lunes, 4 de abril de 2016

Auto insurance basic policy

There are some important facts you should know about auto insurance that could help you to understand better how does everything work.


Auto Insurance rate

Your driver’s rate can affect heavily, whether an auto insurance company takes you as a policyholder or not, and even if you already have a policy and you have a bad driver’s record, these could affect the way they could react to a certain situations and how much support they will give you.

Also if you have had auto insurance policies before and you are changing companies, then the new company will investigate how many claims did you do and how much were they, this could also be a reason to reject you as an ensure.

Cheap Coverage        

Most common policies are expensive, like liability coverage or the collision coverage, so you can find cheaper policies that could give you great protection for you and your car, some of them are: gap coverage, motorist coverage, roadside assistance, comprehensive coverage, this last one is the most expensive of all but it is still cheaper than liability and collision coverage.

Insurance Discounts

A lot of insurance companies offer discounts as a reward for full payments, electronic payments, safe driving records, safety devices, therefore, we advise you to look for an insurance company that values all those qualities and gives you rewards for it.

Expiration Auto Insurance policy date

In order for you to avoid big expenses you must renew your auto insurance policy before its expiration date for two reasons, first, because if you let it pass, then you will have to pay a higher amount of money to get the policy back and the insurance company will not see this as a responsible move, and second, if you are interested on changing your insurance company, they can realize you did not pay your last policy on time, therefore, they could not accept you, so is better for you if you get the new policy before, the current policy expires. 

Auto insurance basic policy


In most part of the world, it is mandatory for you to have an auto insurance policy to protect you and others in case you have an accident, rubbery, or any other situation where you and your car can be affected. Auto insurance is basically a contract between a policy holder and the insurance company, where this last one, commits to pay for damages according to what the policy establishes. Consecutively, we will give you some basic knowledge about auto insurance, so you can be familiarized and informed about this topic.

Most auto insurance companies cover:

A medical expense, to treat injures caused by accidents and sometimes it also covers funeral expenses in case of death.

Property, for fixing you car from damages produced by theft or car crashes.

Liability, to cover legal responsibility caused to others, whether is to a car or for injuring someone.

In most of the United States, in order to drive a car, people need at least a basic auto insurance policy, besides a driver’s license and the car’s documents.

Who else does an auto insurance policy cover?

Most auto insurance policies will include covering your family members in case they are driving your car with your permission; it also covers other cars’ damages if you are driving them with the owner’s consent. Auto insurance policies also cover damages in case you are transporting people through UBER or other kind of transportation company.

What auto insurance coverage is mandatory?

In some places of the United States laws referring auto insurance change, but in almost every state is mandatory to have:

Property liability, which covers damages to other caused by you or other person that could be driving your car.

Bodily injury liability, which covers injuries caused to you or other person while driving your car, during a car accident.

Personal Injury Protection, it covers injuries for you and a passenger, in case you have an accidents or other kind of mishap.

Auto insurance basic concepts


Within auto insurance policies and contracts there are some concepts that sometimes people read, but they do not understand too well, that is why we will explaine some basic concepts about auto insurance.

Vehicle’s current value: Most auto insurance companies will pay just for the current value of your car in case of a complete lost, which means no matter what the car cost you the first time you bought it, the insurance company will calculate the real value according to the date and that would be the amount it would cover.

Commercial Use


This means that you use your car mostly for commercial purposes like sales, transportation of merchandise or transportation of employees; it also means that you use your vehicle for work’s errands like going to the bank or to the post office.

Deductible

The deductible is the amount of money you will have to pay every time you use your auto insurance policy before the company can cover any damage.

Endorsement

It is the modification used to suppress, add or change the policy.

Cancelation

It is the action of finishing a policy before the expiration date.

Claim

Claims can vary according to the situation, but overall is a petition to the insurance company to pay you an amount of money according the policy statements.

Declarations Pages

These pages have details of your payments and coverage, this kind of document is frequently sent by the auto insurance company to the policyholder at the beginning of the contract, or every time you make a change on you coverage plan.

Liability

It is a word used to refer to social responsibility, which means that if you ignore a traffic sign like a stop sign or a red light and as a consequence you cause an accident, you have to pay for yours and other people’s damages using your auto insurance policy.
Knowing these terms is very useful when reading or buying an auto insurance policy, so you can understand the contract’s details.