Sunday, August 19, 2007
Terms and Definitions
The car insurance terms and definitions listed below will help you understand what you're buying when you shop for car insurance or other types of vehicle insurance.Additional Interest Insured
A company or person who has been named as an Additional Interest Insured on a policy can be liable for an accident that involves an insured person or vehicle. For example, a lienholder can be an Additional Interest Insured.
Anti-Theft Device
A device, either active or passive, that attempts to prevent vehicle theft. Active anti-theft devices can track and recover a vehicle and automatically contact a response center to begin the vehicle recovery process. Passive anti-theft devices attempt to prevent theft by using sophisticated electronic car alarms, simple steering wheel locks, etc.
Bodily Injury Liability Coverage (BI)
If an insured person is legally liable for an accident, BI coverage pays for injuries/death to people involved in the accident other than the insured driver. BI also pays for legal defense costs if you are sued. Certain exclusions may apply. Refer to your policy.
Comprehensive Coverage
If your insured vehicle is damaged due to an event other than a collision, Comprehensive coverage will pay for the damage. This includes damages from fire, theft, windstorm, flood and vandalism. If your vehicle is stolen, Comprehensive covers transportation and loss of use expenses when applicable.
Collision Coverage
When your insured vehicle overturns or collides with another object, Collision coverage pays for the damage to your vehicle. Collision coverage also may extend to a non-owned vehicle or one rented for personal use that is in your custody or that you are operating. Certain exclusions may apply. Refer to your policy.
Continuously Insured
Being continuously insured means your insurance coverage from an insurer or more than one insurer was in effect at all times, without a break or lapse in coverage for any reason.
Declarations Page (Dec Page)
Also known as an auto insurance coverage summary, this page is provided by your insurance company and lists the following:
Types of coverage you have elected
Limit for each coverage
Cost for each coverage
Specified vehicles covered by the policy
Types of coverage for each vehicle covered by the policy, and Other information applicable to the policy.
Deductible
A deductible is the amount you agree to pay out of pocket for damage resulting from a specific loss or accident. Generally, choosing a higher deductible will lower your premium.
Driver Improvement Course
Drivers age 55 and older can take a voluntary driver improvement course to refresh and enhance their driving skills. Taking this course may qualify these drivers for a discount if they meet eligibility requirements.
Driver Status
People can be added to policies with the following types of driver status:
Rated – Actively drive vehicles on the policy
Excluded – Not allowed to drive vehicles on the policy and will not be covered under your policy in the event of an accident
Listed – Residents of the household who do not drive the vehicles on the policy (such as a roommate)
Full Coverage
"Full coverage" is a common term that people use to describe how much auto insurance coverage they have. Though there is no such thing as "full coverage," it often implies that the policy has more than just Liability coverage.
Garaging Location
A garaging location is the place you primarily park your vehicle when you're not using it. Generally, this is your primary residence.
Limits
An insurance coverage limit is selected by you and is the most an insurance company will pay for damages or injuries that apply to the coverage. Most states have laws that specify the minimum limit that must be purchased for each required insurance coverage.
Loan/Lease Payoff Coverage
Loan/Lease Payoff coverage, sometimes called "gap" coverage, pays the difference between what you owe on your vehicle and what your insurance pays if your vehicle is declared a total loss or stolen and not recovered, less your Comprehensive or Collision deductible.
Named Insured
The first person in whose name the insurance policy is issued.
Medical Payments (MedPay) Coverage
MedPay is an optional insurance coverage that pays for reasonable and necessary medical and funeral expenses for covered persons. These expenses must be incurred as a result of an auto accident.
Occasional Driver
A person who is not the primary or principal driver of the insured vehicle is an occasional driver.
Personal Injury Protection (PIP) Coverage
PIP is a coverage in which the auto insurance company pays, within the specified limits, the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle. PIP is the basic coverage implemented in No-Fault automobile insurance states.
Policy Expiration Date
Your current insurance policy ends on your policy expiration date, which is found on your current policy documents, Declarations Page (Dec Page), insurance identification card or recent cancellation notice. This date should not be confused with payment due dates.
Policy Term
The length of time your policy is active and in force is your policy term.
Premium
A premium is the amount of money paid to an insurance company in return for insurance protection.
Primary Residence
A primary residence is the place where you will live for the majority of your policy term.
