Auto Insurance 101 Automobile

Info Auto Insurance 101 AutAomobile : hello my name is Lisa Liberty I'll be speaking on the basic the bottom
insurance
for most people buying an automobile is the first major purchase
actually a new car second only to a home
at the most expensive purchase many consumers make with vehicle prices
averaging
over twenty eight thousand dollars it's easy to see why one would want to
protect that investment
before we talk about coverage for the i-mobile itself
I'd like to start with what many people believe is the most important coverage
of all
liability coverage liability coverage pays for the
injuries or damage you or someone driving your car
cost other people or their property the two liability coverages are called
bodily injury liability and property damage liability
every state has different laws dictating the minimum coverage you must carry for
this
some states require you to prove you have insurance before registering a
motor vehicle
and other states use the honor system where you only have to provide proof if
you have an accident or violation

a typical state required minimum coverage is 2550 10
and I'll provide an example shortly to explain what that means
there are four states that do not require drivers to carry
any liability coverage just because it's not required by law
does it mean you don't need it let's say you have an accident
you're distracted momentarily and rear end the BMW in front of you
there are three people in it
all of whom suffer some injury if you're carrying liability coverage of 25-50 10
that means your insurance company will cover the cost if any one person's
injuries

rehabilitation expenses pain and suffering
and time off from work up to twenty-five thousand dollars
but they will not pay more than fifty thousand dollars for the accident
regardless of the number of people injured
this is the bodily injury portion and your insurance company will pay up to
ten thousand dollars for the property damaged
saw three people were injured might say they're
injuries total seventy-five thousand dollars and the BMW has rear end damage
if thirteen thousand dollars
your policy will pay for fifty thousand dollars for all injuries
and 10,000 for the property damage where does the remaining twenty five thousand
for bodily injury

and 3,000 for property damage come from once your policy pays the maximum limit
you could be held personally responsible for the remaining amount
it's generally recommended that you carry more than the state minimum
coverage
to protect yourself from this financial risk the next coverage under an
automobile policy is medical payments coverage
this provision protect you and your passengers if you're hurt in a car
accident
regardless of who's at fault the coverage also extends to you and your
family members

if you're a passenger in someone else's car or if your pet has trained injured
by on mobile
medical payments coverage pays the medical bills resulting from an accident
up to a per person maximum commonly five thousand dollars
there are no deductibles and no waiting period under this coverage
and prescription drugs related to the injuries are covered
consider that accident with the BMW again
let's say that you in your passenger are both injured and taken by ambulance to
the hospital

medical payments coverage a five thousand dollars
will cover the cost of the ambulance ride the emergency room visit
and subsequent doctors visits up to five thousand dollars per person
if your medical bills total seven thousand dollars
and your passengers total three thousand dollars the policy will pay
eight thousand dollars under this coverage some states have a medical
payments coverage known as personal injury protection
or PIP this coverage may have a deductible
and it may allow you to click for lost wages a rehabilitation expenses
two things that regular medical payment coverage does not cover
I third coverage provided by and i mobile insurance policies
uninsured and underinsured motorist coverage

this coverage is quoted similarly to bodily injury liability
even tho mandatory insurance laws exist in 48 States
nearly fifteen percent all accidents are caused by
uninsured drivers uninsured motorist coverage provides protection for you and
your passengers
when you're injured in an accident with an uninsured motorist
it will cover your medical bills rehabilitation expenses
lost wages pain and suffering things you could have claimed against the
at fall party's insurance if they had it
underinsured motorist coverage will cover those same losses
if the aP File parties coverage is insufficient for your loss
keep in mind in most states the uninsured

underinsured motorist coverage applies to injury only
and not for damage to your vehicle protection for your automobiles provided
under the collision and comprehensive portions have a policy
collision coverage applies when you have an accident involving another vehicle
or an object such as a telephone pole
a guardrail a building or when you overturn your vehicle
comprehensive coverage applies in losses involving fire
theft vandalism broken glass
hitting an animal fighter hail damage or
other losses not caused by collision
these coverages have a deductible the amount you must pay before the insurance
company pays for damages

calming collision deductibles are five hundred dollars or thousand dollars
and common comprehensive deductibles are 100 or 250
if your automobile is financed then you're required by the bank or finance
ur
to carry comprehensive and collision coverage is until that loan is paid off
it's important to note an insurance company will never pay more to fix your
vehicle
than the vehicle is worth
to other coverages available through many insurance companies
are towing an emergency road service and rental car reimbursement
while these coverages are optional I always recommend them as part of my full
coverage package

i mobile insurance rates are based on many factors including where you live
your age what you drive how much you drive
and the coverage you carry one way to keep your insurance costs down
is to take high comprehensive and collision deductible
as a vehicle gets older and is not financed many people choose to drop
these two coverage is completely
as a way to save money additionally
many people choose to pay for small claims out of their own pockets
as a way to keep their weight down but remember
the coverage you carey is just one of the factors contributing to the cost of
insurance

there are things you can do to make sure you get the best price possible
the first is to keep your driving record clean
your driving record is used as a predictor of future experience
accidents in violation stay on your record for three years
and major violations and suspension stay on for five years
many companies now use a scoring model that combine to driving record with a
variety of other information
including certain elements of your credit history and prior insurance
claims
to determine your cost for insurance this means that paying bills on time
could affect your insurance rate as could the number of claims you file on
your policy
automobile insurance can be confusing but a little knowledge can go a long way
in providing you the protection you need Auto Insurance 101