Any repair or replacement of parts in an automobile involves
a lot of money. Occurrences such as theft and automobile accident damage
are also not uncommon. Without adequate automobile insurance coverage,
it would be exorbitant to replace vehicles on theft or damage. Your legal
liability is also covered with the right kind of automobile insurance
in case you injure another person or cause damage with your vehicle. Let
us understand the various facets of automobile insurance coverage.
An essential part of owning an automobile is to secure it with adequate
insurance coverage. Basic automobile insurance liability is the mandatory
requirement of auto insurance, which differs from state to state. A typical
basic insurance requirement is 50/100/25. This means $50,000 for coverage
for any single person injured in an automobile accident with a maximum
of about $100,000 for all injured.
Liability coverage: This aspect of automobile insurance covers
you against the cost of injury and damage caused by you in an automobile
accident. The bodily injury coverage is limited by the cost of injury
coverage per person covered as well as the total amount that can be disbursed
as injury coverage for all injured persons. The property damage coverage
protects you against the cost of damage caused by you in an automobile
Personal Injury Protection (PIP): This coverage covers medical
bills, lost wages and loss of services and is mandatory in most states.
Uninsured motorist: This type of automobile insurance coverage
protects you against injury or damage caused by a driver who is not insured.
Underinsured motorist: This type of automobile insurance policy
pays for damages and injury caused due to a driver carrying inadequate
Collision coverage: This policy pays for repairs and fair market
replacement costs when your vehicle is damaged in an automobile accident.
Comprehensive coverage: The comprehensive insurance policy gives
protection against repair costs or replacement due to theft, vandalism,
hit-and-run accidents and natural disasters such as floods and fire.
Emergency roadside assistance coverage: This optional coverage
takes care of towing and immediate roadside repairs. It does not cover
the cost of repairs at the garage.
No fault insurance coverage: This protects the policyholder from injury
costs irrespective of whose fault it was.
An automobile insurance policy must state all the relevant details
about your vehicle insurance policy. Important declarations include the
make and year of the car, its VIN (Vehicle Identification number), date
when the policy gets affective and the policy coverage limits and finally
the policy premium. The auto insurance policy must clearly outline what
it promises to provide. You must also clarify your duties and responsibilities
in the event of an automobile accident and stake the claims.
A deductible is the amount of money that you need to pay before the insurance
claims can be considered. A higher deductible involves lesser premiums
and vice versa.
Affordable car insurance
You can avail automobile insurance discounts on the following grounds:
- If you take a Department of Motor Vehicles approved accident
prevention course, you are eligible for a reduced premium.
- If your automobile is fitted with automatic seat belts or air
bags, your automobile insurance policy can be discounted for No-fault
and medical payment coverage.
- A factory-installed braking system (ABS) entitles you to a discount
on automobile insurance for liability, collision, No fault and medical
- Installation of anti-theft devices further reduces the comprehensive
portion on the auto insurance premium. Electronic tracking devices on
windshields and door glasses also qualify for insurance discounts. Daytime
running lamps (DRL) are also eligible for a discounted premium.
- Multi-policy discounts allow you to reduce your automobile insurance
premiums. There are also special discounts for senior citizens.
Plan your automobile insurance costs by raising the deductibles on physical
damage (collision and comprehensive). For older vehicles, you can eliminate
these altogether. You have to decide whether to absorb a large portion
of the loss in the event of an automobile accident by paying lower premiums
or go in for higher premiums for more assurance. A good driving record
will always get you a good rate.
Automobile insurance quote
The automobile insurance market has grown tremendously. With the burgeoning
trade carried on over the Internet, it was just a matter of time before
automobile insurance quotes were available online. Getting a quote for
automobile insurance involves filling up details on your automobile and
insurance requirements, such as the model and make of the vehicle, your
driving record and the insurance coverage you are seeking. Based on these
factors, an appropriate automobile insurance quote is provided to you.
Online automobile insurance quotes help you take insurance decisions quickly.
Automobile insurance companies can offer cheaper rates on account of this
When you collect an automobile insurance quote, you need to be aware of
the types and limits of the different coverage policies. Ensure that the
insurance provider is licensed to sell insurance in your state. You must
also remember that you are transmitting sensitive personal and financial
details over the Internet. So ensure that the insurance provider uses
a secure site. The convenience of comparing prices and buying automobile
insurance over the Internet has fuelled the trend of collecting an auto
insurance quote online.
Automobile insurance company
An automobile insurance company must be thoroughly checked before
you take up an auto insurance policy with it. The ratings of an automobile
insurance company as per A.M. Best can help you make a decision. The ratings
of an auto insurance company hinge on many factors - it's financial strength,
quality of services and direct marketing operations as well as the price
of its products and services.
An insurance company guide will allow you
compare various companies offering automobile insurance. The Insurance
web site is a good place to look for complaints against any automobile
insurance company so as to beware of fraudulent operators. Consumer Alerts
at the National Association of Insurance Commissioner are also
a good weeding spot for companies with dubious track records. Selecting
an automobile insurance company involves price comparisons, policy evaluations
and customer service assessments.