Primary Use
Primary use is how you mainly use your vehicle. Primary use options include to/from work, business, pleasure or farm use.
Principal Driver
The person who drives the car most often is the principal driver.
Property Damage Liability Coverage (PD)
If an insured person is legally liable for an accident, PD coverage pays for damage to others' property resulting from the accident. PD also pays for legal defense costs if you are sued. Certain exclusions may apply. Refer to your policy.
Rental Reimbursement Coverage
Rental Reimbursement provides rental car coverage if you have a claim that is covered under Comprehensive or Collision coverage. Daily rental amounts are subject to the limit purchased.
Roadside Assistance Coverage
Roadside Assistance provides services such as towing, flat tire change, locksmith service and battery jump-start to customers, who can elect the service for an additional premium if it is not already included with their insurance policy..
Salvage Titles
State laws determine if a vehicle requires a salvage title.
Some states base salvage titles on the extent of damage a vehicle has sustained. For example, in Louisiana, damage to a vehicle must equal or exceed 75 percent of the vehicle's retail value in order for it to require a salvage title, according to state law.
Other states, such as Florida, require a vehicle to have a salvage title if the insurance company declared the vehicle a total loss. These titles generally indicate whether the vehicle is "rebuildable" (can be repaired and driven on the road) or "not rebuildable" (must be sold for parts).
Other states "brand" or "notate" the vehicle's title when the estimate of damages reaches a certain percentage of the vehicle's retail value (in New York, it is 75 percent), even if the vehicle has not been declared a total loss and is able to be repaired.
Other states have no guidelines for issuing salvage titles.
Second Named Insured
The named insured or listed agent/broker on a policy may request to designate any other person listed on the policy as a second named insured. The second named insured has the same coverage under the policy as the named insured.
SR-22
An SR-22 is a document required by the court that demonstrates proof of financial responsibility for persons convicted of certain traffic violations.
Uninsured Motorist Coverage (UM)
If a driver or owner of a vehicle does not have insurance and is legally liable for an accident, you can use UM coverage for injuries, including death, that you, your resident relatives, and occupants of your insured vehicle sustain, up to the limits you select. Certain exclusions may apply. Refer to your policy.
Underinsured Motorist Coverage (UIM)
If a driver or owner of a vehicle is legally liable for an accident but does not have enough insurance, you can use UIM coverage for injuries, including death, that you, your resident relatives, and occupants of your insured vehicle sustain, up to the limits you select. Certain exclusions may apply. Refer to your policy.
Uninsured/Underinsured Motorist Property Damage Coverage (UMPD)
If driver or owner of a vehicle is legally liable for an accident but does not have insurance or does not have enough insurance, you can use UMPD to cover damage to your insured vehicle, up to the limits you select. In some states, UMPD is available as an alternative to Collision coverage. Certain exclusions may apply. Refer to your policy.
Vehicle Identification Number (VIN)
The Vehicle Identification Number (VIN) for your vehicle is usually found on the driver's side of your dashboard, the vehicle registration or the title. The VIN is a combination of 17 letters and numbers that can be used to identify the make, model and year of a car.
These definitions provide a brief description of the coverages Progressive offers and some of the terms and phrases used in connection with vehicle insurance. These definitions are not applicable in all states or for all products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.
Car Insurance Myths
There are many preconceptions that folks have about car insurance and as a result, they are prevented from making good financial decisions. Here are the five major myths that plague drivers.1. There’s no way around paying an expensive premium for a teen driver
While the statistics show that teenage drivers, especially 16-yr-olds, are at a dramatically increased risk of getting into an accident than other age groups, that doesn’t mean that your teen is doomed to have to deal with the claims service anytime soon. Automatically, you will have to pay a high premium to insure your teenage driver, but that premium can decrease if they keep their driving record clean, enroll in a driver’s ed course, and make good grades. Many insurance companies are willing to look at each individual teen and their risk factor, rather than lumping all teens together in one big group of high-risk customers. Know the discounts that you can benefit from if your teen takes certain steps to driving safely! Not only will you save a lot of money by securing these discounts, but it might just save your teen’s life. Another tip is that if you add your teen onto your own policy, rather than signing them up for a separate policy – the premium will be lower.
