Auto Insurance 101 Explained

Word Count: 513

Summary: Auto insurance can be confusing for most consumers; there are so many different types of insurance and it can be difficult to determine the type of coverage you're required to carry versus the types of coverage that you really should carry in order to protect yourself but that are not required.

Keywords: auto, car, motor, insurance, liability, premium, cost, payments, cover, damage, claim

Article Body: Auto insurance can be confusing for most consumers; there are so many different types of insurance and it can be difficult to determine the type of coverage you're required to carry versus the types of coverage that you really should carry in order to protect yourself but that are not required.

When considering how much car insurance you should have, it is best to do some research and find out what type of insurance is required by the state in which you reside. Not all states require the same levels of insurance. Some states require more types of coverage than others and states also vary in terms of the amount of coverage that is required. So, be sure you know exactly what the minimums are in the state where you live.

You should also understand what is covered by the different types of insurance in order to understand whether you need insurance coverage above and beyond the minimum required by your state of residence.

Bodily injury liability covers injuries that you cause to someone else while driving your vehicle. Generally the rule of thumb for this type of coverage is to purchase more than is required by your state minimums in order to protect your private assets from a law suit in the event that you injure someone.

Medical payments or personal injury protection, commonly known as PIP covers the treatment of injuries for the driver and the passengers of the vehicle. Depending on the level of coverage, this type of policy will compensate lost wages as well as medical payments.

Collision covers any damage that occurs to your vehicle in the event of an accident, even if it is your fault. Of course, a deductible will apply. Your lender will generally require this type of coverage while you still owe on the vehicle.

Comprehensive coverage is for the loss of your vehicle due to damage by something other than a collision such as theft, fire, natural disaster, vandalism, etc. Again, your lender will probably require this coverage for a financed vehicle. Once your loan is paid off, it's up to you whether you want to continue carrying comprehensive and collision coverage.

Uninsured and underinsured motorist coverage can come in handy in the event that you are either involved in a hit and run or if you are hit by someone who does not have insurance or who is underinsured.

When considering how much insurance to take out, start with the amount that is required at a minimum by your state and then consider whether you're required to take out any additional coverage due to lender requirements. Remember that while we all hope we won't have a need for insurance, in the event that we do, it can be a financial lifesaver.

Finally, don't forget to consider your options regarding deductibles. Raising your deductible can help you lower your premiums and that can make taking out additional insurance coverage more affordable. Just be sure you can reasonably afford the deductible in the event you need to use it.

Risk Strategies Company Acquires UPA Insurance Brokers

BOSTON, MA-- - Risk Strategies Company , a national insurance brokerage and risk management firm headquartered in Boston, today announced that it has acquired Millbrae, Calif.-based UPA Insurance Brokers, ...

UPA Insurance Brokers in Northern California Acquired by Risk Strategies

Millbrae, Calif.-based UPA Insurance Brokers has been acquired by Risk Strategies Co., a national insurance brokerage and risk management firm headquartered in Boston. The acquisition was announced on Wednesday. Terms of the deal, which closed on December 31, were not …

Motor Trade Insurance Brokers Comment on November 4.2% Dip in New Car Sales

KENT, UNITED KINGDOM-- - eQuoteDirect have examined new car sales figures in the UK and commented on the effect trading may have on the need for quality motor trade insurance.The demand for new cars dipped ...

Efinancial Wholesale Holds Sales Contest Giving Life Insurance Brokers the Opportunity to Win a Dream Vacation

Efinancial Wholesale, a leading online life insurance wholesaler, is proud to announce the launch of the First Quarter-2012 Efinancial Sales Incentive. The contest gives Efinancial in-house life insurance agents and individual producers the opportunity to win one of two dream vacations.Bellevue, Wash. (PRWEB) February 01, 2012 Efinancial Wholesale, a leading online life insurance brokerage, is ...

Heffernan Orange County Branch Hires Karen Albanese, Senior Vice President, Benefits

ORANGE COUNTY, Calif., Jan. 30, 2012 /PRNewswire/ -- Heffernan Insurance Brokers, one of the largest full-service, independent insurance brokerage firms in the United States, recently hired Karen Albanese ...

National insurance broker Willis consolidates Miami hub

By Scott Blake One of the nation's largest insurance brokers has moved its South Florida office to Brickell Avenue. New York-based Willis Group Holdings has moved to 19,000 square feet on the 16th floor at 1450 Brickell Ave.

Disputed Shift by Insurance Brokers Entangles Contractor Clients

Last June’s departure of key executives and dozens of staff from Aon to Alliant has entangled Turner and other major contractors in the dispute.