Auto Insurance
The laws and regulations regarding auto insurance vary from state to state; however, it is widely accepted that this insurance is a necessity for the use of any motor vehicle on public roads. There are various levels of cover available, and the cover you require will depend on your individual needs and circumstances. When assessing your auto insurance requirements, you should start by reviewing the financial loss you may incur, should your vehicle be damaged or involved in an accident. Aspects such as liability to third parties, the value of your vehicle and any medical costs you may incur from an incident, should all be considered.
Most importantly, cover for third party liability should always be obtained; this is referred to as liability coverage. If you were to be found at-fault in an accident, your financial liability to the third party could be far greater than your means with which to pay. The costs could range from paying for minor repairs to their vehicle, to paying ongoing medical bills for their injuries received in the accident. This coverage also covers third party property, including property of the state, which may be damaged by your vehicle in the event of an auto accident. Liability coverage should also cover court costs relating to third party liability claims.
If you own a vehicle, you may wish to cover any financial loss you may incur as a result of damage. Full coverage combines liability coverage with two further forms of cover, referred to as collision and comprehensive coverage. These auto insurance covers can also be purchased separately, if desired, so long as a vehicle finance lender has not imposed these insurance requirements as part of your agreement. Collision coverage provides cover for damage to or total loss of your vehicle due to a collision. Comprehensive coverage is put in place to cover damage to a vehicle, which is not incurred due to a collision. This damage can include fire, theft and attempted theft, impacts with animals and vandalism. Many insurance providers will also include 'Acts of God' within comprehensive coverage. Some events, which may fall in to this category are a hurricane, tornado, flood or hail shower.
Insurance deductibles, which are the amounts you are liable to pay in the event of a claim, vary depending on the insurer and the premium you are willing to pay. This is another important aspect to consider, when choosing the insurance you require. When obtaining insurance quotes, you should be sure to provide all information pertaining to your vehicle and its use, in order to obtain an accurate quotation for the level of cover you need. This information can include where the vehicle is kept overnight, prospective mileage you expect to travel during the term of the insurance, total value of the vehicle and any previous accidents or auto insurance claims you have had in the past. Failure to provide accurate and full information could result in a lack of desired coverage, or even cancellation of your policy. Similarly, failure to provide accurate information could result in you missing relevant discounts and, therefore, paying a higher premium than is necessary. The insurer, or broker obtaining quotations for you, should ask you to complete a quotation form asking for the relevant data, or ask you all necessary questions pertaining to the risk requiring coverage.
There are additional covers to think about when obtaining auto insurance; some may be included in full coverage, but some may need to be purchased as an addition. These covers include, but are not limited to vehicle rental, vehicle contents and personal injury. Be sure to discuss all of your needs and concerns with the insurer, prior to acceptance of an insurance offer. Your contract with the insurance company, under which you are liable to pay for cover, does not commence until you have formerly accepted the terms being offered.
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