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Kenneth Sigler

Understanding the Essentials of Auto Insurance Coverage: What You Need to Know


Auto Insurance

Auto Insurance is many things and has many different arenas. Understanding some of the basics is critical to being able to know the importance of your auto insurance.

The first thing to understand is that auto insurance is a comprehensive grouping covering regular everyday vehicles, antique vehicles, commercial vehicles, watercraft, motorcycles, Alterain vehicles rated for street use, and recreational vehicles. With this wide array, you can see that not a single policy or company can cover everything easily.

The next thing to understand is the standard client versus a non-standard client. A standard client has an insurance history, no tickets, accidents, or other violations, and decent credit. A non-standard may have credit blemishes, lapses, accidents, tickets, and claims. A special group of carriers, as you see on TV saying they can insure you for $19 per month, are for a special nitch market and are meant to help get you to where you can move to a standard carrier more easily.

Next is Liability, and many states have a minimum, but this does not provide adequate coverage or protect you from a lawsuit when you are undercovered. A match on this is Uninsured motorist and under insured motorist helps when you meet someone who does not have enough coverage or has no coverage. Liability, remember, is to fix/replace the other person's vehicle or property, not yours.

Medical insurance covers medical expenses for passengers and other parties in the event of an accident.

Collision is subsequent and covers your vehicle in an accident.

Comprehensive coverage adds glass coverage and more to your repairs.

Towing only covers towing when broken down and when tire changes occur. A better option is roadside assistance, as more items are added to the coverage.

Rental is excellent but comprehensive, and collision may be needed to add this feature and provide a rental car in case your vehicle is down.

Extra equipment includes modifications like special rims, grills, toolboxes, rails, and racks.

To lower your cost, picking a higher deductible that you can cover is key. Also, driver's education, being a traditional student, the length of your driving history, how clean your record is, and the better your financial credit will all help you. The other way is to bundle multiple policies and vehicles together.

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