Depending on the car you are insuring, your age, sex, where you are going to keep it parked and years driving, these are all factors when you’re choosing the type of insurance coverage for your vehicle. Young new drivers will have higher rates and may be required to have certain deductibles. New cars that are financed will need full coverage where older cars only need liability.
These are all so confusing and frustrating at times when determining what you need and what it will cost you in the end. After all, we are paying for the car and that’s a big expense and we will be affording the gas and that is another big expense even for those who get the higher mileage.
Here are a few of the different types of coverages and what options they include.
Full Coverage Insurance Includes
Liability includes: (this covers the other person when you are at fault)
- bodily Injury
- Property Damage
- Excess Medical Payments
Physical Damage includes: (fire, theft, vandalism, and glass breakage)
- Comprehensive – less deductible
- Collision – less deductible
Uninsured Motorist: (when it is their fault this covers you and your vehicle)
- Uninsured & Under-insured Motorist(s)
- Bodily Injury
When you have financed your car with a lender you must carry full coverage.
This is the amount of money that you will pay out of your pocket before the insurance company will begin paying their part. The “usual” amount paid is $250 for your uninsured motorist. If there is an accident and it is their fault, you will pay $250 first and the insurance company will then pay what ever the remaining balance of the repairs are.
Whether or not you pay the higher or lower deductible is dependent upon how much “out of pocket” money you think you will have if an accident should occur. I personally pay the $500 which is about middle bracket, it is higher than I would like but hopefully I will not have to come up with the money and driving safely and by the book is a good way to avoid an accident.
There are many other things to know in order to make a well educated decision and I can not list all of them here but this covers the majority of the most important things you need to know. I have had car insurance for over 35 years and have insured with several different companies and have developed an expertise if you will over all these years.
Other source: Automobile Club of Southern California