Insurance

An auto insurance policy is many small policies packaged together to provide overall coverage.  What type of policy you should have depends a great deal on where you live, what you drive, and your life in general.

The most common types of auto coverage include liability, medical or personal injury protection, collision, comprehensive, uninsured motorist, and underinsured motorist.  In addition some drivers will also add on towing coverage and daily rental reimbursement.  So what does each policy cover?  Read on.

Liability is the most important coverage on your auto policy.  There are 2 sections to the liability policy.  One is bodily injury, while the other is property damage. Auto liability coverage cover injury costs when a person or persons is injured as a result of a motor vehicle accident that you are found at fault for.  It will cover medical treatments as well as financial loss.  The property portion covers damages to property such as a house, pole, or garage. 

Medical coverage pays for the treatment of the any injuries you receive as a result of a motor vehicle accident, regardless of who was at fault in the accident.  Depending on the type of coverage you purchased it may also include coverage for other economic costs, like lost wages or funeral expenses.

Collision and comprehensive are the next most important parts to your policy, although both are optional.  This part of the policy covers damage to your car no matter who is at fault.  Collision covers damage caused by a collision where as comprehensive covers damage caused by almost anything else.  Occurrences such as vandalism, theft or natural disaster are covered by this portion of the policy.

Uninsured and Underinsured motorist coverage is also an optional insurance coverage. Underinsured coverage will help pay your bills if you're hit by a driver who does not carry enough liability insurance.  Uninsured coverage has the same benefit for you but covers accidents where the other driver is at fault and carries no insurance.

Endorsement is the term used for the balance of optional policies available.  This includes coverage for such things as a rental vehicle, towing, and roadside assistance.

Here are some insurance statistics you should know.  Did you know that the average annual premium for American drivers is $786.00.  This varies from a low of $558 in Iowa to a high of $1146 for Drivers in New Jersey and that the average cost of a disabling injury claim from an auto accident is $35,000.  Did you know that the average cost of an auto that results in one death is over a million dollars.

So even though auto insurance is expensive, it doesn’t cost anywhere near what we would have to pay out of pocket if we were involved in a serious accident.  You can see why it’s a wise decision to carry proper auto insurance. 

That doesn’t mean just keep paying that premium you’ve always been quoted.  With free online insurance quotes available at your finger tips you can quickly find the best rates available.  Once you’ve found the best rates it’s as easy as a click of the mouse to buy. 

The time to start shopping for auto insurance is now!  Find Low Cost Insurance in 15 minutes or less!