Auto insurance
You thought you need a vehicle to move around! You got it. You will need to take insurance. This article is aimed at providing every reader with the idea of auto insurance policies, factors that determine the premium of policies and avenues to choose best available offer for each individual. All the states in US require at least liability coverage. Policies vary by company, and from state to state. auto insurance policies are mandatory. There are some options too to meet individual needs. Generally auto insurance policies are aimed at protecting two entities that are exposed to risk in case of vehicle meeting with a sudden fortuitous event. One is lives of people affected by sudden fortuitous event the vehicle met with and the other is vehicle itself.
The mandatory part of auto insurance policies is to protect people and property affected. The protection of others and their property is must in all states. The protection of self and own property is also must in all states, but limits and restrictions vary by state. In addition to mandatory coverage there are some options to cover the vehicle. The vehicle can be covered against natural calamities etc. at the option of policy holder.
Auto insurance policies can be broadly classified into the following
• Protect Others & Their Property
• Protect You & Your Passengers
• Protect Your Vehicle
Protect Others & Their Property
Bodily Injury Coverage is that insures you against the injury you or the driver of your car cause to others in an auto accident. This limits the cost of injury coverage per person injured, and also limits the total dollar amount of injury coverage (for everyone injured). If you are sued because of a covered automobile loss, the cost of your legal defense is also covered. This insurance is required in virtually every state Property damage coverage is the part of liability coverage that insures you against the cost of damage to another's property caused by you or the driver of your car in an automobile accident. Here "Property" includes other cars, houses, fences, telephone poles, etc. If you are sued because of the accident, this coverage also covers the cost of your legal defense. In most states, these coverages are mandatory.
Protect You & Your Passengers
Medical Payments Coverage covers the driver of your car and passengers for medical expenses related to injuries sustained in an auto accident. This coverage is required in some states, but not in others. Limits vary by state.
Personal Injury Protection (PIP) or "no fault" benefits cover you, your family members, and sometimes your passengers for medical expenses related to injuries sustained in an auto accident, regardless of who is at fault It may also provide coverage for your lost wages, essential services, rehabilitation, and other costs associated with an auto-related injury. This coverage is usually mandatory in states that have no-fault laws. Limits and restrictions vary by state.
Uninsured Motorists Coverage covers you for bodily injury you sustain in an auto accident due to the negligence of an uninsured driver, up to the limit of coverage you have chosen. In some states, there may also be Uninsured Motorists Coverage available for property damage to your vehicle. It covers the policy holder, authorized drivers, and any passengers. It usually consists of separate limits for bodily injury and property damage. This coverage is mandatory in most states.
Underinsured Motorists Coverage covers you for bodily injury you sustain in an auto accident due to the negligence of an underinsured driver (someone who has auto insurance, but not enough coverage to pay for all of your damages), up to the limit of coverage you have chosen. In some states there may also be Underinsured Motorists Coverage available for property damage to your vehicle. This coverage is mandatory in most states.
Protect Your Vehicle
Collision Coverage covers you for damages to your vehicle when it collides with another object, such as a car, truck, or tree. Collision Coverage policy helps to pay for repairs or fair market replacement cost if your car is damaged in an accident caused by you or an authorized driver. This policy is always optional.
Comprehensive Coverage covers you for damages to your vehicle due to fire, hail, flood, theft, or impact with a bird or animal or struck in a hit-and-run, or damaged by an "act of God". Covered events vary from policy to policy but usually include fire, flood, and falling objects. This policy is always optional.
Keep the following in minds when deciding how much coverage you should carry.• The value of your vehicle
• The value of your personal assets
• Your ability to pay premiums
Follow the process to get the best deal
1. Tailor Your Coverage to Meet Your Needs
2. Uncover the "hidden" costs
3. Get All the Discounts You're Entitled To
Maintain good statistics on the following to get better bargain
• Driving and Claims History
• Car complied with safety norms
• Age, Gender, Marital Status
• Geography, Occupation, Driving distance to work
• Miles driven each year and Years of driving experience
Following
will help in getting good discounts
• Whether or not you currently have auto insurance
• Credit Rating
• Theft protection devices
• Multiple cars and drivers
Organizations such as American Association of Retired Persons (AARP) or the American Automobile Association (AAA) offer driving safety courses designed for older adults. Check to see if your insurance company offers premium reductions upon completion of one ofthese courses.
There are some websites which give online quotes from a list of auto insurance companies. Login your details to see who offers you the best.
And last but not least. One should be aware of insurance company’s performance before taking a policy from any insurance company. Many websites give ratings of insurance companies on their ability to meet its obligations in future.
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