Car insurance : an Important Decision for the Car-Owners

Car insurance : an Important Decision for the Car-Owners

By : Smith James

Car insurance is one of the most important policies you need to have a look at. It is essential to have this policy in place which helps you avoid stressful periods, and also saves you time when your car needs repairs and the costs could run sky-high. You can go for collision cover as well as breakdown cover to protect your car against various problems it can face during its run on the road. Every car faces the usual wear and tear and this needs to be taken care of.

Getting this insurance policy is somewhat of a trouble for many car owners, owing to high premium rates; or, at least, it is a difficult decision to take. However, it is an important one, as important as your car which you would like to protect. Premium rates are fine but protection of your car to cover the damages and repair costs is more crucial to upkeep its long life.

Much of the premium considerations depend on your driving profile and other factors, such as age and also credit card history. When you get your policy, you also need to be careful of a few things. Be regular in your premium payments. This is because failure in premium payments on the due date can render the policy invalid. Also, most people opt for deductibles when they go for car insurance, in order to bring down the premiums to a reasonable payable amount. Deductibles are a serious consideration among many other things. This is the initial amount deducted from your premium payments. Higher this initial uncovered amount, lower the subsequently applicable premiums.

Before you sign the car insurance policy, you ought to read the document carefully and clarify any doubt in the policy, since this helps avoid any confusion when you have to make an insurance claim.


Source from : www.streetdirectory.co.id

How Car Insurance Works

How Car Insurance Works

by Allison Klein

If you own your own car, you probably already know a little about car insurance. You may have heard the words deductible or premium. But, do you truly understand the different parts of an auto insurance policy and do you know how to choose the best coverage?

Forty-seven states require that you have at least some kind of car insurance, so it's a good idea to know what the law requires you to have and what additional or optional coverage will help to protect you in the event of an accident.

Before purchasing auto insurance, you must consider a variety of factors including what kind of car you have, your driving record and the amount of money you are willing to pay. Understanding the simple basics of auto insurance will make you confident that the car insurance policy you choose will take care of your needs in the event of an accident.

In this article, we will walk you through the types of coverage that insurance companies offer and discuss possible insurance needs. Additionally we will look at what affects the price of auto insurance, how to bring the costs down and how to understand the components of your policy.

Types of Coverage
Everyone who drives needs car insurance. In fact, most states require it by law. When you buy car insurance, you are buying what is called a policy. Your policy is based on a variety of factors including what kind of car you drive as well as what kind of insurance you want. Auto insurance policies are actually a package of different types of insurance coverage.

The first step in understanding an auto insurance policy is to learn the various types of coverage insurance companies offer. Some of this coverage may be required by your state and some of the coverage may be optional.

• Liability - This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must purchase, but you can always get more coverage than your state requires.

• Collision - This coverage pays for damages to your vehicle caused by collision with another vehicle or object.

• Comprehensive - This coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.

• Medical Coverage - Pays medical expenses regardless of fault when the expenses are caused by an auto accident.

• PIP - Personal Injury Protection (PIP) is required in some states. This coverage pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.

• Uninsured Motorist - Pays your car's damages when an auto accident is caused by a driver who doesn't have liability insurance.

• Underinsured Motorist - Pays your car's damages when an auto accident is caused by someone who has insufficient liability insurance.

• Rental Reimbursement - This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car.

Many insurance policies combine a number of these types of coverage. The first step in choosing the insurance you want for your car is to know the laws in your state. This will tell you the minimum insurance you need for your car. It's good to keep in mind that, just because your state may not require extensive insurance, extra coverage may be worth the expense. After all, no one wants to be stuck with thousands of dollars worth of bills because of an auto accident.

Now, let's take a look at how to determine your insurance needs.

Source from : www.aoto.howstuffworks.com