By
Pete Lance
Reading
auto insurance policies can be like trying to decipher advanced calculus. It's
really not that difficult if you understand a few basic terms. Collision,
Comprehensive, Bodily Injury Liability and Property Injury Liability are the
main terms you need to fully understand.
You'll appreciate Collision Coverage in the event you need repairs or
replacements if your vehicle collides with another vehicle or property. The
higher the deductible you elect, the lower your premiums will cost you. If
you're at fault for something, well of course it would still be an accident, as
I doubt you'd plan to run into that guard rail, but how much would you be able
to afford to pay out of pocket for repairs? $250? $500? $1,000? Just like
medical insurance, you'd have to pay that deductible amount first and then the
insurance company would pay for the remaining charges for the repair.
Another term to become intimately familiar with is Comprehensive coverage. This
is the coverage that pays for damage caused from falling objects, fire, certain
natural disasters, theft and vandalism. Deductibles work the same way as with
Collision; the more out of pocket costs to you, the less your insurance premium.
In addition to knowing how much Collision and Comprehensive coverage you have,
you'll want to know about your liability coverage. Let's say you rear-end
another driver. Or your foot slips off the brake onto the gas pedal and you plow
down a mailbox. Your liability coverage will kick in and pay for the damages
that you caused with your insured vehicle. Your liability coverage will, or
could, include bodily injury (people) and property damage.
You don't want to go without Bodily Injury Coverage. If you were at fault in an
accident and others involved needed to go to the hospital and/or lost wages from
missing work, those costs would come out of your pocket if you are not insured
with Bodily Injury Coverage. It doesn't take a genius to know how quickly those
amounts can add up. This type of coverage can also help you in the event the
other party takes legal action against you. Many states require you to carry
Bodily Injury Coverage.
The other part of liability includes Property Damage coverage. Can you imagine
how much it might cost should you accidentally drive into the side of someone's
home? You wouldn't want to be caught without property damage insurance should
you need to pay for repairs to another vehicle, building or anything else you
might hit. As with Bodily Injury overage, Property Damage coverage also helps
protect you in the event of a related lawsuit. Every policy will have its limits
and various degrees of coverage. It's important that you understand the basics
of what you are paying for and why it is necessary. No one plans for an
accident, be prepared!
About the author:
Pete Lance is the founder of USGasTracker.org, a premier company which helps the
consumer save money on gasoline. Thousands of gas stations across the nation are
tracked daily to guarantee the lowest prices on gasoline anywhere in the United
States.For more information about getting the lowest gas prices in your town
visit:http://www.usgastracker
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