Insurance can cause a lot of financial stress for people, and the truth is that there are many things to keep in mind when it comes to it.
First of all the health care reform has brought some changes in the medical system, and this means that insurances will also change a little. Another type of insurance that people have to worry about is the car insurance. This type of insurance is also known as GAT, auto or motor insurance, and its main goal is to provide with financial protection in case of physical damage to your vehicle or yourself. Each region has different regulations regarding it, but most of them offer protection against unwanted collisions, theft or accidents.
If you are a car owner you are probably already aware that it is imperative to obtain car insurance before taking your beauty for a ride. In order to make everything easier for drivers, certain jurisdictions have experimented with “pay-as-you-drive” insurances which are paid with gasoline tax. Nevertheless, the standard insurance and complying with auto regulations should be your primary concerns. You should also keep a close eye on latest financial developments in the field in order to ensure that you are getting a correct deal. At the moment, average quote for annual car insurance has dropped by a 9.8pc fall. This means that most drivers can now benefit from reduced insurance costs.
You should also research SR22 insurance, which is not an insurance per-say, but something that might protect you from unwanted problems. For more information on the subject you can visit http://www.sr22insurance.net/. In order to protect yourself and your family, you should at least understand the basics of car insurance. Here are a few things you should know for your personal car, or in case you have a rental car.
Protect Your Personal Car with the Help of Car Insurance
There are countless of cases where people got ripped off after buying protection. This usually happens because they got insurance from an untrustworthy company, they did not know what is covered (and what not), or they simply didn't know how to negotiate the terms. What you should know is that car insurance can be purchased anywhere: either online (from over thousands of sites), or offline from an insurance agent. It should not come as a surprise that you can purchase insurance in so many ways. After all, there are probably millions of insurance companies in the world. But what makes a good insurance? First of all, car insurance is not a commodity, it is a necessity, and companies should know how to make drivers aware of this fact. On so many occasions people have said “Oh, this can't happen to me!”, but they ended up in an accident, and were unable to cover the costs. And things could get much worse!
So how should you buy car insurance, and how much should you buy?
- As we mentioned earlier, most states obligate people to purchase car insurance if they want to drive around freely on public roads. There is also a mandatory auto insurance law that needs a minimum liability of 15,000 dollars for any person involved in an accident, or a minimum of 30,000 dollars for all persons involved. This is seriously not much considering that you are protecting your life in the process.
- There are many types of coverage available at the moment, and each of them has distinct criteria that you should consider.
Coverage Types for Personal Car Insurance:
- Property Damage Liability is the type of coverage that takes care of the damage that your vehicle inflicts on public property. So if you hit a garage, or street lamp, or whatever, you don't have to worry. The minimum coverage is $5,000.
- Medical Payments: God forbid you ever get injured in a car accident, but if this happens, the insurance will pay for everything, including funeral expenses for passengers.
- Uninsured Motorist: As you probably already know, certain people don't find it important to have insurance. If you happen to knock such a person off the street, you can rest assured, because your company has got you covered. In the states, one of ten people doesn't have insurance, and this is actually quite alarming.
- Bodily Injury Liability: this covers medical and other expenses to those who suffer from accidents caused by you. It is the most important type of coverage, and it is usually mandatory in most states.
- Collision: When collisions happen because of you, the Collision coverage will cover costs to other cars and partakers.
These are only a few types of coverage, but there are actually many more that you can learn about. Another question you should answer is “What are you using your vehicle for?”. This is important because if you tell your insurance company that you are using your car to drive to work, and you are not, it is considered fraud. If an accident happens while on the road somewhere else, your insured could technically argue your stand and not be obligated to cover the costs. So do be honest!
Protect Your Rental Car with the Help of Car Insurance
In some cases, people drive rental cars. We urge you not to buy an over-the-counter insurance from the rental company selling the car. Many people have no idea what exactly it is they are signing, and if they ever have an accident, they might have to cover the costs themselves. Do you know what type of liability your own auto insurance policy provides? You should know if you ever want some piece of mind.
Standard coverage policies for third party cars are usually separate. You can either be protected with your credit card and your auto insurance policy, but if you get into an accident somewhere else, you can let your insured out of the loop. You should purchase a Premium Rental Car Protection policy, which is not very costly, and will protect you for the minimum cost required by law. There are no deductions, no escape doors, nothing. It is safe and efficient. You can also check with your agent and inquire about a Supplemental Liability protection if you think that accidents you might be involved in will include more than just a fence.