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“Auto Savings Advice & Tips On How To Reduce All Your Vehicle Expenses”

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AUTOMOBILE INSURANCE

AUTOMOBILE INSURANCE MONEY SAVING TIPS

 

 

Types of Auto Insurance Coverage

 

Deciding on Auto Coverage & Deductible Amounts

 

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Getting the Best Price for Auto Insurance

 

 

Types of Auto Insurance Coverage

 

The cost of insurance coverage for your vehicle can easily get out of control. To help minimize expense, but still ensure you have proper vehicle insurance coverage with respect to your needs and state insurance requirements, a close review of the types and amounts of coverage available should be done in concert with your insurance agent.

 

1.     Protection for your vehicle covers damage to your vehicle.  This coverage is generally not required by regulation and is purely optional.

 

a.  Collision coverage pays for damages to your vehicle caused by a collision or rollover regardless of who caused the accident.  It is important to remember that the cost to repair your vehicle will be covered, less any deductible, only up to the fair market value of the vehicle.  So, if the cost to repair your vehicle is 80% or more of the fair market value of the vehicle, the insurance company will usually claim the vehicle for salvage, and pay you the fair market value of the vehicle, less your deductible, resulting in you having a check and no vehicle.

 

b.  Comprehensive coverage pays for damage to your vehicle resulting from any accident other than collision (or rollover), such as theft, fire, vandalism, flooding and hail.  This coverage is also not generally required by regulation.  While you may have a different deductible for comprehensive coverage than you do for collision coverage, the cost to repair your vehicle (or replace your vehicle) will be handled as described above under collision coverage.

 

c.  The collision and comprehensive coverage noted above will usually cover you for the same type of damage to rental cars that you rent.  Check with your insurance agent to see if this is the case.  If so, except for any deductible you are responsible for, you do not need to purchase the collision damage waiver (CDW) from the car rental company to be protected.  Also, if you charge your rental with a credit card, the credit card company may also provide full coverage on rental cars, including the payment of any deductible.

 

2.     Liability protection protects you financially if you are found responsible for an accident.  Most states require a minimum amount of liability coverage, with additional coverage amounts generally available at various higher levels.  There is generally no deductible and the policy will pay up to the limits of its coverage.

 

a.  Bodily injury liability coverage provides protection if you are found legally responsible for the injury or death of another person resulting from a vehicle accident.

 

b.  Property damage liability coverage protects you if you are found legally responsible for the damage to someone else's property resulting from a vehicle accident.

 

3.     Bodily injury protection protects you and your passengers for costs related to bodily injury in a vehicle accident.  Many states require minimum coverage for one or more forms of bodily injury protection, with additional coverage amounts generally available at various higher levels.  There is generally no deductible and the policy will pay up to the limits of its coverage.

 

a.  Personal injury protection coverage (PIP) pays for your medical expenses and lost income, regardless of what driver is at fault.

 

b.  Medical payments and extended benefits coverage covers medical expenses for you and your passengers if injured in an accident, and provides income replacement and disability benefits resulting from an accident.

 

c.  Uninsured/underinsured motorist bodily injury coverage covers injuries to you or your passengers resulting from an accident caused by an uninsured, underinsured or hit-and-run motorist.