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Everyone needs it, but everyone dreads having to get it. It is imperative that you have adequate coverage, but yet you want to get the best deal.
The first step is to make sure you know exactly what coverage you need and be sure to know what your states requirements for coverage are. After knowing what you must have, then decide what else you would like to have, if anything.
Minimums, Maximums and everything in between--
So much lingo associated with auto insurance, do they do that on purpose to confuse us?
Here are some commonly used terms in the auto insurance market:
Gap Insurance: Typically recommended for leased vehicles and when small down payments on purchased vehicles.As we all know vehicles lose value as soon as they are driven off the lot, this coverage helps bridge the gap between what the value of the car is and what is owed to the finance company if the vehicle is stolen or in an accident.
Body Injury Liability: Covers the medical expenses that the policyholder does to others involved.
Claim: When an accident or other incident involving the vehicle occurs and a request is made for reimbursement or repair.
Collision: Covers damage done to the policyholders vehicle from any collision.
Comprehensive: Covers damage to the policyholders car that doesn't involve another vehicle This could be fire, theft, or mother nature.
Deductible: The portion you agree to pay when there is a claim filed. The higher the deductible, the lower the premium.
Uninsured/Underinsured Coverage: Coverage that is used in case you are involved in a collision with a motorist who does not have insurance or the correct coverage.
So how do I save money???
- Make sure to look into any discounts you may qualify for
- Know what is on your driving record & keep it clean
- Assume more risk on your policy (keep a higher deductible)
- Drive a car with lots of safety features and a low profile
- Shop around!! Don't just get the policy that costs the most, because you assume you are getting better coverage--the higher the cost of the policy, DOES NOT automatically equate to better coverage.
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