You know the bases of the automobile insurance?

As a driver, you know how crazy it gets on the road. Between the distractions and the rush to get somewhere on time, accidents can and do happen. Fenders get bent and sometimes people get injured. Even if you are just parked in your driveway, a tree branch can hang through your windshield or someone can steal your car. The worst case, auto insurance is there to protect.

Auto insurance can protect you against the financial risks associated with bodily injury and property damage caused by automobile accidents, theft or vandalism. All States require that purchase you at least a minimum amount of liability insurance. Other types of auto insurance coverage can be optional or required, according to the regulations of the State. If you have a car loan or lease, the lender will require also that you buy the coverage of the car itself.

It's legal coverage mandated by the State, that you will be required to have (more):

Bodily injury liability: Protect your assets if you are responsible for a car accident in which other people are injured or killed. Responsibility for damage to property: Covers repair or replacement of cars or other goods of others.

This coverage will also pay the legal fees to defend yourself against lawsuits related to accidents. To properly protect your assets, you probably want to buy much more than the minimum amount of coverage required in your state.

Although these blankets are optional in most States, it is often rational to purchase them, unless you can afford to pay the loss yourself.

Collision: Payroll repair or replace your vehicle if it is damaged in an accident. (Learn more.) Complete: Ensures your car against damage caused by something other than a car accident (e.g., theft, fire, flood, vandalism). It is also called other than collision. (Learn more.) Non-insured/underinsured motorist coverage: Unless you live in a State "fault" (where your own insurance will cover your losses), this coverage ensures you against certain losses caused by other drivers with little (underinsured) or no (their uninsured) did auto insurance. It may cover such things as the loss of salary and provides coverage to your passengers and those listed on your policy while riding in the other cars or pedestrians. (Learn more.) Medical payments coverage or injuries bodily protection (PIP): Covers various medical or funeral expenses for you and your passengers, and those that are listed on your policy while riding in the other cars or pedestrians. (To learn more about: medical payments coverage and the PIP coverage.)

Most of these blankets is optional, relatively cheap and provide much protection, although they may not be useful in all circumstances.

Coverage Gap: Pay the difference between the actual value of your car and the amount that you owe on your loan or lease if your car is totaled in a covered accident. It is sometimes called loan/rental coverage. (Learn more.) Tow and work or roadside assistance: Towing and labor typically covers costs for towing your car to a repair centre and make minor repairs after a covered accident. Roadside assistance covers usually towing, minor repairs and fuel delivery, even if only there was no accident. Refund of rental: Pays the costs of rental of a replacement car if yours is not cross due to a covered accident. Some auto insurance companies send a cheque for part of the quantity if you rent a replacement car. (Learn more.)

That would be a good thing, but it is not always true. Here are some things that you will still need to cover yourself.

Franchises: The amount of money that you have agreed to pay your pocket before your insurance kicks in. You can have different deductibles for different covers and liability insurance was never a deductible. Exclusions: Events or situations your strategy specifically does not cover, such as damage to property or injury personal intentionally cause you or damage to your own car due to a mechanical failure or wear, and. Expenses above the limits of the policy: All expenses that exceed the amounts shown on your contract policy for the coverage you are entitled to receive.

Many factors affect your auto premium of insurance, including your age, the State in which you live, the brand and model of your car, where your car is parked at night and your driving record. Although you cannot do much about some of these factors, here are seven tips to manage your rates.

Increase your deductible insurance eliminate optional blankets if you do not need (e.g., rental refund if you have other means of transport) eliminate collision and comprehensive coverage if you drive an older car that would not be much to replace and if you could afford to pay for repairs if necessary ask insurance discounts (e.g..)(, low mileage discounts, rebates for the safety or anti-theft devices) auto available for your car (if applicable in your situation) insurance to avoid buying a vehicle subject to flight or expensive repair drive safely to establish good behaviour record maintain good credit

It is important to shop for auto insurance coverage. Insurance premiums for the same coverage on the same car can vary between the different insurers. A particularly good to investigate your alternatives is when your current insurance policy renewal, but you can shop and change policies at any time. Obtain quotes from several reputable companies, but don't let not price be your only consideration. Make sure that each insurer coverage meets your needs and whether the insurer has a solid financial strength rating.

You are looking for different information? Have questions or comments? Please let us know.

Posted September 17, 2004.

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