Car Insurance Policy
These days, buying a new car involves purchasing a car insurance policy as well. This policy is influenced by a series of factors that include the type of car you own and the insurance options you find necessary.
The car insurance policy can be considered to be a package including more than one type of insurance coverage. Some example would be the liability coverage (that is usually mandatory in almost every state), collision, comprehensive insurance (the kind of insurance that covers the damages caused by other sources than an accident; such sources could be fire, vandalism, theft or flood), medical coverage, uninsured/underinsured motorist insurance and rental reimbursement (that will pay for the damages suffered by the rental car as a result of an accident). Now you can see why is important to take advantage of policies including one or more types of coverage, according to your needs.
When I say needs, I first of all refer to the minimum levels of insurance required by the state you live in. Usually, responsible drivers go for a car insurance policy that covers them for a larger variety of problems than the one stated in the law. You should also ask yourself a few questions in order to decide what optional features you want your car insurance policy to include. Do you want coverage for a possible rental car as well? Are you interested in an extended warranty for the parts of your car in order to not have to pay for your car repairs? Another good idea if you’re car is leased and you still have some payments to make is to purchase gap insurance as well.
The value of your car can be another indicator that will help you choose some types of coverage. For example, if your car is worth only $2,000, getting comprehensive and collision insurance is an unnecessary expense. On the other hand, if your car’s price tag is around $50,000, an extra $200 paid annually might save you a lot of trouble. But that’s not all. You should also be aware of the types of insurances you already have purchased, because there are situations in which your health insurance or your homeowners insurance might be able to pay for bills associated with a car accident. For example, your comprehensive health insurance will reduce the Personal Injury Protection that is part of your mandatory car insurance policy (in some states) to a minimum level.
Deductibles are another important aspect of any car insurance policy. Insurance companies don’t take car of all the expenses involved an accident. Usually you are required to cover part of the bills. That amount is established in your policy and can vary from $100 to $1000. For example, if the amount of that deductible is $250 and the damages caused by an accident are evaluated at $2,250, the insurance company will pay only $2,000. So, you should be careful when choosing the deductible’s value, because you will have to pay that value each and every time you are involved in a car accident. You should also take into consideration that a higher deductible will mean a lower rate, but that may result in some expensive bills covered out of your pocket.
These are only some guidelines intended to help you find that car insurance policy you can afford and that will help you pay for damages in case of unexpected events. The levels of coverage, the rates you pay are all up to you and as long as you know what you are looking for you’re good to go.
Post tags: Tags: car insurance, car insurance policy, gap insurance, liability coverage