Many people look forward to buying car insurance about as much as having their wisdom teeth pulled by a dentist named Dr. Pain. Today I intend to show you how to take a lot of the sting out of purchasing car insurance by arming yourself with a little knowledge.
Many people believe car insurance is a simple as black or white, either you have "liability" or "full"
coverage. In fact there many important options in between. In becoming informed you will need to know how to research, and what questions to ask.
The three key considerations when purchasing car insurance are price, coverage, and company. The first key consideration when buying car insurance is price. The matter of fact is that you will never find one company that has great rates for everyone. Different companies target different age and risk groups, so while one company has a good price for your friend, they make not have a great price for you.
Usually 10-15 quotes will probably give you a good range of prices to choose from. A good resource you can always rely on is the yellow pages, where the listings are localized to your specific area and everyone who is anyone is there both big and small.
The second key consideration when buying car Insurance is coverage. Coverage varies from company to company but the basic components usually remain constant. The first is liability. Liability pays in the event you hit and injure another person or damage there vehicle. The two parts of Liability coverage are Bodily Injury and Property Damage. Both are expressed in thousands of dollars. The property damage is the second number and indicates how much the company will pay to fix the other person's car or property.
Medical payments pay a flat amount per person for anyone injured in your car regardless of fault. They range from between $500 to $5,000. This amount is not meant to absorb the cost of an injury, but to offset immediate out of pocket expenses such as health insurance deductibles.
The third is uninsured and underinsured motorist coverage. This protects you and your passenger in the event you are hit by a driver with no insurance or not enough insurance. The fourth is comprehensive and collision covers damage to your car. Collision pays to fix your car in the event it is damaged in an accident that is your fault. Comprehensive pays in the event of fire, theft, and vandalism or anything collision does not.
A deductible will usually apply and is the amount of money you must first pay and the insurance will pay the rest. Deductibles range from $50 to $5000. The higher the deductible, the lower your cost.
The fifth is towing and rental reimbursement. Towing provides a flat amount of coverage per disablement and rental reimbursement pays a specified amount per day in the event you need to rent a car while yours is being repaired.
The sixth and final coverage is Special Equipment coverage. This covers any special equipment installed or attached to the vehicle not factory or dealer installed. This will usually include rims, stereos and custom accessories. How much or which coverage is right for you? It's a personal decision that no one can make for you.
The third key consideration when buying car insurance is the company and agent. When buying insurance the quality of the company should be taken into consideration. One way to evaluate the quality of a company is to inquire about their "Best" rating. The rating is based on their financial strength, operational performance and ability to meet their obligations.
In conclusion if you spend a little time checking out the three key components of buying car insurance price, coverage and company, you can avoid a lot of headaches later especially in the event of an any accident. With a little information and little more leg work, you can eliminate any confusion from this process and be sure you have the right car insurance for you.
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Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Underinsured
By: lunchlady | 12-07-2008
what is the statute of limitations on motor vehicle accidents in nj for underinsured drivers? if the person at fault does not have enough coverage to cover the cost of replacing a totaled vehicle, can the insurace company of the other driver sue them personally for the difference? if they can, is there a time frame they have to do it by?
Is it a good idea to purchase medical Payment or ...
By: user2782 | 11-07-2008
Is it a good idea to purchase medical Payment or PIP auto insurance for someone with on Medicare and Tricare (retired Military) supplemental insurance? Colorado does not require it..
How can I fix a manual window off its track on a ...
By: sweetspots | 10-07-2008
How can I fix a manual window off its track on a 1995 Pontiac Grand Am also I'm having trouble just getting the door panel off.?
Uninsured in car accident
By: bran | 08-07-2008
my husband was involved in a car accident july05.very minimal damage to other vehicle,none to ours. i just found out our policy cancelled on june30.so we have no insurance to cover this accident. the family of 6 that was in the van were not hurt and 3 of the passengers left before the law arrived because they were going to a wedding. now it is july 08 and 2 of the passsengers are complaining of back problems. i have pictures of the damage to their vehicle and no tickets were given. where do we stand on this?i dont have a problem at all with paying for the damages to the van. but i do have a problem with the injuries. my husband bumped them in the rear pulling from a stop sign. barely any speed at all. any advice would be appreciated. thanks alot!
NJ Auto Insurance Code Numbers
By: Mary | 08-07-2008
What NJ auto insurance company has the code number 426?
Rights of uninsured motorist
By: inquiring mind | 04-07-2008
My vehicle was hit by an insured driver. Clearly her fault and she admits it. However, at the time, I was not insured. Do I still have a claim against her?
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