USED CAR INSURANCE AREA

Insurance Basics

Types of Mandatory coverage: Bodily injury liability. If you injure someone in a car accident, this coverage pays that person's medical and rehabilitation expenses, and any damages for which he or she may sue you. In most states, you must buy coverage of at least $15,000/$30,000 (the $15,000 pays for injuries to one person; the $30,000 is the total available per accident).    + Property damage liability. If you're at fault in an accident and you damage someone's property, this coverage pays to fix it. In most states, you must buy $5,000 worth of coverage. Many standard policies include a higher limit-often $25,000. (Of course, if you total a new Mercedes, you'll need more).    + Medical benefits. This coverage pays medical bills for you and others covered on your policy, no matter who was at fault in the accident. In most states, you must buy at least $5,000 worth of coverage. The typical driver buys $10,000.   Insurance Basics Chart Of Fees And Other Cost Factors $500 deductible $1,000 deductible More than 1 car Anti-Theft Devices Air Bag No Accidents in 3 Yrs No Violations in 3 Yrs Low Annual Mileage Drivers over 50 Driver Training Course Automatic Seat Belt Anti-Lock Brakes Auto and Homeowners Coverage with the Same Company ++ In addition to the mandatory coverage , you may want:  Collision. It's all well and good to pay to fix someone else's car, but this coverage will pay to fix yours.     +  Comprehensive. This coverage pays for theft, as well as damage to your car from "hazards," including fire, flood, vandalism or striking an animal.     + Uninsured/underinsured motorist. If you're injured in an accident and the person who hits you doesn't have enough insurance -- or any insurance -- you'll be glad you have this coverage. It will pay for your losses and damages, including your medical bills, lost wages, and pain and suffering.

"Understanding Your Auto Insurance" Reading auto insurance policies can be like trying to decipher advanced calculus. It's really not that difficult if you understand a few basic terms. Collision, Comprehensive, Bodily Injury Liability and Property Injury Liability are the main terms you need to fully understand. You'll appreciate Collision Coverage in the event you need repairs or replacements if your vehicle collides with another vehicle or property. The higher the deductible you elect, the lower your premiums will cost you. If you're at fault for something, well of course it would still be an accident, as I doubt you'd plan to run into that guard rail, but how much would you be able to afford to pay out of pocket for repairs? $250? $500? $1,000? Just like medical insurance, you'd have to pay that deductible amount first and then the insurance company would pay for the remaining charges for the repair. Another term to become intimately familiar with is Comprehensive Coverage. This is the coverage that pays for damage caused from falling objects, fire, certain natural disasters, theft and vandalism. Deductibles work the same way as with Collision; the more out of pocket costs to you, the less your insurance premium. In addition to knowing how much Collision and Comprehensive coverage you have, you'll want to know about your liability coverage. Let's say you rear-end another driver. Or your foot slips off the brake onto the gas pedal and you plow down a mailbox. Your liability coverage will kick in and pay for the damages that you caused with your insured vehicle. Your liability coverage will, or could, include bodily injury (people) and property damage. You don't want to go without Bodily Injury Coverage. If you were at fault in an accident and others involved needed to go to the hospital and/or lost wages from missing work, those costs would come out of your pocket if you are not insured with Bodily Injury Coverage. It doesn't take a genius to know how quickly those amounts can add up. This type of coverage can also help you in the event the other party takes legal action against you. Many states require you to carry Bodily Injury Coverage. The other part of liability includes Property Damage coverage. Can you imagine how much it might cost should you accidentally drive into the side of someone's home? You wouldn't want to be caught without property damage insurance should you need to pay for repairs to another vehicle, building or anything else you might hit. As with Bodily Injury coverage, Property Damage coverage also helps protect you in the event of a related lawsuit. Every policy will have its limits and various degrees of coverage. It's important that you understand the basics of what you are paying for and why it is necessary. No one plans for an accident, be prepared!

Ways To Lower Your Insurance

Here are some basic ways to lower your monthly payment: + COMPARISON SHOP The insurer you select should offer both fair prices and excellent service. Quality personal service may cost a bit more, but provides added conveniences, so talk to a number of insurers to get a feeling for the quality of their service. Ask them what they would do to lower your costs. Check the financial ratings of the companies too. Then, when you've narrowed the field to three insurers, get price quotes. + ASK FOR HIGHER DEDUCTIBLES  Deductibles represent the amount of money you pay before you make a claim. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision cost by 15% to 30%. + DROP COLLISION AND/OR COMPREHENSIVE COVERAGE ON OLDER CARS  It may not be cost-effective to have collision or comprehensive coverage on cars worth less than $1000 because any claim you make would not substantially exceed annual cost and deductible amounts. Auto dealers and banks can tell you the worth of cars. + ELIMINATE DUPLICATE MEDICAL COVERAGE    If you have adequate health insurance, you may be paying for duplicate medical coverage in your auto policy. In some states, eliminating this coverage could lower your personal injury protection (PIP) cost by up to 40%. + FIND OUT ABOUT AUTOMATIC SEAT BELT OR AIR BAG DISCOUNTS  You may be able to take advantage of discounts on some coverage if you have automatic seat belts and/or air bags. +