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What Should You Look For in an Auto Insurance Company?
What is a car insurance? What will an auto
insurance cover?
Auto insurance companies cover you and your
passengers in the event of an accident. But it is up to you to decide the level
of cover you will get.
Will the damages to your property be covered by
the company? Will all the passengers be covered or only your family? What if
your daughter was driving your car?
What questions should you ask your auto insurance
company when it comes to auto insurance? This article help you choose between
the various insurance policies.
Types of auto insurance
Liability insurance, or third party insurance.
This is general the lowest form of insurance
offered by an auto insurance company. This is the basic insurance, if you are
involved in an accident, and it is proven to be your fault, the auto insurance
company will pay damages to the other party.
The cover offered by the auto insurance company
is usually set beforehand. These are the maximum amount the auto insurance
company will pay in case of accident
For example the agent will agree on a $10000
coverage per person, (bodily injury) and/or $40000 coverage in bodily injury
and/or $10000 in property damage per accident
You need to confirm with your auto insurance
company what they will cover and what are the limits.
You might be offered a very low premium by some
auto insurance company only to realize that your cover is minimal and
unrealistic.
Collision and comprehensive coverage,
comprehensive insurance and full comprehensive insurance
An auto insurance company will also offer you a
comprehensive insurance, as the name indicates, you will be comprehensively
covered.
In simple terms it means that if you are
responsible for a collision the insurance company will pay for the repair of
the vehicle.
But it is not so simple, an auto insurance
company will almost always have the final say on what amount will be paid out,
so if it is cheaper to give you market value for the car, then they will.
You might think that your car is worth $1000.00 but
the real market value might be $500.00. This is not an uncommon scenario. So if
the repair of your car are more than $500.00 then the auto insurance company
will simply pay the book value of the car.
You must make sure that the insurance company is
not in control of the market value of the car, normally organisations like the
AA will give an impartial market value.
As with the third party insurance, the auto
insurance company will almost certainly limit the amount that will be paid out,
but in general terms, a comprehensive insurance will have higher limits.
Recreation Vehicle
A recreation vehicle needs its own insurance, a
Recreation vehicle insurance is not the same as auto insurance.
You should not assume that because your car is
comprehensively insured, so is your recreation vehicle.
Other Types of auto insurance
Medical (MedPay), Persona Injury protection (PIP)
and no fault cover
This insurance will cover you and your passengers
medical expenses in the event of a collision.
The no fault cover means that the auto insurance
company will pay regardless of who is at fault. This give you the piece of mind
that, at the very least, your family and friends are covered.
PIP is often a minimum requirement in some
countries or states, ask your auto insurance company what the requirements are.
Uninsured/Underinsured motorists' coverage
This cover, (also sometimes a minimum requirement
in some states), will cover you if the person at fault is not insured or is
underinsured.
You must ask your auto insurance company what you
will be charged in case of such a situation. Normally the auto insurance
company should not charge you some extra premiums.
Rental reimbursement, towing and labour
Those 'extras' often given with a comprehensive
insurance is often use by auto insurance companies as specials.
So in case your car is damaged the auto insurance
company will pay for rental costs, (sometimes only for a few days).
The auto insurance company might also offer to
pay for the towing of your vehicle, (not always included).
As always you should ask your auto insurance
company what is included in the cover.
The legal requirements.
Most states, and most countries will require a
certain level of cover, from full comprehensive car insurance to third party
auto insurance.
In most cases it is up to you, the driver, to
ensure that your auto insurance company offers you the minimum required. In
most cases the insurance company, (the auto insurance company), is under no
obligation to instruct you of the requirements.
But of course, a good auto insurance company
will, (should?), try its outmost to advise you on the best deal for you.
Article Source: http://EzineArticles.com/110198
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