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Auto Insurance Information Everyone Should Know

By Compuquotes Team on March 27th, 2008
Auto Insurance

Americans use their cars for everything from going to and from work to getting groceries from the local store. Accidents happen and always will whether you are changing the CD and rear end someone, or are parked in your driveway and a tree falls onto your truck. Everyone is susceptible to an auto related accident or incidents.

Auto insurance will protect you against the financial risk that is associated with auto related personal injuries and property damage caused by theft, auto accidents, vandalism, or natural disasters. All states in America require you to have at least the minimum amount of liability coverage, in some states other types of auto insurance coverage may also be required so check out your local DMV requirements.

If you have took out a loan to get the funding for your vehicle then it is likely that you will be required to have full coverage on the vehicle until it is almost paid off. State law requires you to have the minimum amount of liability coverage which includes bodily injury liability, property damage liability, and uninsured motorists/underinsured motorist coverage.

Bodily injury is designed to protect your assets if you are held liable for an auto accident where others were either injured or killed. The property damage liability will cover the repair or replacement costs of the autos or other property of other people. The uninsured or underinsured motorist coverage insures you against any losses that are causes by other drivers with little or auto insurance. This is unless you live in a no fault sate where you own insurance covers your on damages regardless of fault.

It is common to require more than the state minimum amount of liability to adequately protect yourself.

Collision, comprehensive, and medical payments or personal injury protection are all generally optional in most states, it is usually financially wise to purchase them unless you are able to fork out the money for damages yourself.

The collision coverage option pays for the repair or replacement costs of your car is it is damaged or totaled in an accident. The comprehensive coverage insures your car against any damages that are caused by something other than an accident that is still covered such as theft, vandalism, fire, and flood. The medical payments or personal injury protection will cover the various medical expenses that aren't covered by your personal health insurance provider or your passengers' health insurance.

When choosing an auto insurance company is sure to compare each company's deductibles, exclusions, and costs above limitations. A deductible is the amount you have agreed to pay out of your pocket before your insurance will cover your damages. The exclusions are events or situations that you policy specifically omits from coverage such as property damage or personal injury that you intentionally cause to other or damage to your own car due to mechanical failure.

Costs above limitations are any expenses for which you are help responsible that excess the caps on the dollar amounts of coverage you are entitled to receive under your policy.

See average annual insurance rates for more than 2,000 vehicles

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