As responsible drivers we all know that auto insurance is essential. If you're involved in a major road accident you'll be glad that you have a car insurance policy to help you out with paying for car repairs, medical expenses or damage to personal property. Even if it's only a small incident, the right auto insurance Burlington policy can be invaluable. There are lots of different policy and coverage options to choose from when buying car insurance, so we've compiled some useful information on what you need to know about auto insurance and your policy.
Part of being a responsible driver is ensuring you have adequate auto insurance to cover you, your passengers and other drivers on the road in the event of an accident.
Your car was a big financial commitment for you. If you were involved in an accident and you didn't have insurance, do you have enough spare cash to buy another car outright, for medical bills, for legal bills, and for reimbursing a third party? The cost of a collision can soar into the hundreds of thousands of dollars. An auto insurance policy is far cheaper overall than paying for these costs yourself, and depending on the type of policy and coverage you purchase, can protect you financially, legally and medically in case of an accident.
What is Comprehensive Coverage?
There are a variety of car insurance coverage levels, and legal insurance requirements depend on the state you live in. Below are some of the types of car insurance coverage most commonly sold in the US:
The amount of cover and what will be paid out is agreed during the initial quote. Make sure you check what is included in third party cover and whether it is realistic enough for your needs.
Liability coverage - covers property damage and injuries to others caused by your car when an accident was your fault.
Full coverage can include comprehensive car insurance cover and collision cover which offers you, your passengers, and your car protection in case you are involved in a road accident.
Comprehensive coverage - pays out if you sustain damage to your vehicle in an event that wasn't a collision with another vehicle.
- Damage caused by fire
Uninsured motorist coverage - pays out and protects you if you are involved in an accident with an uninsured driver.
This type of insurance will cover medical expenses and personal injury costs of you and your passengers if you're involved in a collision regardless of who is at fault.
Rental reimbursement - pays for a rental car if your vehicle is off the road.
This might be offered as a policy extra that protects you in case of a collision or accident involving an under-insured or uninsured driver. Your insurance company will pay out a sum of money to cover damages and will attempt to recuperate their losses from the at-fault party through other means.
It is common practice for the person who was at fault to pay. If they have a car insurance policy their insurance company will pay for any damage caused. If they don't have adequate insurance, who pays depends on what level of coverage you have, such as under-insured/uninsured motorist cover.
Comprehensive coverage normally makes up a large chunk of your car insurance premium, since damage to cars is one of the most common reasons people claim on their insurance. Even though comprehensive car insurance may be more expensive due to a higher premium, you can control the cost to an extent by managing your deductible. Consider realistically what you can afford to pay out your own pocket if you car gets damaged, before you think about tweaking the amount of your deductible. If you think you can pay a larger amount then your monthly premium will be lower.
How much you pay for your auto insurance policy depends on a number of factors. As we've discussed before, auto insurance is a business based on negating risk, therefore, how much you pay depends on how 'risky' a customer insurance providers deem you to be. In general, drivers who have a good, clean driving record, years of driving experience and are between 25 and 60 years old will have lower insurance premiums than others. Where you live, what job you do, the make and model of your vehicle, and how often you use your car will have an impact on your auto insurance rate.
Moreover, think about how much money you would lose through personal injury if you were involved in an accident and you no longer had access to a car to get to work. On the other hand, if you only drive short distances for social purposes, it may be worthwhile only investing in third party or liability insurance.
Part of being a responsible driver is ensuring you have adequate auto insurance to cover you, your passengers and other drivers on the road in the event of an accident.
Your car was a big financial commitment for you. If you were involved in an accident and you didn't have insurance, do you have enough spare cash to buy another car outright, for medical bills, for legal bills, and for reimbursing a third party? The cost of a collision can soar into the hundreds of thousands of dollars. An auto insurance policy is far cheaper overall than paying for these costs yourself, and depending on the type of policy and coverage you purchase, can protect you financially, legally and medically in case of an accident.
What is Comprehensive Coverage?
There are a variety of car insurance coverage levels, and legal insurance requirements depend on the state you live in. Below are some of the types of car insurance coverage most commonly sold in the US:
The amount of cover and what will be paid out is agreed during the initial quote. Make sure you check what is included in third party cover and whether it is realistic enough for your needs.
Liability coverage - covers property damage and injuries to others caused by your car when an accident was your fault.
Full coverage can include comprehensive car insurance cover and collision cover which offers you, your passengers, and your car protection in case you are involved in a road accident.
Comprehensive coverage - pays out if you sustain damage to your vehicle in an event that wasn't a collision with another vehicle.
- Damage caused by fire
Uninsured motorist coverage - pays out and protects you if you are involved in an accident with an uninsured driver.
This type of insurance will cover medical expenses and personal injury costs of you and your passengers if you're involved in a collision regardless of who is at fault.
Rental reimbursement - pays for a rental car if your vehicle is off the road.
This might be offered as a policy extra that protects you in case of a collision or accident involving an under-insured or uninsured driver. Your insurance company will pay out a sum of money to cover damages and will attempt to recuperate their losses from the at-fault party through other means.
It is common practice for the person who was at fault to pay. If they have a car insurance policy their insurance company will pay for any damage caused. If they don't have adequate insurance, who pays depends on what level of coverage you have, such as under-insured/uninsured motorist cover.
Comprehensive coverage normally makes up a large chunk of your car insurance premium, since damage to cars is one of the most common reasons people claim on their insurance. Even though comprehensive car insurance may be more expensive due to a higher premium, you can control the cost to an extent by managing your deductible. Consider realistically what you can afford to pay out your own pocket if you car gets damaged, before you think about tweaking the amount of your deductible. If you think you can pay a larger amount then your monthly premium will be lower.
How much you pay for your auto insurance policy depends on a number of factors. As we've discussed before, auto insurance is a business based on negating risk, therefore, how much you pay depends on how 'risky' a customer insurance providers deem you to be. In general, drivers who have a good, clean driving record, years of driving experience and are between 25 and 60 years old will have lower insurance premiums than others. Where you live, what job you do, the make and model of your vehicle, and how often you use your car will have an impact on your auto insurance rate.
Moreover, think about how much money you would lose through personal injury if you were involved in an accident and you no longer had access to a car to get to work. On the other hand, if you only drive short distances for social purposes, it may be worthwhile only investing in third party or liability insurance.
About the Author:
Learn more about Auto Insurance Burlington. Stop by Justin McKenzie's site where you can find out all about Auto Insurance and what it can do for you.
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