Saturday, November 29, 2008

AUTO INSURANCE, ALL THAT THINGS THAT YOU HAVE TO KNOW BEFORE BUY AUTO INSURANCE

Auto Insurance is one kind of safe guard that protects the Auto Insurance policy holder from economical losses happens concerning automobiles. Auto Insurance helps you to protect from economical loss if you have an accident. It is a simple contract between you and the insurance Company which selling Insurance Policies. According to this contract, you (policy buyer) have to pay some of money called premium to the Insurance Company. On behalf of this premium Insurance Company will takes the responsibility of the Economical losses that occurred from an accident.
To have auto Insurance policy is good for you, your family and your business. In the Auto Insurance market there are many types of auto Insurances are available. Those different types of auto Insurance policy have their own benefits. Some policy protects the third person, who had some injury by the policy holder. There are also available that type of Insurance policy, which helps a car or a bus owner by giving expenses for the treatment of injured driver and passengers. While some are for damages that the policy holder cause to someone else’s property. The Amount of Auto Insurance is different by Insurance companies. Sometime same insurance policy, with same protection have different prize. So, before buying any Auto insurance collect all the details of it from most of insurance companies.

Auto Insurance provides mainly three types of coverage to the Policy Holder.
1.Property Coverage
2.Liability Coverage
3.Medical Coverage

The Property Coverage: Property coverage pays your insured car or your any vehicle’s damages that happens from an accident.

Liability Coverage: This coverage pays for legal responsibility to third person. Happening of an accident, if any person injured bodily or his property, then the Insurance Company will pay for it on behalf of the policy owner.

Medical Coverage: This pays for the expenses of treating hurt, rehabilitation and sometimes-lost wages and funeral expenses.

Note down that globally, the laws of forty-seven states require that to purchase liability insurance. It pays for the bodily injury and property damage for that you are responsible. About Fifteen states including New York, New Jersey, Florida, Maryland, Michigan and Massachusetts also require that one have to buy Personal Injury Protection (PIP). This Personal injury protection pays for policyholder’s medical expenses and lost earnings in an auto accident.
Auto insurance industry is very large. There are many types of auto insurance policies to choose. Normally people did not know more about all types of policies and its benefits so they become very confused while buying any auto insurance policy. Before buying any auto insurance thinks about your most likely need, this is the answer to making sure that you are buying a right policy. If your car is damaged then what will you do? You have to arrange other car on rent to start your routing. However, what about this car’s insurance? Don’t worry, the Gap insurance will solve your problem. This insurance pays the expenses of difference between what your insurer pays and which your owe on your lease. In this case, if your car is not completely totaled then this protection will be cancelled. So make sure about all this.
You have to understand how to select better auto insurance. But one important thing is not cleared yet. This thing is the Budget of the insurance. First, you have to examine your state law-rules and your requirements. Then put the different parts of auto insurance policy in single policy. The first and important part of auto insurance is “Liability insurance”. If you buy an auto insurance, which have minimum liability coverage and in an accident, you injure someone. In this situation, the lawyer of the third person can go after your personal property. Therefore, you have to be acquainted with your property and what you can afford to lose in the happening of an accident. Some insurers believe that minimum livability is a gamble. But the truth is that why it is frequently only a little more money for more protection. In fact, when you meet with an accident, there is better for the insurance company to be personally responsible for you. Just think one thing that, in accident you totaled someone’s car then your insurance will covers it? In addition, the second thing is that how much money have you pay from your pocket? The answer of this type of questions will determine which insurance policy or coverage makes you more confident if an accident takes place.

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