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:
Coverage:
• ‘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.
Protection:
• 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.
|
10 ways to save money on your car insurance
Sometimes, consumers don't realize all the discounts they are eligible to receive on their auto insurance. Would you expect a break because your car has daytime running lights? Maybe not, yet four of the top 10 insurers offer a discount for daytime running lights, based on a new survey by Bankrate.com.
USAA Promotes Parker to CEO, Liebert to Operating Chief
United Services Automobile Association, the provider of financial products to military families, promoted Stuart Parker to chief executive officer as it seeks to extend growth in insurance and banking.
Hiring process is an adjustment for veterans ... and companies
In the next few years, hundreds of thousands of veterans will find their mission changed from defending the country to meeting private-sector goals of customer service and turning a profit. While they bring recognizable experiences of self-discipline and teamwork, they may not be able to easily match their skills to the bullet points on the job description.
TrueCar Now Serving Targeted Manufacturer Incentives To Customers Of Insurance Affinity Partners
SANTA MONICA, Calif., Aug. 21, 2014 /PRNewswire/ -- TrueCar, Inc. (TRUE), the negotiation-free car buying and selling platform, today announced that it has launched major enhancements to the auto buying programs for its insurance affinity partners, specifically the integration of exclusive incentives from automakers uniquely tailored to the needs of total-loss customers. Through the TrueCar ...
How to save a down payment for a home
In some markets, a 20 percent down payment can be substantial. Ending the trips to Starbucks isn't going to cut it.
Magid: Tech advances make cars safer
It's certainly risky to text, fiddle with your phone, configure your GPS, mess with your radio or even speak on the phone while driving, but new tech can also make us safer.
US Transcom sends out search teams for troops' missing private vehicles
Hundreds of vehicles belonging to U.S. military members serving overseas are missing. Now Gen. Paul Selva, the U.S. Transportation Command commander, is sending out to teams worldwide to look for them.
TRANSCOM sends out search teams for troops' missing private vehicles
Hundreds of vehicles belonging to U.S. military members serving overseas are missing. Now Gen. Paul Selva, the U.S. Transportation Command commander, is sending out to teams worldwide to look for them.
3 Customer Service Innovations To Help You Never Disappoint A Customer Again
No matter how perfect your product, customer experience, or service is otherwise, in the eyes of the customer it?s broken if you deliver it late. Worse, the concept of what constitutes on-time delivery is the most movable of moving targets. While timeliness has been a commercial expectation since the dawn of the industrial age, today, in our ultra-accelerated world of ??Why do I have to wait a ...
Windows to New Worlds
After 17 years of planning, fundraising, designing and building, the South Carolina State Museum?s new Windows To New Worlds project officially opens on Aug. 16. It includes a planetarium, 4D theater, observatory and an exciting and collaborative approach to education that can reach every school and give every student a chance to reach for the stars.
|
