurance, as the term suggests, is insurance that you can purchase for your vehicle (cars, trucks, SUVs, motorcycles, etc.). It provides protection against losses incurred as a result of vehicle accidents. While the product seems simple, there are many different types of auto insurance policies available for purchase. Depending on the policy that you choose, your coverage levels and types will vary. Broadly speaking, these are the types of auto insurance programs on the market today:
• ‘Comprehensive coverage’ (Comp) – This kind of insurance insures your vehicle against the cost of purchasing a new vehicle if it is stolen or destroyed in a fire.
• ‘Collision coverage’ (Coll) – This kind of insurance insures your vehicle against the cost of repairing the vehicle following an accident or the cost of purchasing a new vehicle if it is damaged in an accident beyond economic repair.
• Personal Injury Protection (PIP) - This insures against the cost of medical expenses and lost wages related to the use, ownership or maintenance of a motor vehicle. This insurance is mandatory in some U.S. states.
• Medical Payments (MP) - insures against the cost of medical expenses for bodily injury sustained in an accident beyond any expenses that may be covered by PIP.
• Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party.
While ‘Liability insurance’ covers only legal liability, ‘comprehensive insurance’ covers PIP, MP, as well as legal liability. In the United States, liability insurance covers claims against the policyholder and any other operator of the insured’s vehicle. If, however, any other operators live at the same address, they must specifically be covered on the policy. For rented vehicles, most rental car companies offer insurance to cover damage to the rental vehicle.
While comprehensive insurance covers most aspects of damage which can affect the car itself or the driver, there is one risk associated with buying a new car is not covered even by comprehensive insurance – once the car is bought, there is a sharp decline in its value. During this period (immediately after a car is bought), in which the remaining car payments exceed the value of the vehicle and thus the compensation the insurer will pay for a ‘totaled’ (destroyed, or written-off) vehicle, customers may consider purchasing ‘GAP insurance’. GAP insurance was established in the early 1980's to provide protection to consumers based on buying and market trends.
Americans Spend More Time Researching a New Car Than Health Insurance Options
NEW YORK ( MainStreet ) ? While some consumers wait anxiously for the annual health care open enrollment period, other Americans are in a rush to choose benefits despite its lasting consequences.
Chicago among least expensive cities for car insurance, study says
Chicago is among the least expensive cities for car insurance according to a new study released Thursday.
Renting a Car With Your Credit Card: The Devil Is in the Details
NEW YORK (MainStreet) -- Credit-card companies like to tout how you'll get free insurance if you rent a car using their card, but a detailed analysis finds that the coverage they provide sometimes excludes big SUVs, overseas rentals and more. "Most people probably have at least one card in their wallet that provides car-insurance coverage, but what's important to understand is that the devil is ...
Update: It's Still Ridiculously Expensive To Drive In Detroit
Nothing new here, just more evidence that's car insurance is sky high in the Motor City. According to some figures, Detroiters pay 165% more than the national average. Read more...
Not Caring About Personal Privacy Might Lead to Auto Insurance Discounts, Says 4AutoInsuranceQuote
The Website Just Posted a New Article that Explains How People who are Not Concerned with this Issue Might Get Better Auto Insurance Rates New York, NY / ACCESSWIRE / September 12, 2014 / 4AutoInsuranceQuote.com, ...
Detroit Has Most Expensive Car Insurance, Charlotte Has Cheapest
SAN FRANCISCO, Sept. 11, 2014 /PRNewswire/ -- Detroit has the most expensive car insurance and Charlotte has the cheapest, according to a new insuranceQuotes.com examination of average premiums in the ...
Why Motor City is an Expensive Place to Drive
Detroit may have one of the lowest costs of living in the country, but its residents are paying 165 percent more for car insurance than the national average, according to a new analysis by InsuranceQuotes.com. The average cost of car insurance nationwide was $797 in 2011 (the most recent data available), according to the National Association of Insurance Commissioners. Motor City residents pay ...
3 cities where car insurance tops $1,000 a year
The most ? and least ? expensive cities for car insurance.
Five ways to keep your beater car on the road forever
I am driving around town in a 15-year-old beater these days. The ride is...pleasant. The premium sound system still offers that healthy escape from the rigors of the road, and the leather seats are in better shape than the den sofa I bought brand new five years ago. I could take this car across the country tomorrow without a care or a concern. It does everything I ask of it. This blue Buick ...
New Lexus, a tempting premium hybrid hatchback
NEW car launches usually result in the prices of the latest model being higher than the outgoing car but luxury Japanese car maker Lexus has just done the opposite by actually reducing the prices of their new CT200h range of hybrid cars which makes a welcome change for potential buyers writes Bryan Longworth.