This article isn’t just for those who are looking to get auto insurance. It’s also for anyone who has ever paid for auto insurance. You should now have an understanding of the different types of auto insurance coverages. Based on your specific needs, you can add or remove coverages from your policy.
Do you not remember hearing your parents tell you how costly auto insurance was as you neared the legal driving age? This is likely to be the same thing you said to your kids if they are driving or soon will be. Many of us have felt terror about the coverage that insurance companies might not provide. What would happen if there was an accident? You may not have known that there are subtle provisions that can save you a lot of money, if you really need them.
Knowing the basics of your auto insurance policy is a great help. If you are found to be at fault, the bodily injury or property limits will make it your LIABILITY to the other motorist. This coverage does not cover you. We all know collision coverage covers your car in the event of damage.
You have chosen to pay your own deductible. Comprehensive auto insurance covers the damage to your vehicle while you’re not driving it. What about medical payments? Only your medical bills will be paid by the auto insurance company.
If you are hurt. It also covers injuries that occur near your car or on the way to your home.
Personal Injury Protection (PIP) is a program that pays for medical bills in many states. It also covers the “little” things like hiring someone to clean your house, cook for you, or do other chores.
Usually, they do, but you can’t because of an accident. You can buy BOTH PIP and Medical Payments in some states on the same auto policy.
Who will pay for your personal items in your car? From personal experience, and speaking with my insurance company recently, I can confirm that the auto insurance company will not pay for personal items in your car. Except for an accessory or item that is only intended to be used in your vehicle, an item cannot be considered part of your auto insurance policy.
For reimbursement, you’ll need to contact your homeowner’s insurance policy. I strongly advise that you DO NOT call your homeowner’s insurer unless you are certain that the loss exceeds your deductible. Sometimes it feels like insurance companies are checking off a long list.
It twice, and then grab as much as you can from your paycheck.
It is important to understand what you won’t get from your auto insurance policy. You can rent a car while your vehicle is being repaired after an accident. This is true, but only if your policy includes ‘Rental reimbursement’. You won’t be able to rent a car if you don’t have this coverage. This is something that a good insurance agent will tell you.
Of course, a telephone operator may not be able to tell you!
Cities are increasingly enacting mandatory towing laws. You will be towable if you are in high-traffic areas. In most cities, you’ll be charged. Who pays? Your auto insurance company will pay if you have selected to include ‘towing and labour’ coverage. You will need to pay the money otherwise. AAA is what I have. AAA offers free towing up to a certain distance, usually to the nearest service station.
Let’s face facts. Auto insurance is like exercising. It’s not easy, but it is necessary. If you don’t do enough research, you might be charged a lower rate than you should have to in order to make sure you are fully covered. Make sure you understand what you’re buying. Compare your options and consider what you would do without this auto insurance policy. Pray that you never need to use your insurance again!
