If you have own car, you probably know a little about insurance. You've probably heard about or franchise award, but really understand the different parts of an auto insurance policy? Know how to choose the best coverage?
47 states require that you have at least some type of car insurance, then it is a good idea to know what the law requires and what additional or optional coverage that will best protect you in an accident.
Before purchasing an auto insurance you should consider a number of factors, including the type of car you own, your driving record and the amount you want to pay. By understanding the basics of auto insurance you can be sure that the policy you choose will take care of your needs in case of an accident.
In this paper the types of coverage, which insurance companies offer, and even the possible insurance needs will be presented. Also, check what affects the price of car insurance, how to decrease costs and understand the components of your policy.
Types of cover
All those who drive must have car insurance. In many states, this is required by law. When you purchase insurance, is acquiring what we call "policy". Your policy is based on a variety of factors, including the type of car you drive and the type of insurance you want. The car insurance policies are actually packages of different types of insurance coverage.
The first step in understanding an insurance policy is to understand the various types of coverage that insurance companies offer. Some of this coverage may be required by your state and others may be optional.
Liability: This coverage pays for personal injury and property damage to third parties. Personal damages include medical expenses, pain, suffering and unearned wages. The damage includes damaged property and automobiles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must purchase, but you can always get more coverage than your state requires.
Collision: This coverage pays for damage to your vehicle when there is collision with another vehicle or object.
Full insurance: This coverage pays for loss or damage to the insured vehicle that have not been incurred in an automobile accident. The types of damages that the insurance covers include the total losses caused by fire, wind, hail, flood, vandalism or theft.
Medical Coverage: pays for medical expenses regardless of who was at fault when they are caused by an automobile accident.
PAP: Personal Accident Protection (PAP) is required in some states. This coverage pays medical expenses to the insured driver, regardless of who was at fault, for treatment caused by car accident.
Uninsured Motorist: pay the damage to your car when an auto accident is caused by a driver who has no liability insurance.
Underinsured motorist: pay the damage to your car when an auto accident is caused by a driver who has insufficient liability insurance.
Refund of rent: this type of coverage will pay a rental car if your car was damaged due to an accident. Typically, this coverage has a daily allowance for the rental car.
Many insurance policies combine several of these types of coverage. The first step in choosing the insurance you want for your car is to know the laws of your state. With this, you know what the minimum insurance you need. Good to know that even if your state does not require a large insurance, extra coverage may offset the expense. After all, nobody wants to be caught out with bills of thousands of dollars due to a car accident.
So we'll see how to determine your insurance needs.
Knowing your needs
The fact that your state require a minimum amount of insurance does not mean you have to purchase insurance at this exact value. In fact, many drivers get more coverage than are required to be insured against various problems, and not just a little bump against. To determine what your insurance needs, consider the following five procedures.
Know the laws of your state
Remember that 47 states require you to purchase liability insurance. The liability insurance is the one that pays for personal injury and property damage that you may cause to another driver. Fifteen states, including Florida, Maryland, Michigan, Massachusetts, New York and New Jersey also require you to purchase Personal Accident Protection (PAP). This coverage pays your medical expenses and wages that failed to be received because of an automobile accident. The minimum amount to be insured will likely be determined by state law, but many people are encouraged to acquire a value greater than the minimum required.
Know Your Options
There are many car insurance options, but knowing what you need is the key point to make sure you are adequately covered. You want coverage that provides a rental car if your car is broken? Want a full guarantee to pay the parts and hand labor if your car sustains damage? If your car is leased, you will probably need insurance to pay the difference between what your insurer and pay what you owe rent if the car is completely destroyed.
Know how much you can spend
If you know the laws of your state, and analyzed their personal needs, then you can already join the different parts of car insurance coverage in a single policy. The first part of the policy is almost always liability insurance. If you only have a minimum liability coverage and injure someone, the lawyer of the person who was hurt can go after your personal assets. So you need to evaluate your property and knowing what you can lose in the event of an accident. Many insurers feel that minimum liability is a gamble. In fact, this is why it is often a slightly larger amount for more protection. After all, if you get involved in an accident, it's much better for the insurance company to take responsibility of what you be blamed. Remember to evaluate all possibilities such as: if I destroy someone's car, will my insurance cover? How much will I have to pay out of my own pocket? The answer to this type of question will determine what coverage will make you feel more confident should an accident occur.
Know your car
If your car was destroyed, you would afford to replace it? If not, you will want full coverage against collisions. The decision to purchase this coverage is usually based on the value of your car. The procedures usually suggest that if the value of your car is less than $ 2000, not worth buying full coverage against collisions. If you are a car owner $ 50 thousand, certainly worth the worth paying an extra $ 200 annually or ensure that the car will be replaced if you engage in a serious accident.
Know about your other insurance
Many people do not realize that other types of insurance, including health insurance and residential, can pay for damages relating to an automobile accident. For example, if you have a full health coverage probably will not need more than the Personal Accident Protection (PAP) minimum required. Make sure the insurance coverage you already have not to purchase unnecessary coverage.
The best way to buy insurance that fits your needs is to examine potential policies and know how much you want to bet. For example, it may not be useful to acquire collision insurance if your car is not really worthwhile - would cost less to repair it than to keep it insured. Car insurance is simply how much you want to pay out of your own pocket in relation to how much you want the insurance cover. Decided this, you will already be routed to purchase your car insurance policy.
From: http://www.hsw.uol.com.br/
