When it comes down to a discussion about insurance; either health, dental, vision or life is just about always at the front of the mind. There are more than enough affordable health care advertisements on both the radio and television than there were 15 years ago, but what about auto insurance? It seems as though it’s not a big topic anymore even though it’s something everyone with a motor vehicle would benefit from having. If you have kids who are currently learning to drive, will be soon or already behind the wheel. Ask yourself, wouldn’t it be easier to sleep at night without worrying about how you’re going to pay for that dent on the passenger side door from when your kid was attempting to reverse park next to another car in your driveway? Regardless of what type of car you drive,it’s always safer to be covered and protected in case you’re on the receiving end of another person’s mistake.
There are a few ways to get insurance, you can go into the office, call immediately on the phone or you can price check online first. Regardless of which option you choose to take, there is a point you will get to that breaks down some pretty important information with terms and values that can be a bit confusing. If you’re looking for some good, but cheap auto insurance, then you’re going to want to understand what these terms mean.
We’ll start with deductible, which is the amount in damages that you will have to pay before the insurance company steps in and pays the rest. SAy there was an accident and the cost in damage repairs is $2,500. If your deductible is $500, then that is what you would need to pay before the insurance covers the other $2,000. Deductibles are paid per incidental situation. Now if your price of repairs does not exceed your deductible, then you will have to pay the full amount.
Next, both car insurance premium and coverage limit. These two terms coincide with each other. Your coverage limit is the maximum amount that your insurance policy will pay out for each item you have coverage on. Your car insurance premium is the amount that you pay for your plan. So the more coverage you have the more you will pay. The premium also has other factors that determine how much you will pay such as age, age of vehicle, driving record and type of vehicle. So depending on how much coverage you decide to get along with having a pretty common, not so sporty vehicle, it is more than possible to get cheap auto insurance.
Now the term no-fault which is only in 12 states at the moment. This term means that your auto insurance will pay toward your medical claim up to a certain limit whether it’s your fault or not. On the opposite spectrum the other states that do not have the no- fault law, have the at-fault law, which means that someone has to be at fault, even if both drivers are equally the cause.
Finally, how to know how much insurance you really need varies from person to person ultimately, but there are a few more things to consider. When picking your coverage options, it would be a good idea to have at least $500,000 in property damage and bodily injury liability. You’d want to have collision insurance, personal injury protection, uninsured motorist and a higher deductible. These will mainly keep you from paying out a lot of money to others and the higher deductible will keep your monthly premium lower. You should always speak to a professional agent to help you make a proper decision and provide you with specific information based on your state requirements.