auto insurance

Auto Insurance
The Basics  
 

So you抮e the new kid in town, looking to put a fresh set of wheels on the road - or maybe just the same old set in a brand new neighborhood. Either way, state law requires that you insure your vehicle before hitting the highway.
 
Choosing automobile (auto) insuranceis a lot like choosing the car it covers-- the task requires thoughtful analysis based on price, individual need and personal taste. A basic auto insurance policy safeguards against property damage, liability and medical costs by offering an ala carte menu of separately priced coverage.

• Collision- While not mandatory, this reimburses damage to your car that results from an accident. Collision generally comes with a deductible, as much as $1,000, which you are required to pay up front. If the accident was not your fault (and of course it never is), your auto insurance company might reimburse you for the deductible amount.
• Comprehensive- Reimburses for loss due to theft or damage caused by something other than an accident such as fire, earthquakes, falling objects or getting hit by very large animals such as deer, moose or confused rhinos. This coverage, seldom mandatory, usually comes with a small deductible - although cracked or shattered windshields are often fully compensated.
• Bodily Injury- Covers you, or a family member in case of injury caused to a third party. Adequate liability insurance is essential given the high cost of going to court and, if you抮e found liable, paying the ensuing damages. Most states require liability insurance and the experts strongly recommend buying more than the state required minimum - as much as $100,000 per person and $300,000 per accident. Check into umbrella policies which expand coverage and increase compensation limits.
• Medical Payments or Personal Injury Protection (PIP)- Pays the hospital and doctor bills and lost wages incurred by the driver, or passengers, resulting from an accident.
• Property Damage Liability- Pays for the damage youcaused to someone else automobile or property. Does the same if someone was driving your car without permission.