The importance of car insurance is not overstated. Let’s face it: the ownership and operation of a vehicle requires a large amount of responsibility and – auto insurance. Can not drive a car without a valid auto insurance policy, and if they are driving without one, you will be severely fined or even sentenced to prison. Drivers tend to complain about their monthly car insurance in times of political renewal and the only time that talk about car insurance is the nicest time of filing an auto insurance claim if they get into an accident.
Most of us do not question the need to be covered by auto insurance. The statistics and common sense lead us to be cautious and visionary. In the United States within five years more than 25 percent of all car drivers are somehow involved in car accidents. Expenses related to car accidents from the U.S. totaling over $ 720,000,000 a year. Every 13 minutes someone dies in a car accident. Every 26 seconds a car is stolen. We believe in your luck, but considering all this, safe driving and the right car insurance coverage than necessary.
Before you start shopping for car insurance, it is recommended to study their state auto insurance requirements to determine the amount of coverage required by law and then determine their own car insurance coverage needs that go beyond the legal minimum.
Car insurance rates
The main types of Auto Insurance include:
Liability Insurance (Bodily Injury Liability and Property Damage liability insurance):
The only states that do not require liability coverage are New Hampshire, Tennessee and Wisconsin, and if you do not reside in one of these states, this coverage is essential.
Car Liability Insurance protects your bank account if they are responsible for damage to another person or car. It covers all injuries or property damage you might cause during an accident.
In the event of an accident and you have to blame other people’s injuries or death, Bodily Injury Liability (BI) will cover medical expenses, pain and suffering, loss of income from the other party in an accident and a legal defense if a claim against him. We regret that Bodily Injury Liability does not cover you or others in its policy and is strictly limited to the terms and conditions of your policy.
Property Damage Liability (PD) will provide legal defense and cover you if you get in an accident and your car is going to damage property of another person’s car the other hand, a house, a fence, or any other property. It is important to have sufficient coverage for the amount of damage to your car can make to the property of another party.
Collision: This coverage protects you regardless of who is to blame for an accident. It will pay for repairs to his vehicle and the replacement of its market value if after an accident, your vehicle is irreparable. The main difference between the collision and coverage of liability insurance is that the collision covers damage to your own car while the responsibility for paying for damage caused to the other party. Basically, the safer a driver you are, the less you need this type of insurance.
Integral (comprehensive insurance coverage):
This optional coverage is more expensive. However, finance companies and lessons require the owner of the vehicle insure your car against all risks. This coverage pays for repairs or replacement of your vehicle if stolen or damaged. Comprehensive coverage protects against disasters such as theft, falling trees, and most acts of nature, fire, vandalism, accidents, animals, etc.
Many car insurance companies to ensure the election only 80% of the value, refusing to cover 100%. Is to prevent fraud losses from cars when some car owners feel financial regain its position. Therefore, it is necessary to scrutinize thoroughly what is covered and what is not covered in your policy.
There are several other types of car insurance. For example, payment of health insurance pays the medical bills and funeral expenses to traffic accidents. The injured person (including where it is a pedestrian or cyclist) is covered regardless of who is at fault. Health insurance may or may not include disability insurance and pain and suffering compensation. Personal Injury Protection (PIP) is very similar, but can also cover the cost of care after the accident and up to 80% of lost income.
Insurance uninsured drivers under insured pay the expenses due to damages caused by a driver who is uninsured or under insured. It also covers damage hit and run accident. This type of coverage is a good idea, considering that border the 17% of drivers do not have adequate insurance coverage.
There are also Glass replacement Insurance Coverage Towing and Labor Coverage and Reimbursement of rental car insurance and other benefits of low cost, you can add to your policy as your situation requires.
The choice of car insurance coverage law
Americans pay about a thousand dollars as your Auto insurance premiums annually. However, since individual car insurance coverage needs may be very specific, Auto insurance rates also vary. They depend on the driver’s age, his / her driver record, the type and age of the car, the characteristics of the safety car, the driver’s location and many other factors. Everything counts: their occupation and state of residence, nationhood who park their cars in traffic density in the area in which they live and work, the cost of your vehicle and if you have had a history of accidents and crimes. All these factors make the actual amount of the premium paid. When you decide to do about what coverage to buy, your ultimate goal is to shop around and get the best available coverage at the best price available.
Remember that the declared value of your vehicle when you purchased your policy can not be the exact amount received by the insured event. It is well known that all the cars down in price and, finally, less than its initial value. Therefore, if you were involved in an accident and his car was declared a total loss, you must understand that in all likelihood would be offered unless your car that cost. Many insurance companies now offer a replacement car of similar type, age and mileage when they have lost.
With many insurance companies can get a discount if you have two or more policies with them, and many companies offer benefits, as a free courtesy car if your car is not operational due to an accident. However, logically, the more benefits offered by your insurance company, the higher the price you pay. According to Consumer Reports, when you see that the cost of your premium is running up to 10% of the value of your car, you should consider giving it up.
You can choose the most convenient and time to finance the premium monthly or quarterly payments, or pay every six months. However, the longer the time between payments, plus cost more.
It is important to study and fully understand their policy, as some types of policy can be quite complicated. Make sure you know well their policies and ask questions before buying. Typically, it pays to get as much insurance coverage they can afford everything without pain, as even the smallest of any minor accidents and injuries could result in great expense.