Car insurance becomes important in case of losses pertaining to a damaged vehicle, or to the people involved in the damage. At this point insurance compensates the owner of the car for losses incurred, by offering financial help. In lieu of this help all you are required to pay is a monthly or yearly fee to the insurance company. Normally car insurance covers the insured party, insured party’s car, people injured by insured vehicle. However this does differ from state to state.
Some parameters like the owner’s driving history, age, and location are considered when calculating the price of the vehicle.
There are a number of options available when it comes to car insurance. Some guidelines that you can keep in mind when deciding on an option are:
Your insurance minimum will most likely be determined by state law, but many people are encouraged to purchase more than is required.
The basic prerequisite is for Liability insurance. Liability insurance is what pays for bodily injury and property damage that you cause another driver. Adding a Personal Injury Protection (PIP) (mandatory in some states) additionally pays for medical expenses and lost wages. However if you already have comprehensive health coverage then you would Not need to make the additional purchase for PIP.
What kind of coverage do you want on the damage incurred?
- Limited Liability.
- Coverage for a rental car.
- Extended warranty to pay for parts and labor in case of a breakdown.
- Are you looking at gap insurance in case of a leased car?
- Comprehensive and collision coverage?
- Bodily Injury Liability.
- Property Damage Liability.
Additionally keep an eye out for auto repair insurance. Most people are very aware of the benefits of having auto insurance, however a few understand that auto repair insurance can protect you from unexpected repair bills.
Auto Repair Insurance is similar to auto insurance. It is an agreement between a vehicle owner and the car insurance company, to pay for all repairs done on the vehicle for a fixed length of time.
The repair coverage is not the same for all companies and also varies from state to state. However a standard auto repair insurance policy typically covers the breakdown and the wear and tear of your car, though in some case only breakdown coverage may be offered. Wear and tear coverage may need to be purchased separately.
Bumper-to-bumper policies are available from some car insurance companies, which cover nearly all the mechanical systems of a vehicle (from bumper to bumper). If there are any exclusion, the policy will list the parts that are not covered. For instance, policies do not cover parts like brake pads and windshield wipers. Likewise, most policies do not cover overheating resulting from a faulty radiator.
To take a decision you need to examine policies and identify the amount you would like to spend keeping in mind the car you own. For example purchasing collision insurance on a not so valuable car may not be a good option as the cost to get the car fixed may be less than the amount you would pay for insurance.
If you enjoyed reading this post, then please remember to post a comment, Subscribe to my RSS feed.
Related posts:
- Is Car Insurance Driving You Bonkers?
- Reduce Car Insurance Expenses with Driver’s Education
- What is the probability of Google or Facebook buying Twitter?
- Will Phone Technology Literally Kill Us?
- The Twitter Follow Experiment!
Entries (RSS)