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Learn the Basics about Auto Insurance?

Auto insurance protects you and your family against losses involving your vehicle. Usually an auto insurance policy is written for six months to a year. There are basically six different types of coverage included. Some of these coverages are required by law while others are optional, states requirements differ. These coverages include:

  1. Collision – covers damages to your car caused by a collision with another vehicle or object, or by a vehicle roll-over.
  2. Comprehensive – covers damages to your vehicle not involving a collision with another car (i.e. fire, explosions, theft, hitting an animal, cracked or shattered windshield).
  3. Bodily Injury Liability – covers injuries you and family members listed on the policy cause to someone else. Includes legal and funeral expenses.
  4. Property Damage Liability – covers damages your vehicle does to the property of others. Also includes legal costs.
  5. Medical Payments – covers necessary and reasonable medical expenses for you and your passengers. May include funeral expenses.
  6. Uninsured/Under Insured Motorists – covers injuries caused by a driver of an uninsured or insufficiently insured vehicle.

There are many factors that determine the cost of auto insurance for example, age of drivers; type of car; driving history; location. Auto insurance costs also depend on the amount and type of coverage you require. One way to lower your costs is to increase your deductible payment (amount you pay towards a claim before your insurance pays). Keep in mind that states have differing minimum coverage requirements. To ensure you are adequately covered consult with an agent who will assess your needs.

Last Modified: Sunday 21st February 2010

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