When shopping for insurance it is recommended that you shop around and compare policies. This should include inquiring about the amount of coverage and the amount of premiums. In order to find the best possible auto insurance policy for your needs you should be sure to talk to your prospective agent and find out as much as you can about the policy you are considering. Continued ion this article are some auto insurance frequently asked questions.
What are the different parts of the policy? There are several types of insurance involved in most insurance policies. The first of these is liability. This is typically the minimum required coverage permitted by the state you reside in.
Your policy may also include a collision section. This is designed to cover the cost of damages to your car regardless of who was responsible. This can be the most expensive part of your policy. If you do not owe a bank or financial institution any money on the car you may not have to have this aspect of the insurance policy. Naturally it is a good idea to know what the state regulations are for the state you live in.
Who does the policy cover? This pertains to what drivers will be covered if they drive your vehicle. Many insurance policies will strictly cover the individual who is the insured party while other policies may cover anyone who drives the car.
Is auto insurance mandatory? Most states will require you to carry some form of insurance and have minimum requirements pertaining to the amount of coverage that is required. Some states do permit you to be self insured, but this may involve leaving a deposit with the states department of motor vehicle. This despot can exceed $35,000 in some states.
What is uninsured motorist coverage? This pertains to covering an accident with another vehicle in which the other driver is not insured. This type of coverage covers you in the case the other driver did not have insurance.
What are my deductibles? The amount of deductible is the amount that the insurance company will require for you to pay before they will make a payment against a claim. The amount of your deductable will vary based on your policy. The amount of deductable can also affect the cost of premiums. The lower the deductible the higher your premiums will tend to be.
These questions should help you understand auto insurance a little better. You should ask your agent about the amount of coverage included in the insurance policy. It is also a good idea to know exactly what types of coverage are included in the policy and what your deductibles are.