What
Exactly is Automobile Insurance:
Drive Smart Insurance is designed to provide
protection to you in the event you injure others, including property damages
and bodily injury, as a result of an accident. Furthermore, depending on the
coverage and plan you have, it will provide reimbursement to you for injuries and
damage done to your vehicle. In its most basic form, Drive Smart Insurance is a
contract, made between you and your carrier. You agree to pay a set price,
referred to as premiums, in exchange for selected coverages.
The type of policy you have is written out in detail
in the declaration page, so make sure you always read it and understand the
exact coverage you have. It's always smart to go through your policy thoroughly
and make sure you don't have any overlapping items, such as rental insurance.
This is often covered on your credit card agreement, so you might just be
wasting money having it. Remember, you can always upgrade your insurance and
cancel it anytime.
What
does automobile insurance cover?
This is a common question new customers always ask agents.
The answer is, it depends on the plan and policy type you buy.
There are four main categories of protection.
*
Liability Insurance
This covers injuries to the other party, damage to
their vehicle and also property damages. If you have a vehicle not worth very
much and you don't drive too often, liability only insurance may make sense. It
is much cheaper than comprehensive, with pricing in some states starting at $29
for good drivers.
*
Collision Insurance
This will pay for damage and medical costs pertaining
to you. It's smart to buy it if your vehicle is newer and worth more than
$12,000.
*
Comprehensive Insurance
This is the gold standard of coverage. This type of
policy costs more but has wide ranging protection. It coincides with collision
and will repair of replace your automobile for events that cause damage or a
loss, not relating to an vehicular accident. This means if your car is stolen,
you will be protected and can get it replaced for its current market value.
Also, weather related damages done to your auto will also be covered. Typical
examples are flooding, fires and animal incidents.
*
Uninsured Motorists Insurance
There are more people driving on the roads uninsured
than ever before. Buying uninsured motorists insurance will protect you from
these lawless drivers. If you get involved in an accident with someone with no
insurance, you will insured up to your policy limits.
It is important to know that every state has
different insurance mandatory coverage and laws. You should familiarize
yourself with the mandated limits in your state and stay current with changing
laws.
The
Most Common Drive Smart Insurance Coverage’s
Each type of coverage you purchase contains a set of
limits, policy terms and multiple conditions. Bodily injury is an all important
one.
It will pay for, as the name implies, bodily injuries
sustained from an incident you were found to be at fault causing. A good
liability policy will also pay for legal fees, up to certain predefined limits,
in the event you are sued in court.
Liability will also pay for damages you caused to
another person’s property, almost always their automobile, after an at-fault
accident occurred. Medical insurance will most often cover you and the
passengers riding along in your vehicle who were hurt in a crash. Another
advantage of having good medical coverage is, it will cover medical costs in
the event you are hit by a car walking as a pedestrian.
There are several states that have PIP or personal
injury protection laws as opposed to medical coverage. Some people refer to
this as no-fault coverage. PIP insurance will most often pay for medical,
funeral, income loss and a variety of other costs that relate to bodily
injuries sustained after a vehicle accident.
The most important thing to think about when buying
auto insurance is getting coverage that meets your needs. What are your
specific needs, including your budget and tolerance of risk? Remember, you
should think of a worst case scenario, such as buying enough coverage to
replace your car and protecting the assets you have accumulated.
In general, the higher your personal net worth, the
more insurance protection you will need. Lawyers also target people who have
large amounts of money with vigorous lawsuits, claiming pain and suffering
damages. Your insurance plan should follow your asset growth and protect you to
the fullest.
Source:
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