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How to Make Reading Your Auto Insurance Quote Easier
By John Brennan
Let's face it, there are few people in the world who actually enjoy trawling
through a car insurance policy. All the legalese and multitude of terms
make it heavy going. But it is important to know exactly what you are
signing on for so that you can work out if it is what you want. Once you
understand the different aspects of a car insurance policy you may choose to
forego some of the options in return for a discount on your car insurance
premium.
However, it is unwise to do this if you don't first know what it is you are
giving up. There are a few basic terms that you need to understand like
Collision Coverage, Comprehensive Coverage, Bodily Injury Liability and Property
Damage Coverage.
Here is a snapshot of what each of the terms mean:
Bodily Injury Coverage the funds that an insurance company
would pay for damages caused to another individual involved in a motor vehicle
accident.
Collision Coverage this covers the cost of repair or
replacement of the insured's car no matter who caused the accident.
Comprehensive Coverage this is for the cost of repair or
replacement of the insured's car for reasons other than an accident.
Property Injury Liability or Property Damage Coverage this
covers any costs associated with damage to property as a result of a motor
vehicle accident. In many cases this is mandatory.
With Collision Coverage you can choose the level that you
pay in the event you need repairs or replacements if your vehicle collides with
another vehicle or property. This amount is called the deductible and basically
the higher the deductible you elect, the lower your premiums will be. How
does it work? Just like medical insurance, you pay the deductible amount,
sometimes called an excess, first and then the insurance company pays the
remaining repair costs.
Comprehensive Coverage encompasses things like 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 lower your car insurance premium will be.
Liability coverage either bodily or property damage
kicks in if in the course of an accident there is damage to either another
person or property. For example, if you drive into the back of 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.
Every car insurance policy is different and that's why it pays to read
through several car insurance quotes from different companies so that you can
make a fair assessment of which policy is right for you. Now that you know
about the basics of what you are paying for and why it is necessary, that job
should be a lot easier. Not reading the Sunday paper easy, but hopefully
much easier than you would have found it before reading this article.
About the Author
You can save money on your car insurance premium. Get the information on car insurance that you need so that you can be confident you are choosing the right policy and saving as much money as you can. Visit the Car Insurance Rate Information site.
Article Source: http://www.simplysearch4it.com/article/29806.html
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