Understanding Your Auto Insurance
Quote
by John Brennan
Going through your car insurance
policy to work out which aspects are crucial and which you can let fall by the
wayside is not something that most people enjoy doing. It can feel like wading
through molasses while wearing a blindfold. Who would want to put that as top of
their to-do list on a Saturday afternoon? But if you treat it more like a puzzle
that you can solve with just a few helpful hints then maybe you'll be more
motivated to do it. And if you add in the prospect of saving money on your car
insurance premiums, I'm sure you're feeling a whole lot better about the
prospect.
The key is knowledge. Once you have a grip on the different aspects of your auto
insurance quote you can then confidently choose which options you are prepared
to forego in order to get a discount on your car insurance premium. While the
whole car insurance industry is awash with jargon there are a few basic terms
that you need to understand.
Here is a snapshot of the key terms that you need to know about:
Bodily Injury Coverage - the funds that an insurance company would pay for
damages caused to another individual involved in a motor vehicle accident.
Collision Coverage - this covers the cost of repair or replacement of the
insured's car no matter who caused the accident.
Comprehensive Coverage - this is for the cost of repair or replacement of the
insured's car for reasons other than an accident.
Property Injury Liability or Property Damage Coverage - this covers any costs
associated with damage to property as a result of a motor vehicle accident. In
many cases this is mandatory.
With Collision Coverage you can choose the level that you pay in the event you
need repairs or replacements if your vehicle collides with another vehicle or
property. This amount is called the deductible and basically the higher the
deductible you elect, the lower your premiums will be. How does it work? Just
like medical insurance, you pay the deductible amount, sometimes called an
excess, first and then the insurance company pays the remaining repair costs.
Comprehensive Coverage encompasses things like damage caused from falling
objects, fire, certain natural disasters, theft and vandalism. Deductibles work
the same way as with Collision; the more out of pocket costs to you, the lower
your car insurance premium will be.
Liability coverage - either bodily or property damage - kicks in if in the
course of an accident there is damage to either another person or property. For
example, if you drive into the back of another driver or your foot slips off the
brake onto the gas pedal and you plow down a mailbox. Your liability coverage
will kick in and pay for the damages that you caused with your insured vehicle.
Your car insurance needs - the amount you are prepared to spend versus the
coverage you need to sleep well at night - are going to be different from your
next door neighbour. And that's why insurance companies offer so many variables.
Each car insurance company has different variations on what they offer with
their car insurance policies based on their research into what they feel their
customers want and also based on what other companies are offering. They want to
be different to create an edge over their competitors. While it maybe confusing
for you to sort through the different variables available, having so much choice
is a good thing because it means you can usually find a policy tailoured to your
situation and you will be able to save money by not paying for extras you don't
need.
About the Author:
John
Brennan's site on car insurance has insider information and tips to save you
money on your car insurance premiums. You'll find a broad range of car insurance
articles, auto insurance news items and useful insurance resources freely
available to web visitors. New car insurance content constantly added to keep
you up-to-date on the many ways to cut costs on your car insurance. Go to
http://www.autocheapinsuranceinfo.com
Source of article:
www.goarticles.com
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