Deductibles
This is the amount you pay to get your car fixed when you are in an accident and it is your fault. If it is not your fault then other persons' insurance pays for your property and medical expenses.
These coverages are collision (when you hit something, tree, curb, rock on road, car, bus...) and
comprehension (when something hits you, animals, deer, rocks that hit your windshield) the most common claim filed under comprehension is to replace broken windshields. These coverages are not requied by law but if you have loan against the vehicle, then your bank will insist you provide them.
Secret- Collision is really expensive but you don't save as much as you would think by having a $500 vs a $250 deductible, call your company to get the quote difference between them. Usually, the saving are not that great but it is a big difference to pay $250 rather than $500 to get your car fixed. So call and check.
Same advice for comprehensive. Check the price savings between a $100 and a $250 deductible.
If you have let your insurance lapse and you still owe money they your finance company will take action. However, DO NOT LET THE BANK OR FINANCE COMPANY TACK ON INSURANCE Coverage (called the lien holder).
If your the bank sends you a letter that if you don't provide insurance they will, don't waste your money. Buy your own policy because (usually) the bank will only cover your car with collision and comprehesive not liabilty and they will charge you an outrageous price too.
Remember the law only requires liability.
Sunday, October 11, 2009
General Car Insurance Terms and secrets
It's easier to understand if you are getting a good deal if you know that you are comparing apples to apples when shopping around for car insurance.
First liability.
Here are some common insurance terms and what they mean.
The first is your liability the stuff required by law. It will have three numbers usually in increments of 25 representing thousands of dollars.
25/50/25 The first number (25) is the amount of money your car insurance company will pay the other person if the accident is your fault.
$25, 000 per person, the second number is the total amount per accident or $50,000. These are medical bill limits. The third number is property damage. Your insurance company will pay $25, 000 for the property you damage.
You can change the last number to be higher so 25/50/50. The next level of coverage is 50/100/50.
Make sure the quote you are given is based on the same number you already pay for.
If you already are paying for the 50/100/50 and you don't have many assessts you can always call and ask for a quote from your current insurance carrier how much that will reduce your premium.
A good insurance office will help you understand and evaluate your assets and risks when lowering or raising your coverage. If they don't then switch. You can switch agents and stay with the same company. Agents of course do not like to lose customers but if you insist they don't have much choice.
Medical is usually next. This is not required by law. Talk to your agent about the advantages and disadvantages of buying medical.
This usually starts at $10,000 and this applies to you and your riders does not matter who is at fault. Each passenger would be covered up to $10,000 per person.
Next up Deductibles
First liability.
Here are some common insurance terms and what they mean.
The first is your liability the stuff required by law. It will have three numbers usually in increments of 25 representing thousands of dollars.
25/50/25 The first number (25) is the amount of money your car insurance company will pay the other person if the accident is your fault.
$25, 000 per person, the second number is the total amount per accident or $50,000. These are medical bill limits. The third number is property damage. Your insurance company will pay $25, 000 for the property you damage.
You can change the last number to be higher so 25/50/50. The next level of coverage is 50/100/50.
Make sure the quote you are given is based on the same number you already pay for.
If you already are paying for the 50/100/50 and you don't have many assessts you can always call and ask for a quote from your current insurance carrier how much that will reduce your premium.
A good insurance office will help you understand and evaluate your assets and risks when lowering or raising your coverage. If they don't then switch. You can switch agents and stay with the same company. Agents of course do not like to lose customers but if you insist they don't have much choice.
Medical is usually next. This is not required by law. Talk to your agent about the advantages and disadvantages of buying medical.
This usually starts at $10,000 and this applies to you and your riders does not matter who is at fault. Each passenger would be covered up to $10,000 per person.
Next up Deductibles
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