2. Changing car insurance companies is a big hassle
If you want to change your insurance policy, you might be intimidated by such a move and may not even follow through with it. But if for whatever reason you’re ready to go to a different insurance company – you got a new job and want to get more comprehensive coverage from elsewhere, you lost your job and need a more basic policy, or you ditched that classic car for a more conventional car and need distinctly different insurance. Whatever the case, there will likely be a time when you will reevaluate your insurance plan. And you should, because a switching insurance companies is not difficult!It takes little effort to cancel your policy. Think about it! Insurance companies purposely cancel customer’s policies whenever they fail to pay the premium. You’re not in a lifetime contract with your insurance company. However, be wary that if you do cancel your policy, other companies will be skeptical about taking you on as a customer. The way to avoid this is to just talk to your current insurance company and ask for them to request a cancellation. As long as you plan ahead, you can make it to where your new insurance company insures your vehicle about the time you get dropped from your old policy. All it takes is a little planning!
3. A high deductible is to be avoided
Some people are under the impression that a high deductible payment is a bad thing. After all, it means you’ll spend more money in the case of an accident, etc. However, a policy with a high deductible is likely a policy that offers low, monthly rates. Thus, in the long run – especially if you are a safe driver and don’t get into a wreck! – you will be paying less for your policy, rather than more. Always remember to consider every cost of your insurance before you deem it cheap or expensive.
4. It will be easy to repair your car or replace it if you weren’t at fault in an accident
Remember that the very minute you drive your car off the store’s lot, it’s begun to depreciate in value. The amount of money your insurance company said your car was worth when you signed up for your policy is not the amount it will be worth the next day, week, month, and year. So if you do get into an accident, even if it’s not your fault, you will have to keep in mind that you’re not going to get the original value of the car back. It’s important to be prepared for this.
5. You need every kind of coverage to feel good about your policy
A lot of people unfortunately get tricked into buying comprehensive car insurance that they just don’t need. While it’s tempting to insure your car for theft, vandalism, bad weather, and every kind of accident that can occur, it’s not necessary. If your car is old, used, and already been paid off, it may be more expensive to insure it so elaborately than to deal with the losses out of pocket when bad things do happen to it. So make sure you have a good idea of what your needs are before you compare different policies.
Car Insurance Law
If you own a car, you probably already have insurance coverage or you are at least shopping around for it. The reasons for this are that the government requires it, the finance company that is helping you afford your car may require it as well, and of course, you want the peace of mind that you get when you know you and your car, and all others on the road, are protected.
But the most glaring motivator of getting car insurance right from the get-go is probably the law. Thus, if you plan to abide by it, there are few key things you must understand about auto insurance coverage regarding the legal system and the government. Because even if you have a policy, you still may only be an insured driver – not a legal driver! Here is a guide to the law so that you can make sure both you and your insurance company are following it.
1. You may not actually be required to have car insurance!It seems strange to begin with this, but car insurance isn’t compulsory in every state. However, those states that do not require that you have a policy do require that you are financially responsible enough to handle the costs of damage and injury in the case of a car accident and the like. Still, usually the only way to achieve that is to have an insurance policy.
2. Your state’s insurance department has the final word on the rates you payIf you feel your insurance policy is charging you outrageous rates, make sure this is legal. Insurance companies do answer to a higher governmental power and they are required to keep their rates below a certain number (that varies). Generally, if you’re curious as to how your insurance company tallies its rates, ask your state’s department about it!
3. Your insurance company has the right to cancel your policyThere are different things that are required of you as an insurance policy customer and if you do not fulfill these requirements, your insurance company is not legally bound to keep insuring you. Firstly, and most obviously, if you don’t pay your premium, you can be dropped from your policy. As well, if you lose your driver’s license, your policy can be cancelled. And lastly, if you were deceitful in the application process for your policy, you can and most likely will be dropped – in fact, a claim already being processed can be found null and void in this case. If you failed to disclose facts about your lifestyle, personal history, or the type of vehicle you drive, that make you more at risk for getting in an accident, etc, then an insurance company is by no means committed to you. For example, perhaps you failed to inform the company about your drunken driving arrest! But other than these things, your state legally requires your insurance company to fulfill its contract with you. However, there is a major caveat here. No company has to renew your policy – if it finds your driving record makes you a bad risk, it doesn’t have to keep you as a customer. More alarmingly, if things out of your control change around you – the statistics about your neighborhood change, etc – a company can choose not to renew.
