Understanding Auto Insurance

Auto insurance is basically a contract between you, your insurance provider and the insurer that pay you out if you are involved in an accident or if the car is stolen. In return for your paying a regular premium, the insurer agrees to cover your damages as outlined in your coverage. While it’s true that there are some people who are simply riskier drivers than others, everyone should carry auto insurance to protect them in case of mishaps. If you don’t have auto insurance, you could be responsible for any medical bills, rental cars or worse yet, even lost wages. If you don’t have auto insurance, read on for how to get affordable auto insurance.

First, do you know what kind of auto insurance coverage you need? Will you be filing a claim or is it a non-emergencies situation? Some car accidents aren’t considered accidents. They’re called events because the damage was caused by someone else’s negligence. If you’re involved in an accident that is classified as an event, your insurance company will only pay you for the actual cost of the damage you were caused and nothing more.

You can learn everything you need to know about auto insurance coverage by contacting your local Department of Motor Vehicles and/or Department of Insurance. Each state requires car owners to have at least bodily injury liability, property damage liability and property protection. This last part of the policy gives you the right to sue your lender to make up for any financial losses you suffer as a result of a car accident. The only way your lender may end up paying anything is if the court rules in your favor.

Every state also requires vehicle owners to carry collision and comprehensive coverage on their cars. Your lender may require you to carry uninsured motorist coverage if your vehicle was damaged in a collision with someone who is not insured. It’s important to read your auto insurance coverage contracts very carefully and make sure you understand all the details of what you’re covered for. Be aware of the limits for each type of coverage and read your policy over again after every renewal to make sure you understand what the new terms mean.

You can save money on auto insurance if you purchase quotes online. By visiting AM Best’s website, you can request multiple quotes from multiple companies easily and quickly. The process is quick and easy, and you can have a quote as soon as five minutes. Requesting a quote online will allow you to compare policy terms, as well as cost and other important information that affects your risk exposure.

You may be required to have uninsured motorist coverage or some type of bodily injury liability, but the amount of coverage you need will depend upon the type of car you drive and how much you pay for insurance. If you only require uninsured motorist coverage, you can usually get that coverage at a discount from your automobile insurance company if you have more than minimal deductibles. Paying too much out-of-pocket for a claim may make it difficult for you to settle if you’re involved in an accident. An experienced personal auto insurance agent can help you decide what types of coverage you need and which deductible level is best for your circumstances. An experienced agent can also help you with any questions about your auto insurance coverages.

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