If you're looking to get auto insurance, you may want to read this article by Mike Heuer regarding its basic types.
An Examination of Basic Automobile Insurance Types
There are many ways of insuring an automobile and protecting its owner as well as others against potential calamity if involved in an accident or damaged or destroyed by some other peril. This article examines the most common types and helps determine which ones people should buy when insuring their vehicles.
The most basic of automobile plans is a standard bodily injury and property damage liability policies required by all states to drive legally on public roads. Such plans generally are used to insure low-cost vehicles owned by people with few assets to protect. They will pay the costs up to policy limits for injuries to one or more people and for damage inflicted upon other people's property if involved in an accident. Those who have more assets to protect are well-advised to choose higher policy limits instead of going with the state-mandated minimums. But those with few assets might find it more affordable to carry the minimum amount allowed by law and simply file for bankruptcy if faced with an excessive legal judgment.
Beyond the state minimums of insurance protection are full coverage insurance plans that provide collision and comprehensive insurance protection designed mostly to protect the collateral used to obtain financing for new and used vehicles. But such policies also benefit people who drive expensive vehicles that would cost a great deal to repair or replace if involved in an accident or other peril.
Collision policies will pay the costs up to policy limits and minus any deductible amounts for damages caused by a collision with another automobile or object or the sudden upset of a vehicle, such as might happen while driving in icy roads that cause a loss of traction and control. And comprehensive plans pay the costs of other types of damages or losses, such as a vehicle being stolen or its contents being pilfered by a thief.
Another common type of automobile insurance is called uninsured and underinsured motorist policies. Such plans insure vehicle owners against the possible cost of being involved in an accident in which the other motorist is at fault but has too little or no insurance protection to pay the costs of repairing or replacing the victim's property or medical expenses. In such cases, the offending motorist too often can file bankruptcy or even leave the country to avoid paying the victims. But uninsured and underinsured plans can pay those costs instead of making matters far worse for an accident victim. Such plans generally are affordable and can benefit nearly anyone.
There are some types of vehicle insurance that are handy for some and not so much for others. Rental car plans are not necessary if using a credit card already offering rental car insurance when using them to pay for the rental. And roadside assistance and towing coverages can be handy for people who travel a lot and have little knowledge of how to do something as basic as changing a flat tire along the roadside. But if they know reliable people with such skills or possess those skills themselves, the cost of carrying roadside assistance and towing protection generally is not worth the price paid.
Knowing which basic car insurance types are necessary requires assessing personal assets, whether or not a vehicle is financed and the likelihood of needing roadside assistance or possibly being involved in an accident with an uninsured or underinsured motorist. In some places, there is a greater possibility of one mishap or another to occur. And if there is a specific insurance plan available to manage that risk at an affordable rate, it is best to buy it and have the peace of mind that comes with such sound risk management.
Find good deals on car insurance at http://www.generalinsurance.org.
Source: EzineArticles.com.
Thank you Mike! That was another great article.
Nadav
nadavs
An Examination of Basic Automobile Insurance Types
There are many ways of insuring an automobile and protecting its owner as well as others against potential calamity if involved in an accident or damaged or destroyed by some other peril. This article examines the most common types and helps determine which ones people should buy when insuring their vehicles.
The most basic of automobile plans is a standard bodily injury and property damage liability policies required by all states to drive legally on public roads. Such plans generally are used to insure low-cost vehicles owned by people with few assets to protect. They will pay the costs up to policy limits for injuries to one or more people and for damage inflicted upon other people's property if involved in an accident. Those who have more assets to protect are well-advised to choose higher policy limits instead of going with the state-mandated minimums. But those with few assets might find it more affordable to carry the minimum amount allowed by law and simply file for bankruptcy if faced with an excessive legal judgment.
Beyond the state minimums of insurance protection are full coverage insurance plans that provide collision and comprehensive insurance protection designed mostly to protect the collateral used to obtain financing for new and used vehicles. But such policies also benefit people who drive expensive vehicles that would cost a great deal to repair or replace if involved in an accident or other peril.
Collision policies will pay the costs up to policy limits and minus any deductible amounts for damages caused by a collision with another automobile or object or the sudden upset of a vehicle, such as might happen while driving in icy roads that cause a loss of traction and control. And comprehensive plans pay the costs of other types of damages or losses, such as a vehicle being stolen or its contents being pilfered by a thief.
Another common type of automobile insurance is called uninsured and underinsured motorist policies. Such plans insure vehicle owners against the possible cost of being involved in an accident in which the other motorist is at fault but has too little or no insurance protection to pay the costs of repairing or replacing the victim's property or medical expenses. In such cases, the offending motorist too often can file bankruptcy or even leave the country to avoid paying the victims. But uninsured and underinsured plans can pay those costs instead of making matters far worse for an accident victim. Such plans generally are affordable and can benefit nearly anyone.
There are some types of vehicle insurance that are handy for some and not so much for others. Rental car plans are not necessary if using a credit card already offering rental car insurance when using them to pay for the rental. And roadside assistance and towing coverages can be handy for people who travel a lot and have little knowledge of how to do something as basic as changing a flat tire along the roadside. But if they know reliable people with such skills or possess those skills themselves, the cost of carrying roadside assistance and towing protection generally is not worth the price paid.
Knowing which basic car insurance types are necessary requires assessing personal assets, whether or not a vehicle is financed and the likelihood of needing roadside assistance or possibly being involved in an accident with an uninsured or underinsured motorist. In some places, there is a greater possibility of one mishap or another to occur. And if there is a specific insurance plan available to manage that risk at an affordable rate, it is best to buy it and have the peace of mind that comes with such sound risk management.
Find good deals on car insurance at http://www.generalinsurance.org.
Source: EzineArticles.com.
Thank you Mike! That was another great article.
Nadav
nadavs
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