Auto Insurance: The Basics

Is auto insurance a brave new world to you? Are you bewildered by the array of options to choose from? Its not all that complicated. Just add a few more terms to your vocabulary:
The two most important kinds of auto insurance are Property Damage Liability and Bodily Injury Liability. If you cause a car accident, Bodily Injury Liability pays for any injuries you cause the other people involved, and Property Damage Liability pays for any property damage you caused. In this era of skyrocketing medical bills, it is important to have sufficient Bodily Injury Liability. And when cars frequently cost $25,000 or more and roadside property can be even more expensive, having enough Property Damage Liability insurance is absolutely essential to protecting your personal financial assets. Many states have a legal minimum, but dont settle for the bare minimum if you can afford more. Extra coverage can cost surprisingly little.
Collision coverage covers damage to your own car when your car is in an accident, whether or not you were at fault. The larger the deductible you choose, the less your collision coverage costs will be.
Comprehensive auto insurance covers damage to your car from events other than collisions. Theft, vandalism, storm damage, damage from hitting deer, and so forth are covered. Window glass, a frequently broken item that can be expensive to replace, is sometimes covered by comprehensive insurance, but not always. Read your policy thoroughly, and consider getting extra insurance to cover glass if your comprehensive insurance does not cover it.
These are the essential and most common types of auto insurance. There is also a wide range of types that are less common, such as Uninsured Motorist Property Damage insurance. This type of insurance is uncommon in states where all drivers are required to have auto insurance, such as Massachusetts, and more common in states where auto insurance is not mandatory. Before you buy Uninsured Motorist Property Damage insurance, determine whether a noteworthy percent of drivers in your region are uninsured. You may find that buying this kind of insurance is pointless, or it may be one of the best investments you can make.
When in doubt, remember that you can always change your auto insurance coverage after you sign a contract and decide you would be better off with a different level of coverage. Removing coverage may be harder than adding it, but most companies will allow you to reduce your coverage as long as you are above the legally required minimum amount of coverage. So do not assume you are fixed into a certain level of coverage after you have received your policy; think about how much you really need, and adjust your auto insurance to suit your best interests if new information makes you change your mind. Auto insurance may be expensive, but it is priceless when you realize how important it is to your and the other drivers futures.

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