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Tuesday, July 19, 2011

Auto Insurance Basics

Auto Insurance Basics Made Easy
When dealing with Car Insurance , most people have misconceptions about the policies. Often most people think that one form of car insurance entitles them to all forms of coverage if or when involved in a serious accident. As a result most people feel like their insurance company is giving unnecessary hassle after the accident. It is best to become familiar with all forms of insurance so you don't spend extra money in legal fees. So i have taken the time to teach you the basics and a little more , that will help you choose what is best for you and your situation .
Types of Insurance
1. Liability Insurance - The form of car insurance covers the other party involved ,as far as bodily injuries. It also covers property damage which is a big factor in any car accident. Most if not all states require you to have a minimum of liability as soon as you become the owner of a vehicle .
2. Personal Injury protection- You may have personal injury protection, also known as PIP, included as part of your liability or no-fault policy. PIP covers expenses for anyone injured in your car because of an accident you cause. These expenses may include :
lost wages
Medical bills
Rental car costs
Caretaker expenses
3. Uninsured Motorist Insurance- Even though the law requires you to have car insurance, everyone does not play by the rules. Some drivers might not have the money for a down payment and will take the risks of driving UN insured. When you get in an accident with these kinds of people ,(UMI) has you covered and pays for the damages done.
4. Collision Coverage- This form of insurance pays for repairs in the event accident. Great form of insurance for sports car owners. I order to keep a low and reasonable deductible , raise the collision deductible . The deductible is the money you may have to pay out of pocket in order to start the repair process. It will seem like pennies depending on the damage done to the car. For most serious accident the deductible is the least of a drivers worries.
5. Comprehensive- This form of insurance covers you for non-collision damage such as:
Storm Damage
Vandalism- such as keying, paint scratches, etc.
6. Gap Coverage-This form of insurance is very important when leasing a vehicle . This insurance covers the balance between the market value& the amount left on the loan. The reason you would want this form of insurance if your leasing or paying a car note is , that when you get in an accident you insurance provider may max out the coverage on damages.

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