What You Need to Know About Auto Owners Insurance
Auto owners insurance has lots of sophisticated terms involved. It is a must to know these various terms and definitions so that you are educated and prepared to buy this kind of policy. It might be straightforward to just buy whatever the company sells you, but then that can prove to be very expensive in the long term. This is especially true if you do not have any concept of what you are actually paying for. Would you not rather take a bit of time to study insurance and know what you are getting for your money?
Auto owners insurance is necessary in all fifty states, but some laws make allowance for payment of costs in lieu of insurance. Though this is a nice opportunity, you should not drive without car insurance. The monetary security that it provides is truly precious.
If you have ever been concerned about getting in a car accident, then you know how pricey it can be. Imagine paying those costs while you are broke or worse, paying legal costs or facing jail time for not having insurance or not being able to pay expenses.
Based on statistics, the most typical kind of auto owners insurance coverage is body injury liability. This coverage pays for wounds and deaths related to an accident that you cause. Boundaries are split; there is a limit for each person and for each accident. On your policy, it will look like “100/300.” Those numbers mean that you would have $100,000 per person for injury coverage and $300,000 per accident. Property damage coverage is also incorporated in most state laws. This is available in amounts from $5,000 all the way up to $1 million in coverage. This coverage will pay for any property or other cars that you damage in an accident. Another form of available coverage is Total and Collision coverage.
Total and Collision auto owners insurance coverage are sometimes only included on full coverage policies, unless requested otherwise. Total coverage pays for damages to vehicles that are not accident related. Collision coverage pays for repairs related to an accident for your automobile, including one-car accidents, or if you happen to hit a pole in a car park.
Knowing this should help you become more familiar with terms you need to know before buying car insurance. Gaining this knowledge will help you select the best and cheapest car insurance policies in your area. This will also protect you from getting bad deals by knowing what to look for and what to ask your agent.
