Car Insurance Information

Car Insurance Information

Over the years, the insurance industry has developed their own terms and jargon that is not easy to understand. This car insurance information page will attempt to simplify and explain the major aspects of car insurance so you can make the right decision.

Just like with law, to understand it well, it’s best to seek help of a professional and make sure you are getting what you think you are getting when buying a car insurance policy, in this case, you want an experienced car insurance agent.

In most states, liability car insurance is mandatory so before you embark on a car insurance search it is best to find out what the laws are in the state you’re in. Car insurance is basically a safety net that protects your car, your health and the other parties involved in an even of a car accident.

In the United States, there is an accident happening every 18 seconds and although we all hope it doesn’t happen to us, accidents do happen even to military personnel, so it is best to be prepared. Car insurance is one thing that we all pay monthly or semi-annually and hope and pray we never have to use it. Visit our specific state pages to find more information: Texas car insurance.

Car insurance works very simply, you pay a premium fee monthly, every six months or annually and the insurance company agrees to pay for any damages that are covered in the agreement in the event of an accident. They will either pay to repair the property or replace it all together. The key here is to make sure that your policy has enough coverage, which will also reflect in the premium you will be paying.

All these buzz words may have you confused by now but like I said, they’ve developed a language of their own.

The main three words you will hear a lot are:  policy, premium and deductible.

You need to know what they mean to understand their insurance-speak.

Policy – is just a name for the agreement that the insurance company and you have entered. It outlines the terms and coverage details that the insurance company is responsible for in case of an accident and the fees you will be paying to keep this coverage valid.

Premium – is the fee you will be paying, monthly or whatever terms are agreed upon. Most insurance policies are setup for 6 months, so some will pay their premium in whole once every six months. When the premium is too high, the insurance company will break the payment up into monthly fees, in which case you will pay an additional financing fee.

Deductible – is the amount of money you are responsible for to pay for the damages. Each policy allows you to agree on an amount of money you will take care of your self in the event of an accident. Doing this keeps the direct car insurance company out of the loop if you have a minor fender-bender, so they only come into play if you have an major accident with damages that exceed your deductible. The amount of deductible will also have a major affect on your premium amount. The more money you are willing to be responsible for the less you will pay in premiums.

You will also find out that your insurance policy will have several parts to it. Each of these parts are adjustable for more or less coverage. Gain knowledge about these parts so you can be informed when buying.

Bodily Injury Liability Insurance

This part is mandatory in most states because it covers your liability in case of you inflict injuries to another person. The liability car insurance will pay for that person’s hospital bills. With every policy, you can decide how high of a dollar amount you want to be covered for. There are minimum amounts that you must have and they are different in every state so make sure you know your state’s car insurance requirements.

Property Damage Insurance

Most states will also make this part mandatory. It covers the other property or cars damaged in an accident. If you damage other people’s property, you will have to pay for it out of your pocket if you do not have insurance. You will be sued and will have to do it one way or another, so having insurance that protects you from having to go through that is a good idea. Like the above, you can adjust how much you want to be insured for, as long as you are above the state required minimum.

Collision Insurance

Having to live through an accident is bad enough, then having to deal with your broken car is another headache. Collision insurance will pay to repair or replace your car in case of an accident. This coverage will pay for your car no matter if it was your fault or not so it is nice to have to make sure you always have your car in working condition and not have to deal with major repairs that are caused by a collision. Have a look at the eCar insurance page.

Comprehensive Insurance

It is nice to be completely secure and have peace of mind. Comprehensive insurance will provide this peace of mind for you by protecting you from non-collision damages caused to your car. In the event of a natural disaster, vandalism, theft or something else, they will repair or replace your vehicle. This is an insurance that a car dealer will require you to have on a financed car. Student car insurance is a bit different as they are riskier to insure.

Uninsured & Underinsured Motorist Insurance

In case your car gets damaged by another person who does not have insurance, uninsured and underinsured motorist insurance will pay for the repair of your car and hospital bills of anyone inside your car up to the amount of coverage you select when buying the policy. This insurance is good to have if you only have liability insurance that does not cover you in these situations.

Young driver car insurance

Teenagers can get insurance but slightly different rules apply as they can be harder to insure. Have a look at our articles for car insurance at 16 years old, 18 years old and 19 years old. Here is our 21 year old car insurance page.

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