On the Road With Auto Insurance

Most states legally require you to have some degree of insurance. What are some of the most common types of auto insurance?

Liability—this is the primary type of auto insurance, as well as the mandatory type (for most states). Auto liability coverage pays for any damage for which you are legally responsible. It includes injury to a person, damage to another vehicle or other property in a car accident. There are two categories, bodily injury and property damage. Bodily injury liability covers medical expenses, lost wages, pain and suffering, etc. Property damage liability covers damage to property and can include loss of use. Liability also covers payment for legal defense and court costs.

Collision—this coverage helps pay for any damage to a covered vehicle caused by a collision with another vehicle, a collision with an object, or a rollover. Collision coverage requires a deductible*.

Comprehensive—this covers damages not caused by a collision. It includes damage caused by fire, wind, hail, flood, vandalism, theft or hitting an animal. A deductible may apply.

Uninsured motorist—pays for damages when a covered person is injured in a car accident caused by a driver who doesn't have liability insurance. Some states also allow for payment of property damage.

Rental reimbursement—covers the cost of a rental vehicle should your damaged vehicle be disabled due to an auto accident.

Tips for buying auto insurance
Chances are, when you were shopping for your car, you did your homework. You checked on dealers, pricing, options and other relevant matters. Well, why not use that same diligence when shopping for insurance for that very same vehicle? There are a number of things to consider when looking for auto insurance:
 

• How much coverage do you need? Certain levels are required by each state, and these amounts vary. Be sure to check with your state for its requirements: www.edmunds.com/advice/insurance/articles/43773/article.html. General recommendations for liability coverage above your state’s limits are $50,000 for one person injured in an accident, $100,000 for all people injured in an accident, and $25,000 for property damage. This is usually shown in a policy as 50/100/25.
   
• Be sure you look into a company’s discounts. Many times you’ll find discounts for a number of things, including multiple policies, driving record, occupation, level of education, safety features and others.
   
• Know where you stand before shopping auto insurance so you know what to compare. Look at a current bill from your present insurance company, and write down your coverage and cost. Now you know the figure to beat.
   
• Remember, cost shouldn’t be your only consideration. How is the company’s service? Are they reliable with paying claims? Click here for a survey of insurance company customer satisfaction courtesy J.D. Power and Associates: www.marketingcharts.com/direct/satisfied-auto-insurance-customers-renew-more-refer-more-switch-less-5878/jdpower-customer-satisfaction-index-national-auto-insurance-study-august-2008jpg/

Consider AAA Insurance through Vantage
As you're doing your homework on car insurance, don't forget to check out AAA Insurance for competitive rates and select discounts.

_{*A deductible is the part of a covered loss that you agree to pay for with your own money. If you file a claim with your insurance agency, you will pay only the amount of the deductible. When you choose a deductible, you must consider how much you are willing to pay out of your own pocket should you ever have to file a claim. In most cases, the higher the deductible, the lower the premium (insurance payment).}