By Evan Vitale
It seems we are constantly bombarded by television and radio commercials; newspaper ads and daily junk mail offering us the best automobile insurance at affordable rates.
“In 15 minutes or less, you can save more on your auto insurance,” claims one such automobile insurance company.
As we try to wade through the mud of lower rates and insurance savings, every auto owner is required to carry minimum levels of insurance in order to protect occupants, damages, theft, etc.
Usually the minimum required coverage comes in the form of liability insurance. This means your insurance company would cover the other party if you are involved in an accident that you caused. The key phrase to remember here is “other party” and not you or the occupants of your car.
If you want more than the minimum (and most do), you can add:
- Collision (which covers your own property payments if the accident is your fault).
- Medical (which covers your own medical payments if the accident is your fault).
- Uninsured Motorist (which covers your medical and property payments if the accident is the other party’s fault and they are uninsured).
Each coverage type has two types of coverage limits which relate to (a) the maximum amount covered per accident and (b) the maximum amount covered per person (per accident).
In addition, you may also want to consider purchasing coverage in case you encounter a non-accident vehicle damage or loss due to theft, fire or something else.
The term “deductible” is used a lot when it comes to all kinds of insurance. The deductible is the amount that you have to pay first before the insurance kicks in. If you have a low deductible, then your premium payments will be higher than if you have a high deductible.
Check with family and friends when you start looking for better insurance rates. Also, you might be considered for some discounts for having a good driving record or by belonging to a certain professional organization. Some group memberships offer special rates on automobile insurance.