Angel Rosilla: Types of Auto Insurance Coverage
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There are several types of auto insurance coverage. Before you begin your quest for auto insurance quotes, it is important to know what the kinds of insurance are.
When you begin shopping for auto car insurance, this involves much more than just calling up an agent and requesting a quote. To get the most from your auto insurance company, and, therefore, your auto insurance dollar, decide on what kind of risk you want covered and how to shift the risk around using the various insurable options available to you.
What follows are short descriptions of each of the main kinds of automobile insurance coverage available. This article only provides the basics. To learn much more, refer to your policy.
The first kind of coverage you will need is collision. If you are in a crash, this is the part of the policy that provides payment for the damage to your vehicle, without penalty regardless of responsibility. Online auto insurance or insurance the old-fashioned way provides adequate coverage when it comes to collision. Auto insurance rates can vary widely and they can depend on how much collision coverage you decide on. If you drive an old clunker, you may want to keep the collision low.
What happens if the other party is responsible for the damage? Then your carrier will go after the other party on your behalf and collect the payment for damages. Collision amounts depend on the depreciated worth of your vehicle. Collision coverage is usually mandatory if the car is leased or financed.
Auto insurance agents will recommend that a portion of your coverage include “comprehensive.” This is the part of the policy that covers damages caused by non-crash events including vandalism, storms, theft, acts of God, and hitting an animal.
Another portion of your coverage should include “medical.” Medical covers the cost of initial medical bills for you, your family or additional passengers, if you are a passenger, or if you are a pedestrian hit by an auto. What happens if the cost exceeds the limit on your medical coverage? Then you can get more compensation from your liability coverage. You may also need to use any other medical coverage you may have. Automobile insurance agents can help you decide how much coverage to get.
Online auto insurance quotes include liability coverage and this covers property damage and bodily injury that you, as the driver, may become responsible for. Liability will cover any other drivers listed on your policy and drivers driving with your permission, if they have caused injury or property damage. Liability doesn’t cover injuries your family may experience as this will be covered by the medical portion of your policy.
An automobile insurance quote also includes your “uninsured motorist” portion. This is the section of your coverage that covers you for personal injury and property damage if you are hit by an uninsured motorist. The clause also covers you in the event of a hit and run. An automobile insurance company can explain all of these clauses to you.
The last main clause is for “underinsured motorist,” which is just what it sounds like. It covers you if the other party’s liability limits outweigh your costs for damages and personal injury.
While there is no such thing as free auto insurance, FreeAutoRater.com can provide you with free auto insurance quotes and help you find cheap auto insurance, or, at least, the best possible price on your auto insurance.