Tuesday, 21 May 2013

How Much Auto Insurance Do I Need

                                    An auto insurance policy can have different kinds of coverages.Your own insurance agent can provide you information on the type and amount of car insurance coverage which meet your
individual requirements and agree with the laws of your state. Here are the important types of coverage that your policy may includes.

Liability Coverage :-  
                         These policies help in covering liability and the expenses when you are at a fault in an accident. This money will be used in the treatment of those people you hit, but it is not going to cover treatment expenses of the people got hurt in your car. 
Bodily Injury Liability :-    
                           The minimum coverage for bodily injury varies from state to state. This policy covers the medical expenses of those people who got injured in an accident in which you are at fault. While you are looking for policies, you may often seen policies described as a 20/50 policy. In these figures, the minimum dollars amount stands for the amount payed for a single person's injuries and the maximum number for all the injuries sustained by all the passengers of the other car. 

Property Damage Liability :- 
                           This policy pays the amount for damage done to the other car if you are at fault in an accident. The minimum amount policy that you must carry varies from state to state. But the minimum is not near to be enough to save you in a serious accident. Now a days many of cars cost more then $50,000 so you could be easily be responsible for a considerably high repair bill if you hit someone's expensive car. But if you have a Personal Umbrella policy, then you will be covered for the excess expense, but for that you may carry more than the minimum to qualify for a Personal Umbrella Policy.    

Medical Expenses :- 
                          This claim covers the cost of medical treatment for you and your car passengers in the event of an accidents. The limit you choose under Medical Expenses Coverage is the maximum that will be paid for medical claims to each driver. So, if you go for a $3,000 Medical Expense Limit, then each passenger will have a coverage up to $3,000 for medical claims which result from an accident in your vehicle. 

Personal Injury Protection :- 
                          This protection coverage is required by the law in some states, which covers your medical costs and those of your passengers, no matter of who was at fault for the accident. The limits required are set by the state law. 

Collision Coverage :-  
                          This policy covers the cost of repair to your car after an accident. In this, you don't have to decide how much to buy,  because that depends on the vehicle you insure. But you have to decide whether to buy it and how large a deductible to take. Because the higher the deductible the lower your premium will become. This coverage is important to have, if a car is new and valuable, but less important as the value of the vehicle declines.  

Comprehensive Coverage :-  
                           This policy covers the cost of varied damages to your car which is not caused by a collision such as theft and fire. With collision coverage, you need to choose a deductible. Because the higher deductible you choose the lower your premium will be. Comprehensive coverage is normally sold with Collision coverage and both of them together often referred as Physical Damage Coverage.