Auto insurance policies are of various kinds and can be obtained for varying prices. You can save up to $800 on your auto insurance policy while getting the same cover depending on which company you chose. Some companies offer your cheaper premiums at a price, the price being a significantly lower cover; beware of such deals and stay away from them.
The importance of the right cover
Insurance is meant to protect you from financial liability and an insurance policy that can not do that is pointless and is at its best only a means to escape a ticket. Escaping a ticket is the least of your concerns if you get into an accident; accidents prove to be a very costly affair if you don’t have insurance to save you. If the accident was indeed your fault you will not only have to pay for any damages you have caused to the other parties vehicle but also his or her medical bills, along with medical bills for any passengers. If the other party is not satisfied with the pay out you provide you could be looking at a lawsuit, lawsuits prove to be far more costly in terms of attorney’s fees, legal fees and the time lost which could have been productive hours at work for which you would have received remuneration.
Types of auto insurance cover
- Liability insurance: liability insurance protects you against any damage you may cause to another persons vehicle and medical bills for them and their passengers.
- Collision insurance: collision insurance protects you against any damage done to your vehicle or any bodily harm you may face from an accident that wasn’t your fault.
- Uninsured and underinsured insurance: accidents with a driver who has no or inadequate insurance leaves the person who has suffered the loss to cope with it on his own or file a lengthy law suit to get remuneration. Incidents which involve hit and run make the lawsuit impossible and the vehicle owner needs to spend out of his own pocket for the repairs. Uninsured and underinsured insurance protects you in such a circumstance and pays or any bodily harm or property damage you may suffer.
Note: Liability, collision and uninsured and underinsured insurance work hand in hand to provide you with a decent cover which can save you thousands of dollars in the event of an accident.
- Comprehensive insurance: insures you from collisions with anything other than another vehicle and it is not uncommon for your auto insurance company to ask you to take collision insurance before you can qualify for comprehensive insurance. Comprehensive insurance covers fire, theft, vandalism, damage due to falling objects and other projectiles, floods and earthquakes to name a few.
Extent of cover/Limits
Picking a good limit is as important as picking a good cover. If you have protection worth only $15000 on your car for collision related damage and your car worth $100000 is totaled, you will only get a payout of $15000 less any deductible you may have. Such a situation is almost equivalent to not having insurance and should be avoided at all costs. Set your deductibles as low as you can, they might help you to save a few bucks on your premium but will surely come back to haunt you later.
A good insurance policy
This type of policy is not a cheap auto insurance policy. It is a policy that has your back and will save you from financial damnation in the event of an accident.