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Auto Insurance

Since the creation of automobiles there has always been a risk of collision. An automobile is a very powerful tool, and it requires a lot of skill to control safely. However, even the safest driver is at risk of being in an accident of some sort.

Whether its a deer running in front of you, or an icy patch on the roadway, there is always a chance something can happen.

What is Auto Insurance?

Auto insurance is a service designed to protect a driver and its passengers from the financial repercussions of an automobile accident. A motorist pays an insurance company a premium (fee) for this protection, and each premium payment ensures protection for a specific amount of time.

Most insurance companies give their customers the option to get insurance in time increments of six (6) months or annually. If the required premium is too much, they usually give their customers the option to pay in monthly increments.

If the monthly payment plan is chosen, be aware that interest is usually added to the total premium. So it is generally more expensive to pay for coverage on a monthly basis.


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Types of Auto Insurance coverage

Auto insurance coverage is available usually in an a-la-cart format. They can be put together to form an insurance plan that best suites your needs. Here is a breakdown description of the most popular insurance coverage types provided by insurance companies:

Liability (Minimum Coverage)
Liability auto insurance is sometimes called minimum coverage because many states require motorists to carry this type of coverage. This coverage is designed to protect the rights of pedestrians and other motorists on the roadway.

In the event that the insured motorist collides with another motorist or pedestrian, this coverage is designed to pay for any damages, legal fees, and injuries that the other motorist or pedestrian incurs. Liability coverage does not pay for any injuries or damages incurred by the insured motorist.

Collision
Collision auto insurance is designed to pay for damages caused to the vehicle and property of the insured motorist. It is important to note that most insurance companies will only pay the current Kelly Blue Book or the National Automobile Dealers Association's estimated value of your car.

If the cost of repair exceeds the current value, or if the car is irreparable; a settlement check in the amount of the estimated value is given to the insured motorist. This is sometimes referred to as the car being "totaled." You should know the method of estimation used, so you can know what to expect in the event your car is totaled.

Comprehensive
Comprehensive auto insurance is designed to pay for damages to the vehicle and property of the insured motorist caused by something other than a standard automobile accident. Some examples of this are: damages from theft, fire, vandalism, natural disasters, or hitting a deer.

You should find out from your insurance company exactly what situations are insured. Unfortunately some people don't find out that their coverage does not protect a certain incident until it is too late. Be prepared by knowing in advanced what you are paying for!

Theft
Auto theft insurance is designed to pay an insured motorist's in the event their vehicle is stolen. Note that this does not guarantee that you will receive what you paid for the vehicle but instead that you will receive the estimated value.

Rental Reimbursement
Rental Reimbursement coverage provides the insured motorist a budget for a rental car in the event their car is immobilized due to damages incurred from a covered incident. Rental coverage plans usually have limitations, like a set number of days, or total amount allotted for the rental.

Be sure find out from you insurance company what these limitations are.

Medical payments/ Personal Injury Protection
Both medical payments and personal injury protection coverage, are designed to pay for injures incurred by the insured motorist and their passengers. This coverage comes in different levels.

The coverage could be as little as a set spending limit for each claim or could cover loss of wages, childcare, and other long term needs for the insured motorist. If you have good health insurance, the minimum coverage to protect you and your passengers will suffice.

Uninsured/Underinsured motorist coverage
Uninsured/Underinsured motorist coverage is designed to cover damages and injuries incurred by the insured motorist in the event they are hit by another motorist.

If the motorist at fault has no insurance, or if their coverage is not sufficient to cover the damages; this coverage covers the additional costs.

Towing and Labor
Towing and Labor insurance coverage pays for the charge of towing the vehicle if it is immobilized as a result of a covered incident type. Be sure to find out from your insurance provider what incidents qualify.

Gap coverage
Gap coverage insurance coverage is a good coverage to have if you are still paying for your car. This coverage pays the difference between the estimated value of the car and the amount owed to the lender of the insured if the car is totaled.

An example is you owe the bank $6,000.00 and the value of the car is now $4,000.00. This coverage pays the $2,000.00 difference.

Full Coverage
One thing you should understand when shopping for car insurance, is that there is no such thing as "truly" full coverage. The term full coverage is what some insurance companies use to sell their own combinations of coverage as a package.

You should always find out what insurance coverage types are included in the insurance company's full coverage plan before you sign up. Make sure it includes only the coverage you want. This technique can save you money.

Deductibles
Something to keep in mind when you get your insurance coverage, is your deductible. A deductible is a specified amount that the insured motorist must pay to the insurance company before they pay any claims.

Deductibles are generally $250, $500, and $1000. You should be aware of your deductible amount because it can affect your premium. In most cases, the higher the deductible the lower your premiums are going to be. But be aware that the deductible must be paid in full before the insurance company pays any claims.


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There has been a rise in accidents involving uninsured motorists. Many states now require motorists to be insured, because of the many people who are injured, or whose property is damaged without financial relief. To find out what the requirements are for your state, click the state link below:

Alabama Auto Insurance Louisiana Auto Insurance Ohio Auto Insurance
Alaska Auto Insurance Maine Auto Insurance Oklahoma Auto Insurance
Arizona Auto Insurance Maryland Auto Insurance Oregon Auto Insurance
Arkansas Auto Insurance Massachusetts Auto Insurance Pennsylvania Auto Insurance
California Auto Insurance Michigan Auto Insurance Rhode Island Auto Insurance
Colorado Auto Insurance Minnesota Auto Insurance South Carolina Auto Insurance
Connecticut Auto Insurance Mississippi Auto Insurance South Dakota Auto Insurance
Delaware Auto Insurance Missouri Auto Insurance Tennessee Auto Insurance
Florida Auto Insurance Montana Auto Insurance Texas Auto Insurance
Georgia Auto Insurance Nebraska Auto Insurance Utah Auto Insurance
Hawaii Auto Insurance Nevada Auto Insurance Vermont Auto Insurance
Idaho Auto Insurance New Hampshire Auto Insurance Virginia Auto Insurance
Illinois Auto Insurance New Jersey Auto Insurance Washington Auto Insurance
Indiana Auto Insurance New Mexico Auto Insurance Washington D.C. Auto Insurance
Iowa Auto Insurance New York Auto Insurance West Virginia Auto Insurance
Kansas Auto Insurance North Carolina Auto Insurance Wisconsin Auto Insurance
Kentucky Auto Insurance North Dakota Auto Insurance Wyoming Auto Insurance

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