Know Your Auto Insurance Policy
Nothing can be more frustrating than searching for auto insurance, alas, if you have a car, you are required to have insurance for it. Sorting through the technical jargon can be confusing, and too many people wait until they are filing a claim, learning the hard way what kind of auto insurance coverage they have. While you do not have to be an expert on car insurance, there are a few things everyone should know about the policy they have.
Know your auto insurance deductible. This is the amount of money you are required to pay if you file a claim. Often times, if you have a lower deductible, your monthly payment is slightly higher. Having the mindset that you won’t ever need to file a claim and obtaining a policy with an insanely high deductible to get the lowest monthly payments possible can be a burden when something does happen. It is best to achieve a balance with finding a deductible that won’t deplete your bank account if you need to use it and still achieving affordable monthly payments. No matter what your deductible is, you should know how much it is.
Next, not all insurance plans are the same; know what your plan covers. The terms “full coverage insurance” and “liability” often are thrown around however, your plan will likely not say full coverage. The most common types of auto insurance are bodily injury liability, property damage liability, comprehensive coverage, personal injury protection coverage and collision coverage. In every state is required to have auto insurance except New Hampshire, and typically the liability coverage they require are property damage and bodily injury. This guarantees that if you injure someone while driving or their property, the cost will be covered. However, this type of car insurance does not cover any damage to yourself, your car and property. Collision insurance covers the damage to your car in case of a collision and comprehensive covers the cost of any other damage and theft. Collision and comprehensive combined with personal injury protection, which covers your own injuries, are most likely what people mean when they discuss full coverage.
While it seems like you might need a GPS to navigate through your auto insurance policy, you should be all right if you know what your coverage is and what you have to pay out of pocket. No one wants an unexpected surprise when they go to file a claim.