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Purchasing automobile insurance can be very intimidating since you are not familiar with a lot of the terms the agent will use. As a result of this, you should do your homework before asking for quotes from at least three different insurance companies. All of the insurance companies will provide the basic coverages but they may also offer some optional coverages that the individual company provides. For example, some companies offer an accident forgiveness waiver option. This means that if you have an accident, they will not apply a surcharge to your policy. Other companies might provide a safe driving bonus check back to you if you do not have an accident in a number of years.
Now, we will learn what each one of the basic coverage will cover in the event of an accident. The first coverage that we will discuss is the Collision Coverage. This coverage will pay for the damages to your car; this means you can get your car repaired if it is damaged in an accident.
The next coverage you will want to purchase is called Property Damage Coverage; this coverage will pay for the damages to the other person’s property that was involved in the accident. The damaged items could be another vehicle or a structure such as a fence, garage or house if it is hit by your car.
You will also want to purchase Bodily Injury Coverage, this coverages will pay for injuries to people that were in the accident caused by you. A lot of states have minimum amount of Bodily Injury Coverage limits that must be purchased in order to protect you and the people that you may hurt. You should ask the Insurance Agent about the minimum limits that are required in your state. If you can afford it, you should purchase more than the minimum limit to make sure you are adequately covered.
Medical Payment Coverage is another coverage that you will want to purchase. This coverage will pay for the medical expenses and loss wages for the people that are injured in an accident caused by you. As you know, medical costs continue to rise so make sure you purchase enough coverage. Your Insurance Agent can recommend an acceptable amount for you when you are getting a quote.
You will also need to purchase Comprehensive Coverage, this coverage will pay for damages that are resulting from a storm which would include wind and hail damages, damages from vandalism is also covered under this coverage. The coverage does have a deductible that will be applied to it.
So, let’s talk about deductibles, you want to get the right deductible for yourself. The deductible is the amount of money that you will have to come up with when you have an accident, so you want to make sure you know how much you can afford to come up with if you have a claim. The higher the deductible, the lower the insurance premium, however, you need to make sure you can come up with the money when needed. Today, a lot of people are opting to take higher deductible so that they can get the insurance premium as low as possible. This is one area where you need to be honest with yourself and determine how much money you can come up with at the time of an accident. If you cannot come up with a lot of money then you should take a lower deductible.
When you go to purchase insurance, make sure you ask the Insurance Agent about al of the basic coverages discussed above and ask them about the optional coverages they have to offer. Again, you should get at least three quotes to make sure you are selecting the best prices for your insurance needs. Good Luck!