Automobile insurance coverage
Many decisions need to be made when selecting the various options for automobile insurance coverage.
Some of the basic components of “full coverage” are the following:
- Liability coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles
- Physical damage coverage includes both collision, to pay for damage to your own vehichle, and comprehensive coverage, to pay for theft or other, non-accident related, damage to your vehicle, such as theft, weather conditions, vandalism or fire.
- Medical payments coverage to provide payment of medical expenses, regardless of fault, when the expenses are caused by an auto accident.
- Uninsured, and underinsured, driver coverage to pay for damages to your car in the event you are involved in an accident by a driver that does not have liabiity insurance, or inadequate liability coverage.
You can talk to your automobile insurance agent to help work on reduced premiums by considering, among other issues, some of the following:
- Choice of deductibles, or the amount you are willing to be responsible for in the event of a claim for collision or comprehensive coverage. In geenral, the higher the deductible, the lower your premium. You need to know if your leasing company or finance company dictates certain deductible levels.
- Availability of multi-car discounts by combining all automobile coverage as part of one policy.
- Discounts for combining other other types of insurance coverage, such as homeowners insurance, with the same company.
- The types and levels of insurance that should be maintained on an older car.