4. You only have to have third party coverageBy law, you are only obligated to have enough financial backing to cover the costs of damage and personal injury that you cause to another driver and/or vehicle. You don’t have to have coverage that takes care of theft, vandalism, natural disasters, etc. Also, you don’t have to be able to pay for damages to your own vehicle or injuries to yourself. So even thought the law requires you get a policy, you don’t have to go broke getting the most comprehensive coverage possible.
But the most glaring motivator of getting car insurance right from the get-go is probably the law. Thus, if you plan to abide by it, there are few key things you must understand about auto insurance coverage regarding the legal system and the government. Because even if you have a policy, you still may only be an insured driver – not a legal driver! Here is a guide to the law so that you can make sure both you and your insurance company are following it.
1. You may not actually be required to have car insurance!It seems strange to begin with this, but car insurance isn’t compulsory in every state. However, those states that do not require that you have a policy do require that you are financially responsible enough to handle the costs of damage and injury in the case of a car accident and the like. Still, usually the only way to achieve that is to have an insurance policy.
2. Your state’s insurance department has the final word on the rates you payIf you feel your insurance policy is charging you outrageous rates, make sure this is legal. Insurance companies do answer to a higher governmental power and they are required to keep their rates below a certain number (that varies). Generally, if you’re curious as to how your insurance company tallies its rates, ask your state’s department about it!
3. Your insurance company has the right to cancel your policyThere are different things that are required of you as an insurance policy customer and if you do not fulfill these requirements, your insurance company is not legally bound to keep insuring you. Firstly, and most obviously, if you don’t pay your premium, you can be dropped from your policy. As well, if you lose your driver’s license, your policy can be cancelled. And lastly, if you were deceitful in the application process for your policy, you can and most likely will be dropped – in fact, a claim already being processed can be found null and void in this case. If you failed to disclose facts about your lifestyle, personal history, or the type of vehicle you drive, that make you more at risk for getting in an accident, etc, then an insurance company is by no means committed to you. For example, perhaps you failed to inform the company about your drunken driving arrest! But other than these things, your state legally requires your insurance company to fulfill its contract with you. However, there is a major caveat here. No company has to renew your policy – if it finds your driving record makes you a bad risk, it doesn’t have to keep you as a customer. More alarmingly, if things out of your control change around you – the statistics about your neighborhood change, etc – a company can choose not to renew.
4. You only have to have third party coverageBy law, you are only obligated to have enough financial backing to cover the costs of damage and personal injury that you cause to another driver and/or vehicle. You don’t have to have coverage that takes care of theft, vandalism, natural disasters, etc. Also, you don’t have to be able to pay for damages to your own vehicle or injuries to yourself. So even thought the law requires you get a policy, you don’t have to go broke getting the most comprehensive coverage possible.
Insurance Exclusions
The exclusions are:
- Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failure or breakages.
- Any damage to tyres and tubes unless the vehicle is also damaged at the same and the liability of the Insurer will be restricted to 50% of the cost of replacement; and
- If the private car is driven by a person who is under the influence of intoxicating liquor or drugs at the time of loss
- Driving without a Valid Driving Licence
- Using the vehicle for hire or reward, carriage of goods other than samples, racing and other racing related purposes and motor trade purposes
- Any accidents outside the geographical area
Car - Reimbursement Settlement
In case you are unable to spot a network garage close by to the spot of the accident take your car to a near by non-network garage.
Contact our 24x7 call centre and register your Claim and get your claim number / reference number.
Call centre representative will provide you the details of documents required for claim processing and the address to which you need to send in all the requested documents.
You would have to send in the requested documents to the address provided.
We would reimburse you within 5-7 working days once all the documents have reached us.
The insured will be required to pay the excess amount as informed by the CSM.
Contact our 24x7 call centre and register your Claim and get your claim number / reference number.
Call centre representative will provide you the details of documents required for claim processing and the address to which you need to send in all the requested documents.
You would have to send in the requested documents to the address provided.
We would reimburse you within 5-7 working days once all the documents have reached us.
The insured will be required to pay the excess amount as informed by the CSM.
