All About Auto Insurance

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Almost every state requires you to have auto insurance and insurance is now tailored to the individual making prices vary. The following factors will influence how much you pay.  

·        Your driving habits - Are you a safe driver? How long have you had a driver’s license?

·        Your age, gender and occupation.

·        Where you live, city vs. suburb and do you rent or own a home?

·        The kind of car you drive along with safety and anti-theft features your car has.

·        Whether the car is being financed vs. being owned?

·        The purpose of the vehicle (business or pleasure) and the number of miles traveled a day.

·        Your credit history and whether or not are you a resident of the US.  

There are many companies who now underwrite car insurance policies and as a consumer, you should shop around for the best possible coverage at the least cost based on all your personal needs. The insurance company that gives your parents a good price may not be the lowest price for you. Try to look at some of the smaller companies in your state. One thing to remember is that you can lower your premium by raising your deductible and it is important to read the laws in your state governing required and minimum coverages.

If you are a new driver (a teenager), your rate will be higher because teenagers are considered a risk. Parents of teens can expect to pay 50 % more than people who do not have teens driving in their household.

Types of Coverage
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Personal Injury Protection (PIP)

This is a wide form of medical payment coverage and is now mandatory in many states with no fault insurance. Some policies cover you only in the state, which you reside, read your contract carefully and ask many questions before deciding on a carrier. PIP also pays for lost wages, and the cost of in-home medical help.

Property Damage Liability

This can cover repairs and/or replacement of the other car or property that the insured damages in an accident. Usually set at about $10,000.

Bodily Injury liability

In an accident where you have been found to be at fault, this can pay for medical treatment, rehabilitation that is incurred by another driver. It can also cover the client’s legal costs.

Collision and Comprehensive

The minimums of state insurance requirements usually are not enough to cover actual losses and or damages in the event of an accident or theft. Collision and comprehensive pays for the repair or replacement of your car at current market value regardless of who is at fault.

Uninsured Motorist

One in every four drivers has no insurance at all and this will pay you and your household for medical costs, rehabilitation and pain and suffering from an accident caused by a driver who lacks the proper insurance. Limits are usually about the same as bodily injury liability, and most states will allow you to purchase as much coverage as you like.

Med. Pay

This optional coverage will pay doctor and hospital bills, and rehabilitation for you and your passenger, and can be bought in increments of $1,000.00, $5,000.00 and $25,000 and has no deductible. If you have a good health insurance plan, you may not need this coverage or can choose to purchase only what your health insurance plan does not cover.

Credit Life Insurance

This optional policy pays any credit or loan payments up to the maximum of the coverage in the event of the insured death or disability leading to the inability to work and make regular loan payments.

Tips for saving on your Insurance Costs
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·        Determine exactly what coverage you need.

·        Get at least four quotes and compare them.

·        Ask insurers what discounts are available (good driving record [No accidents or traffic violations for 36 months], good student discounts [3.0+ GPA], non-smoker, anti theft devices and car safety features [air bags and anti-lock brakes]).

·        If you are married you may get a better rate if you have only one policy because having more than one car on a policy will often lower the rate.

·        Getting a car that costs less to insure. Luxury cars cost more to insure because of the higher cost to fix and replace them.

As always, we welcome your questions and comments, so please write to us and share your thoughts with us. 
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