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Auto Insurance
Auto Insurance Coverage's Explained
Car Insurance -
We all want great prices on our car insurance, but when we have an accident,
it's even more important that we have a great company with great service
from our car insurance company. There are many great providers of car
insurance such as Progressive, Geico and AIG
An auto insurance
policy actually consists of several different cover ages.
Required in most states, it is something all drivers must posses.
Liability Insurance
This coverage is the basis of all auto insurance policies, and the minimum
required in most states. If you're found at fault in an accident, liability
insurance pays for the injury and property damage expenses of the third
party involved in the accident. Property damage pays for the replacement or
repair of anything that was damaged. Bodily injury expenses cover lost wages
and medical bills. If you cause a major accident, your current or potential
coverage may not cover you sufficiently. It is a safe bet to buy more than
the minimum required by your state.
Collision
If you're found at fault in an accident, collision coverage will cover
expenses needed to repair your vehicle. Collision coverage is usually the
most expensive component of an auto insurance policy, although it isn't
required. Insurance companies might proclaim your car a “total loss” if the
repairs exceed the market value of the car. When this occurs, the insurance
company will pay you the actual cash value, minus the deductible. From there
your car is off to an auction where it will be sold for parts or scrap.
Replacement Cost:
The amount required to replace your car or repair damages without
considering depreciation.
Depreciation:
Decrease in value because of age/wear on vehicle.
Actual Cash Value (ACV):
The value of your car when it is damaged or destroyed. Insurance
companies figure the ACV by subtracting the depreciation from the
replacement cost.
Tip:
In most cases, it’s better to choose replacement cost coverage. Although
higher in price, the protection may be worth it.
Comprehensive:
Comprehensive coverage will pay for damages to your vehicle that were
not caused by an accident. This includes fire, vandalism, theft, natural
disaster, and even animals. Depending on the damage, the insurance company
will pay the cars worth right before the incident. This is also optional
coverage.
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