Documents Required For Claim
For Accident Claims
Claim form duly signed *
RC copy of the vehicleDriving license copy**
Policy copy (First two pages)
FIR on a case-to-case basis
Original estimate
Original repair invoice, payment receipt (for cashless garage, only repair invoice)
For Theft Claims
Claim form duly signed*
RC copy of the vehicle with all original keys
Driving license copy
Original policy copy
Original FIR copyRTO transfer papers duly signed along with Form 28, 29, 30 and Form 35 (if hypothecated)
Final report – A no trace report from the police saying that the vehicle cannot be located.
For Third Party Claims
Claim form duly signed*
Police FIR copyDriving license copyPolicy copyRC copy of the vehicle*
Stamp required in case of company registered vehicle ** Original documents
Claim form duly signed *
RC copy of the vehicleDriving license copy**
Policy copy (First two pages)
FIR on a case-to-case basis
Original estimate
Original repair invoice, payment receipt (for cashless garage, only repair invoice)
For Theft Claims
Claim form duly signed*
RC copy of the vehicle with all original keys
Driving license copy
Original policy copy
Original FIR copyRTO transfer papers duly signed along with Form 28, 29, 30 and Form 35 (if hypothecated)
Final report – A no trace report from the police saying that the vehicle cannot be located.
For Third Party Claims
Claim form duly signed*
Police FIR copyDriving license copyPolicy copyRC copy of the vehicle*
Stamp required in case of company registered vehicle ** Original documents
Steps to Save Insurance
You may be able to save on insurance based upon these decisions:
Geography
Where you live makes a difference. Folks living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.
Driving Violations
Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your premium will get lower.
Vehicle Type
A cheap car will cost less to insure than that status symbol SUV sitting on 24" rims.
Accident Claims
A driving record that is clean and free of accidents will hold far better for you than lots of tickets and/or accidents.
Credit Rating
Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. Monitor your credit rate free to see if you can get a better score. A better credit score will save on insurance premiums.
Occupation
Insurers have statistically found a correlation between your occupation and risk. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day.
Education
A higher education can save on your premiums.
Driving distance to work
Miles driven each yearYears of driving experience
Business use of the vehicle
Whether or not you currently have auto insurance and how high are your limits
Theft protection devices (often results in discounts)Multiple cars and drivers (another opportunity for discounts)
Steps To Claim
Having even a teeny-tiny car accident can be one of life's least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.
They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.
- Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
- Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
- Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
- Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site.
- Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
- Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
- Consider these settlement factors.
Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.
Coverages
What do the minimums cover?
Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.
Coverage Definitions :
Bodily Injury Liability covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.
Comprehensive Physical Damage Coverage Covers your vehicle, and sometimes other vehicles you maybe driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.
Collision Coverage covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.
Medical Payments covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. Does NOT matter who is at fault. Coverage is limited to the terms and conditions contained in the policy.
Uninsured Motorist Coverage covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. Coverage is limited to the terms and conditions contained in the policy
Personal Injury Protection Coverage covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured's own injuries on first-party basis, without regard to fault. It is only available in certain states.
Property Damage Liability covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.Rental Car Reimbursement covers renting a car if your car isn't drivable or while your car is being repaired because of a covered accident.
What else is available and can you afford it?
Did you come across a coverage and think, "I need that but it isn't required by state law" when you were reviewing the coverage definitions? Chances are you did. Can your budget afford the additional expense of these protections? Or maybe more to the point; can you afford NOT to have these additional protections? At CarInsurance.com it's easy to get multiple quotes all with a click of your mouse. And during the quoting process, it's simple to add or remove coverage to see how additional coverage will affect your budget.
What are you protecting?
What assets need to be protected from being plucked away if you cause injury or damage?
A) Your car itself. If this is a significant asset, or at least the bank you owe money to thinks so, then you will need comprehensive and collision.
B) Your net worth. Do you have an enormous net worth to protect. If so, either get it out of your name and into a trust or buy all the insurance you can. If you have little or nothing to protect, then you can get by with less and still be financially responsible.
However, after you determine how much protection to get, always ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little cost.Car insurance isn't flashy. There is no "wow" factor and the opposite gender isn't going to be impressed by the size of your policy. But not having enough can be the difference between financial stability and financial ruin. For what its worth, CarInsurance.com finds financial stability incredibly appealing.
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