Have you ever read through your auto insurance policy? Did you fall asleep? It is not the funnest thing to do since it can be filled with a bunch of insurance jargon. Figuring out what is what can be a bit challenging. If your car insurance confuses you here are a few explanations to help figure out what your car insurance policy is all about.
There are many different types of auto insurance. First, lets look at liability insurance. Property damage liability and bodily injury liability are two of the most important types that you need to know about. Property damage insurance will come in when you get into an car crash and damage the other vehicle or other type of real property. Your state requires a minimum amount of this type of insurance. You can go with the minimum amounts but if you can afford it you probably want to get more. Imagine slamming into a Ferrari.
Bodily liability insurance will assist with medical and death expenses caused by you as a result of an accident. If you are the party at-fault then this insurance will cover your passengers as well. Bodily liability will also provide attorneys fees in the event the other party files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. Again, your state will determine the minimum amount of bodily injury liability insurance that you need.
Property damage liability will cover you if you damage another person’s property. This could be their vehicle, houses, fence, garden or anything else that you might damage. This insurance will also cover legal costs if you are sued by someone else. You should consider buying more than the minimum amounts that your state requires.
Collision insurance coverage will coverage damage to your vehicle when you hit, get hit another vehicle or other type of real property. This coverage pays to fix your car minus your deductible. You deductible usually runs $500 to $1,000. The cost of your collision insurance will include the type of car you have, the value and how hard your car is to fix.
Comprehensive insurance will pay when your vehicle is damaged by something other than a car crash. A few examples include fire, theft, falling tree or other similar situation.
These are the major types of insurance coverage. It is important to understand them and alter them if needed. Insurance is one of those things that you kind of hate to pay for but those few times you need it, it sure is nice to have.
Slade Tanner – Tampa car insurance – Lower Your Tampa Auto Insurance
