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Auto Insurance
Basics
Most people only think that insurance is something they need so they
can get their registration and tag so they can drive. It is something that
they need because their license will be suspended if they don't get it.
It's just a bother to some because people think "I haven't been in an
accidents, I am a careful driver."
Often times people will call for insurance and say give me the cheapest
insurance or give me only what is required. Many people don't even know
what this insurance coverage this is. A lot of people only really become
aware of what coverage they have when they need it, like when they need to
make a claim.
When you run into that stopped car or have someone sideswipe your car in a
parking lot while you are shopping, suddenly having only the coverage is
required by law may not be the best thing to have. You should always have
as much insurance as you can afford to carry. Having too little is never
good and if you have insurance you cannot afford is not any better. A
policy that is cancelled due to non-payment does you no good at all.
There are many types of coverage to purchase and meet your insurance
needs. Every coverage has a purpose and all are good to get.
Property Damage liability
covers if your vehicle damages another person's
property. This could be their car, house, motorcycle, etc. Limits for this
are $10,000, $25,000 or $50,000.
Another valuable coverage is
Bodily Injury Liability.
Bodily Injury covers
other people's injury or death that you are responsible for up to the
limits you purchase.
Another common insurance people ask for is
Full Coverage. This is not an
insurance coverage and means a different thing with every company you
call. Most people only know that their car dealer or bank wants Full
Coverage so they ask for it. Comprehensive and Collision is what these
companies are looking for. Collision covers repairs when your vehicle hits
or is hit by another vehicle. If it is destroyed it will also pay up to
the book value of the vehicle at the time of a loss. Comprehensive covers
for loss caused by other circumstances other than a collision. Some
examples are theft, flood, fire or animal damage. This will also cover
total losses up to the book value of the vehicle.
Other types of coverage available are
medical and Uninsured Motorist.
Medical covers medical costs to you and your passengers injured in an
accident. Uninsured Motorist covers injuries to you and your passengers
when the other person in the accident is at fault but does not have
insurance or does not have enough insurance.
These are just some of the basics about the insurance there is more
detailed information about each coverage out there that you can find. But
this information should give you a good idea about what type of coverage
you might need to research more or be ready to purchase. Knowing the
basics is your first step on making smart purchasing decisions!
Disclaimer: This article is for information purposes. It should not be
interpreted as a recommendation to buy or sell any insurance product, or
to provide financial or legal advice. This information is provided for
information purposes only.
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