Buying a car is not the end of the expenses related to the car. There are lots of other costs involved in maintaining the car that involves gasoline money, repairs required for the car, the regular maintenance of the car and of course, an insurance policy.
It is very important that you have insurance for your car. There are numerous types of car insurance coverage available today of which collision and comprehensive coverage are two of them. However, some states don’t consider it necessary to carry this coverage on the insurance policy.
But there are some lenders who need this coverage till the car is paid off so that in case the car is totaled, the bank has the right to recover some of the amount that is lent to you. However if you have an old and beat up car, it may not be worth paying for the cost of collision and comprehensive coverage.
Collision coverage is the coverage that pays your medical expenses and property damage if you get involved in an accident where you are found to be at fault for the accident. The liability of the insurance pays for the other party. However if you have no collision coverage, you will have to pay all the expenses related to the damage incurred to you or the property, because of the accident.
In addition to this, collision coverage is useful if you get involved in a single car accident like running into a tree or going off the road. In other words, this coverage protects you in accidents where you are at fault for the accident.
The reason it is advantageous to have comprehensive coverage is because this coverage covers practically everything that is not covered by liability and collision coverage. Repairs incurred by vandalism, theft and other damage by hail can be made using comprehensive coverage. Such damages can be rather expensive, and this is why you should have comprehensive coverage in your car insurance policy.
There are different sets of levels of coverage you can choose from this insurance coverage. When choosing your level of coverage, you have to evaluate your needs. Depending on the worth of the car, the coverage usually spans from $50,000 to $250,000. Of course, the higher is the amount of money you expect the insurance company to pay you in case of an accident, the higher will be the premium amount you have to pay to the company.
In addition to the premium amount, you have to consider the deductible when choosing the level of coverage for your insurance policy. The deductible is the amount you will have to pay for damages before the insurance company pays the bills. The deductible amount may be as low as $20 or as high as $1,000; it all depends on your capacity. However remember that the higher is the deductible, the lower will be the premium amount you have to pay.
To sum it up, it is advantageous to have collision and comprehensive coverage included in your car insurance policy. With this coverage, you are sure you will receive protection in whatever type of accident you get involved in.
Daily Archives: March 12, 2010
The Fundamentals of Car Insurance Coverage
Affordable New Jersey Car Insurance – Where to Get it
Looking for affordable New Jersey car insurance but don’t want to waste a lot of time shopping for quotes? Here’s a brief explanation of insurance coverages, how to save money on them, and how to get affordable insurance quickly and easily. Minimum New Jersey Car Insurance
New Jersey requires you to have three types of car insurance coverage: liability , personal injury protection, and uninsured/underinsured motorist coverage. Comprehensive and collision coverage are not required. Liability Coverage
Liability coverage pays for the other party’s bodily injury and property damage expenses when you cause an accident. It also covers your legal bills if you’re sued.
If you don’t have a lot of assets and you don’t drive a lot, you may want to stick with the minimum liability coverage which is: $15,000 bodily injury liability coverage for one person, $30,000 bodily injury coverage for all injuries, and $5,000 property damage liability coverage. However, if you do have a lot of assets you’ll want to get enough liability insurance to cover them in case you’re sued. Personal Injury Protection
Personal injury protection coverage pays for you and your passengers’ medical bills if you have an accident in your car, someone else’s car, or if you’re walking. If you already have medical insurance then you only need to get the minimum amount of coverage. Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage pays for your medical bills if you’re injured by an uninsured driver, an underinsured driver, or a hit-and-run driver. Comprehensive and Collision Coverage
Comprehensive coverage pays for damage to your car caused by theft, natural disasters, fire, or vandalism. You can save money on this coverage by raising your deductible (the amount you’re required to pay on a claim before your insurance kicks in).
Collision coverage pays for repairs to your car if you cause an accident. You can save money on this coverage by raising your deductible. Raising it from $200 to $500 will save you up to 30% on your premium. Compare Rates the Easy Way
The only way to know if you’re getting the best insurance rate for your situation is to compare rates from different companies, and the easiest way to do that is to go to an insurance comparison website. It only takes a few minutes, it’s easy, and it’s free.
Visit http://www. LowerRateQuotes. com or click on the following link to get affordable New Jersey car insurance quotes from top-rated companies in your area and see how much you can save. You can get more car insurance tips by checking out their “Articles” section.
