Auto insurance helps cover expenses caused by an automobile accident.  You sign a contract with the insurance company that describes what type of expenses are covered and how much money they will pay.  The cost for auto insurance is a premium which you pay to the insurance company.  So you pay the insurance company money to help relieve you of the expenses of an accident should you have one.

Auto insurance provides multiple types of coverage.  Property coverage covers the damage or theft of your automobile.  Liability covers your legal costs for damage to other people or their property.  Medical coverage pays for the cost of injuries and rehabilitation.  These are just a few types of coverage that an auto insurance policy can cover.  You can learn more by talking to an auto insurance company.

Most states today require that you have some type of auto insurance before you can legally drive.  If you are financing a car, the lender will also require you to have insurance so that they get the rest of the car paid off in case it is in an accident.  Auto insurance policies last anywhere from six months to a year, and you will get notified via mail or e-mail whenever your next premium is due.

Auto insurance policies cover all types of expenses, and the amount you payee for each premium will be determined by what coverages your policy covers. Here are the six basic types of coverages an automobile policy may have.

Bodily Injury Liability

This type of insurance coverage pays expenses that you cause to others in an accident. You and any family members listed on the policy are also covered if you are driving someone else’s car with their permission. You want to be sure to have plenty of liability insurance because if you cause a serious accident, you may be sued for quite a bit of money. This is one area of coverage that you do not want to skimp on when it comes to auto insurance.

Personal Injury Protection (PIP)

But get coverage pays for injuries to the driver or passenger of the ensured car.  It can cover any thing from a medical payments to lost wages to funeral costs.

Property Damage Liability

This liability coverage will pay for damage that you cause to someone else’s property.  This could be damage to another person’s car, house, fences, buildings, livestock, etc.  Basically if you damage it in an accident, property damage liability should cover it.

Collision Coverage

Collision coverage pays for damage to your car in an accident.  This damage could be caused by a collision, flipping over, running into poles, potholes, etc.  Generally you will have to pay a deductible for this type of  coverage.  This is one area where you might could save money by not having collision or paying a higher deductible in turn for lower premiums.  Collision coverage pays for damage to your car even if you are at fault and that is why there is a deductible for that type of coverage in your policy.

Comprehensive Coverage

Comprehensive coverage is another way to protect your vehicle.  It covers damage caused by other people or incidents.  If protects your car against other people hitting it, fire, hail, explosion, earthquakes, vandalism, theft – just about anything that could happen to your car.  It is also very useful for cracked windshields.  This type of coverage is also sold with a deductible so that you have to pay a certain amount before the auto insurance kicks in.

Uninsured Motorist Coverage

This coverage pays for damage caused by an uninsured driver or someone that gets away after hitting you.  This can be very useful should the other person not have insurance or enough insurance to cover all the damages they caused.

Today just about every state requires that you have auto insurance before you can legally drive.  Even if your state does not require that you have insurance, they all require that you have sufficient means to pay for any damage you cause through an accident.  It is much safer to pay for good, quality automobile insurance and not try to get by with the minimum coverage.  While it can be a pain in the butt to pay the premiums, you only need to be involved in one accident to make up for all of those premiums and much more.

It is generally recognized that the bare minimum insurance you should have is $100,000 of bodily injury coverage per person and $300,000 per accident.  States may require less in some cases, but again, why take the chance?

When looking to choose the proper auto insurance company for your needs, here are some factors you need to keep in mind.

1.  Ensure that the insurance company is licensed in your state.  Not all auto insurance companies are licensed in every state, and you will be in a big mess if you claim residence in a state that your company does not cover.

2.  Get a great price.  It has never been easier than right now to compare auto insurance quotes.  Just go to any auto insurance company’s website and ask for a free quote.  It won’t take but a few minutes, and if you ask 3-4 companies, you can pretty well guarantee you are going to find a great deal.

3.  You want to buy your auto insurance policy from an insurance company that cares about you.  You certainly don’t want to have to wrestle with your insurance company to get them to pay.  Talk personally to your insurance agent.  Also check the national and local better business bureaus to see if there are any claims against them.

This entry was posted on Friday, December 18th, 2009 at 6:07 pm and is filed under Auto Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.