Automobile Insurance 101

There are many different kinds of auto insurance coverage available. While some are essential, some are not and you can save money by only paying for the insurance coverage required by your state. Many sites offer a resource center so that you can inform yourself about auto insurance. Being aware of the various kinds of auto insurance is the first step in making sure that you and your assets are protected, but that you’re not carrying more coverage than you really need. Common types of insurance coverage include:

Bodily Injury Liability - Pays your legal defense costs and claims against you if your car injures or kills someone. This protection covers you, family members living with you and others driving with your permission.

Property Damage Liability – Pays your legal defense costs and claims against you if your car damages someone else’s property. This coverage does not cover your property, including your auto.

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It can be quite of a confusing task to search for your car’s insurance plan. Most especially when you are clueless of any insurance and commercial knowledge. It can be a big help to look through the internet to learn some basic knowledge in car insurance policies and terms. This is very important in purchasing a plan because it will save you from all the trouble when you most need it. Here are some terms you should try to understand to help you start off with your search.

• Property Damage – If you happen to be the party fault in a traffic accident, and you have damaged the other party’s vehicle, this policy will be responsible for paying up for the other party’s car over all repair.
• Personal Injury – It will cover your own medical expenses at a certain price range, according to the term. Sometimes it also covers salary compensation for the time you spent out of work.
• Comprehensive Insurance – This is the most common and popular insurance policy. It specifically pays up every expense that might arise due to the accident. You have complete peace of mind.
• Bodily Injury – This will take care of the other driver ifever he gets hurt in the accident.
• Collision – This will cover only the vehicle damaged in the accident because of your mistake. It does not provide medical expense support.

It is good to know some of these terms so that you can opt for the best policy that will suit your needs.

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In car insurance as in any other form of insurance coverage, there exists what is commonly called as the doctrine of utmost good faith which forms as the founding principle for the execution of any insurance coverage. This doctrine accentuates the reciprocal faith that exists between the insurer and the insured. This doctrine is based on two principles; Duty of Disclosure and Representations and Warranty.

Duty of Disclosure simply states that the insured is obligated by law to disclose to the insurer any information that will have an influence on the issuance of an insurance contract. Representations and Warranty is a declaration executed by the insured that all information provided to the insurer are true and complete to the best of his knowledge and understanding.

By: MJ

Highway Loss Data Institute, or HLDI, is a non-profit organization which has dedicated itself to accumulating data on accidents by auto crashes such as deaths, injuries, and property damage as well as campaigning and helping reduce these accidents. Recently, they have compiled a list of auto vehicle ratings that are based on how much insurance companies shell out for losses during repairs and remakes.

Incidentally, HLDI is also very much supported by auto insurers as being a non-profit organization has allowed them, the companies, to benefit from the statistics and data that HLDI gathers up every year and compiles.

By: MJ

Let’s all be honest. Getting a car is really expensive nowadays! Nobody wants a wallet being drained of sizeable auto insurance premiums as well as having to pay monthly car payments. Don’t forget the rising fuel costs that are the trend right now, $110+ per gallon right now if I’m not mistaken. However, collision damage under accidents is one of the large things that insurers pay for. So, if the car you’re looking at has a very high loss under the collision coverage, insurers are likely to have to shell out a lot of money to repair the vehicle. As a result, you, the payer, are more likely to have to likewise pay more to insure more.