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Do You Know Enough About Automobile Insurance?

Guest post by: Alston Balkcom

Article Overview: When making decisions about car insurance, we need to understand the different automobile insurance policies and their benefits. We can't just shop for insurance on the basis of price alone. It is critical that we know the answer to questions like:

Do You Know Enough About Automobile Insurance?

When making decisions about car insurance, we need to understand the different automobile insurance policies and their benefits. We can't just shop for insurance on the basis of price alone. It is critical that we know the answer to questions like:

What Is Comprehensive Car Insurance?

What Is A Car Insurance Deductible?

What Is Full Coverage Car Insurance?

What Is Auto Liability Insurance?

Comprehensive auto insurance is the part of your car insurance policy that pays when your auto is damaged by a falling object, damaged by fire, stolen or vandalized. The cost of a broken window is also covered under the comprehensive section of a personal auto insurance policy. Comprehensive coverage is also called "other than collision" coverage.

The absence of "comp" coverage does not affect what your insurance company will pay to others you might get into an auto accident with. Therefore it is optional unless your car is leased or has a loan against it. If your auto is leased or financed, the lessor or lender will probably mandate that you maintain comprehensive coverage on your automobile.

A automobile insurance deductible applies to the comprehensive part of your policy and the collision section of your policy. Both of these sections of your auto insurance policy are optional. The deductible amounts for each can be different. Your deductible reduces the amount your insurance company will pay to repair or replace your automobile. If you have $3,000 worth of body work done on your auto due to a covered accident and have a $500 deductible, your insurance company will pay you $2500.

The higher your deductible is, the lower your premium is likely to be.

Full coverage automobile insurance is a auto insurance policy that includes not only the mandatory liability section, but also the optional comprehensive and collision coverages. These coverages are considered physical damage coverage. Chances are you will need to have full coverage if you do not own your car outright. Your lender or leasing company will likely make you sign a contract that forces you to have full coverage.

One way to pay less for your automobile insurance policy is to increase your deductible on your comprehensive and or collision coverages. This means that you will be more at risk, however on an older automobile, the risk might be manageable and eliminating the physical damage coverage may be a good idea.

Liability insurance for your automobile is the part of your policy that can pay the other driver if you are considered to be at fault for an accident. This coverage, or proof of financial responsibility is mandated in every state of the US. Your deductible never applies to this coverage.

Liability insurance is mandatory, but the minimum limits may not be enough to give you enough coverage if you have an accident that causes a lot of damage. Be sure that you not only understand how liability insurance works but that you also get enough coverage.

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Article Tags: absence, auto accident, auto insurance policy, auto liability insurance, automobile insurance, car insurance policy, collision coverage, collision coverages, comprehensive car insurance, deductible amounts, full coverage, insurance, insurance company, insurance policies, lessor, liability section, making decisions, nbsp, personal auto insurance
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