Thursday, December 8, 2011
Taking The Mystery Out Of Your Car Insurance Policy
Shopping for insurance can be tough. It's not like looking for something simple like apples, when all you need to do is check for bruises, and check for the price. When comparing insurance policies, you really need to understand what's involved in order to make an intelligent decision. In this article, you'll learn to do just that.
To start with, there's something called "bodily injury liability." The "bodily injury" part sounds pretty simple, so what's the "liability?" That means when you cause harm to somebody else. So bodily injury liability is the part of the insurance that covers hospital bills of the other person that you crash into. So if you choose a lower amount of coverage, like five thousand dollars, to save some money, you could get into financial trouble if their hospital bill goes overt his amount.
The same idea goes with property damage liability. This is the amount you have to pay if you do some damage to another persons car, or house, or maybe a mailbox or something. Also, if you don't have enough of this coverage, and you do some major damage (like crash into a Starbucks) then you'll have to pay the difference yourself. So make sure to get enough property damage liability, and try not to crash into a Starbucks.
Some people question the need for collision coverage. This is the general part of the insurance that covers your car if you crash into another car. In many states, this is required by law, so you don't have much of a choice. The question is how much should you get? If you own an 1983 Toyota Tercel, you probably don't need much. However, if you just got a brand new BMW, you might need a bit more.
The other part that is required by law is comprehensive. Usually the two together are called "comp and collision." This covers everything else besides the actual damage to the car. If you happen to crash into a new Mercedes, and you've skimped on this section of your insurance, you are going to be in some hot water, so be careful.
Even though insurance is required by law, there are still people out there who don't have insurance. Because of them, you should get uninsured motorist. This means if somebody who doesn't have insurance crashes into you, you'll be covered when you otherwise wouldn't.
Depending on where you live, you might also want to get theft coverage. On the other hand, if your work has a secured parking lot, and you park in your locked garage every night, and never drive and park anywhere else, then you probably don't need this. But if you drive to the supermarket, or the gym, or the movies, then getting this would be a good idea.
No fault insurance, where it is permissible by law, means that everybody pays for their own damage with their own insurance. So if you are waiting patiently at a stop light, and some guy who's paying more attention to his iPhone than the road crashes into you, you've still got to pay for your own damage.
Understanding your car insurance is important to make sure you are covered enough. That way, you can protect yourself from potential financial ruin. Now get out there and drive safely.
For more information on getting the best car insurance rates possible, please visit http://www.colescarinsurance.net today.
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