For anyone who knows a lot about auto insurance?
Question:
Answer:
It is VERY important to read every document you sign, review every declarations page you receive, and read your policy when you get it.
The declarations page lists 1) who the policyholder is, 2) who the insured drivers are, 3) the vehicles covered, 4) the coverage for each vehicle and 5) endorsements to your policy.
An endorsement, or addendum, is extra coverage. For example, if your auto policy only pays $1000 for stereo equipment but your equipment cost $2000, you want an endorsement for $2000 so you have coverage.
A policy spells out what YOUR rights & responsibility are and what THEIR rights & responsibility are in the event you have a claim. This is dictated under each coverage and can vary from coverage to coverage. This is a legal and binding contract between both parties and in order for coverage to apply all terms of the policy must be met.
There is no such thing as 'full coverage' insurance. Each coverage is seperate and must be purchased seperate, and you should buy coverage based upon your particular needs. For example, if you have a clunker that's paid for may only want to carry liability and uninsured motorist property damage and uninsured motorist coverage(if you get hit by someone w/o insurance and they are at fault). If your car is relatively new you would want to purchase liability coverage, uninsured motorist coverage, collision coverage, comprehensive coverage, rental car coverage, and maybe even towing coverage. If you are making payments on your car to a bank, you may even want to buy GAP coverage.
Keep in mind that the higher your limits are, the less of an exposure you have to out of pocket expenses. Especially when it comes to your bodily injury and property damage limits (aka liability coverage).
You will have to select a deductible for your comprehensive and collision coverage. The lower your deductible, the higher your premium, the higher your deductible the lower your premium. Your deductible is what YOU agree to pay towards your vehicle repairs before the insurance company will pay. The standard deductible is $500. This means you pay the 1st $500 of damage, the insurance pays the rest.
Collision coverage pays for damage due to collision with another vehicle or object. Comprehensive coverage pays for damage caused by anything other than a collision, such as fire, theft, vandalism, shopping cart.
As the registered owner of the vehicle you are ultimately responsible for anything your car does whether you are driving it or your friend is. So don't let anyone drive your car unless it's an emergency, like you are too drunk to drive (just be sure they are sober).
You pay for insurance just in case you get into an accident and damage your car or someone else's property or cause/receive injuries.
The law requires you to have a minimum amount of insurance to drive, but you can purchase more, like, if you drive a nicer car and want to be sure you'll be able to afford repairs. Or you can just buy the minimum and hope you don't need anything costly fixed.
Talk to an insurance agent about what would be right for you. You may be eligible for a student discount. An agent can explain to you how a claim works, should you get into an accident, and tell you just what you will end up paying.
Good luck!
well my daddy owns his own insurance agency and he sels all kinds of insurance. from wat he says to his customers i learned tht if u dont hav auto insurance, ur gonna hav to pay for watevr damages happen to ur car. but thts all i noe. i think tht most of the basics. try callin an insurance agent for help. most agents should be willing to explain everything to u and f theyre not, tht just means they hav extremely bad customer service and u dont wanna get insurance from them
Auto insurance is just like all other kinds of insurance, in that it protects you in case of accident by paying for damages. All states and provinces have a minimum amount of insurance that is required to drive.
This is usually consisits of liability insurance
Liability insurance covers all third parties when you are found at fault for an accident up to a fixed agreed upon amount, for medical expenses and property damage. So basically if you are at fault for a car accident, your liability will cover the damages you cause to the other driver.
It is important to have a high level of liability coverage as any damages over your coverage amoutn will be your responsibility to pay. This could end up being several thousand dollars so make sure you have enough liability.
Other forms of insurance you can get are comprehensive and collision coverage which protect your car and more in depth information on all auto insurance including the state minimum requirements can be found at http://www.auto-insurance-knowledge.com...
Hope that helps
Welcome to the abridged version of auto insurance 101:
1) Collision covers your car if/when you crash it.
2) Comprehensive covers your car if it is stolen, burns, hail destroys it, etc.
3) Liability covers the other car and/or people you will crash into.
4) Deductibles are your portion of collision and comprehensive -- the higher they are the less your premiums will be. (note: just be ready to fork out a thousand dollars of your own money for every loss)
5) Other coverages are add-ons, like rental (which you won't be able to do until you turn 21), emergency road service, etc.
6) Remember, you don't need insurance -- until you REALLY NEED insurance, so buy as much coverage as you can afford.
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