Car Insurance: Six Things to Know Before You Buy
Monday, April 6, 2015, 5:00 AM | Leave Comment
Car insurance entails juggling six important factors: deductibles, fault determination, monthly payments, coverage requirements for certain jobs, types of coverage, and umbrella insurance.
Weighing the importance of these factors with regards to your personal financial situation, vehicle, and driving environment should be done before purchasing proper car insurance.
Know where to start before you look at buying.
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Deductible
Deductibles are due only in the event a claim is filed. A higher deductible corresponds to lower monthly premiums, and vice versa. A high deductible can end up costing more if the deductible amount is not on hand.
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Fault Determination
In an incident, fault determination is going to be a priority. Without lying or breaking the law, do not admit fault, not even off the record.
Refer questions to police investigators and/or insurance agents since you and the insurance provider are on the same page to minimize or avoid liability.
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Monthly Payments
Monthly payments are payable regardless of claim status. These payments increase with higher coverage limits, more types of coverage and lower/absent deductibles.
Know what you can afford and what you won’t be able to pay on a monthly basis before you go in.
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Coverage Requirements for Jobs
Some jobs such as government employee positions in military facilities require minimum coverage levels. This is to protect not only the employee/driver, but also surrounding personnel and property.
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Coverage Types
Coverage can be categorized as “for others”, “for you”, and “for the vehicle”. Bodily injury and property damage for others covers damage you might cause to others’ health and/or property in an accident.
Medical payments, uninsured and under-insured coverage will cover accident-related healthcare costs.
Uninsured and under-insured coverage assists your financial protection if the other party in an accident has no, or insufficient insurance to cover your medical costs.
Vehicle coverage includes comprehensive, collision, and roadside assistance if a vehicle is damage. Additionally, rental reimbursement can pay for a rental vehicle while the damaged vehicle is being repaired.
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Umbrella Insurance
In some cases, umbrella insurance may be a prudent investment. For a slightly higher price, a provider increases injury and property damage limits along with financing for legal defense associated with an accident.
At Fannin Litigation Group, lawyer will often work with umbrella insurance policy holders to maximize their chances of a successful defense in case a situation warrants it.
Insurance may seem simple at first glance, but in fact it involves quite a few decisions and trade-offs.
Keep in mind that there is such a thing as being over-insured, so zealously purchasing every coverage possible to the maximum extent may be a poor investment.
Just make sure you have a good budget ready and are prepared to do the research.
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