Reader’s Question:

What are the usual insurance coverage policies available in the United States?

Benjamin

Anaheim, CA

There are various types of insurance for vehicle available in the US. The most essential type of vehicle insurance in the country is the liability coverage, which covers injuries and damages that may happen during an automobile accident. This type of insurance has two kinds- property damage liability and bodily injury liability.

Another kind of insurance for vehicle that is available in the US is medical coverage, which focuses on medical insurance for drivers and passengers of the vehicle involved in an accident. This coverage includes essential medical treatment for drivers and passengers. It can also cover for disability insurance as well as pain compensation.

There’s also uninsured motorist insurance coverage which protects the driver and passengers involved in a vehicle mishap with a driver who has no insurance policy. It can also cover for hit-and-run collisions.
Another type of insurance for vehicle is collision coverage which covers the expenses of car repairs. Then there’s comprehensive insurance which covers against various damages resulting from natural disasters, vandalism, and theft. This is usually recommended to older types of vehicles. There are also insurance policies against towing, glass replacement, and car rental.

Reader’s Question:

I am trying to find a vehicle insurance. This is my first time getting one and I don’t have much idea. I heard that they could be pretty expensive. Can you give me some information about insurance premiums?

Luisa

Birmingham, AL

Prices of everything in the market always increase nowadays. With all the bills we have to pay and all the basic things that need to be covered first, vehicle insurance cost has just been an added burden for many of us.

What we all don’t know is that vehicle insurance cost doesn’t have to be a huge part of our expenses. There are so many insurance companies in the market that offers cheap vehicle insurance policies that would suit every budget. Depending on the type of insurance you need and the coverage it gives, insurance premiums cost varies.

Vehicle insurance cost can also be lessened from all the discounts various insurance companies provide. Depending on what type of driver you are, there are specific discounts that apply for you. Generally speaking, things like type of car, protection accessories of the car, and good driving records could earn you big discounts when getting vehicle insurance.

You could always find good vehicle insurance cost if you know where to look. Right now, the Internet is the hottest market place for almost anything and everything. Start your search here and you could surely find a good value of the insurance that you need.

Reader’s Question:

I’ve saved up enough money from my new job, and I’m planning to get the best SUV money can buy. I don’t want to hold back on the insurance, and I don’t care how much I’ve got to pay as long as my car is going to be well insured. How do I know what’s the best vehicle insurance I can get?

Albert

Denver, CO

It is understandable that you want your prized SUV to as well-protected as possible. However you may not want any insurance company to know this fact. Just think over carefully what you need, and that will define the best vehicle insurance policy you can get.

Liability vs. Coverage
Liability deals with compensating for damage that you may deal to others, while coverage deals with compensating for the damage that is dealt to your car. If the protection of your future SUV is your priority, you may want to increase the coverage on your car’s safety. This includes collision, comprehensive, uninsured/underinsured, loan-lease or GAP, and towing coverage.

Deductibles vs. Premium
You can make a choice to either reduce your monthly premiums by raising deductibles, or increasing premiums by lowering deductibles. If you have a sufficient amount of money in hand and consider yourself a safe driver, raising deductibles is a smart choice. If you’re short on cash in the bank or if you don’t have confidence in your driving skills, then it may be smarter to prioritize getting more coverage over paying a lower premium.

These two sets of factors are the basic stuff that you may want to consider in choosing the best vehicle insurance policy for your new SUV and for yourself.

Reader’s Question:

Hey, my cousin in New Jersey recently got into an accident. He rammed straight into the backside his neighbor’s parked car when he ran over this pot-hole at pretty high speeds. What’s weird is my cousin’s insurance company didn’t have to pay for the repairs to his neighbor’s car. Why? I thought if you were at fault, you’d have to pay for everything?

Nina

Charlotte, NC

There is a type of accident insurance in some states in the US that indemnifies the policy-holder whether he or she is at fault or not. This is called a no-fault vehicle insurance policy. You could ram into another person’s car, and everyone would pay for their own damage regardless of who’s at fault.

The justification behind this accident insurance scheme is that it minimizes the length of time and monetary costs required to find out who’s really at fault. Determining who’s the liable party in a traditional tort (or fault-based) vehicle insurance policy is a messy legal affair, and what you’ll end up paying a lawyer in a lengthened legal battle would probably be more than the damage you’ll have to pay in the first place.

It may sound good for a person who gets into an accident, but the same happens for the guy who gets into an accident. Those who aren’t at fault and under a no-fault vehicle insurance policy will not be able to seek recovery from the parties responsible for the damages. That means if you get rammed by another driver, and you end up pretty messed up, you can’t pursue the other guy in court.

Reader’s Question:

How come my auto insurance agent gives me some bull that their company won’t cover the damage to my car when it got torched by some punk kids? I thought that’s what vehicle insurance coverage is for: to reimburse the damage I inflict or is inflicted to my car! Then why isn’t my insurance agency paying up!?

Mike

Seattle, WA

Collision coverage handles any damage you may receive or inflict in the occasion of an accident, while comprehensive coverage other non-accident related incidents like theft, fire and vandalism.

If you don’t have comprehensive vehicle insurance coverage, and have been paying only for collision coverage, then you are, unfortunately, not going to be able to get anything from your insurance company.

It’s really difficult to rely on the words of an agent alone. Words can be manipulated, forgotten and falsified. That’s why verbal agreements can’t really be counted on when making a deal with an auto insurance agent.

The only thing you can do right now is to carefully review the terms that you and your auto insurance agent wrote in paper when you signed the contract with your insurance company, in addition to the bills you’ve been paying to your insurance company. If you’ve been paying for full vehicle insurance coverage, then both collision and comprehensive coverage should be included in your insurance policy.

If you find out that you’ve been paying for full vehicle insurance coverage, where your comprehensive coverage specifically states that damage to your car will be reimbursed when caused by non-accident related damages, then you’d better call up your lawyer to set things straight.

Reader’s Question:

I have been on a tight budget lately, and things are not looking good since I have to buy new vehicles insurance for my cars. Are there any ways for me to get lower insurance premiums?

Mike

Los Angeles, CA

There are a lot of ways for car owners like you to get discounts on vehicles insurance. For instance, you can save a few dollars if you buy an insurance directly from the website of a certain automobile insurance firm.

If you are an engineer or a scientist, you can also be entitled to as much as 30% discount from regular vehicles insurance policy. There are also discounts for various groups such as professional associations, alumni associations, and credit unions.

If you have a good driving history, you are also eligible for certain discounts from selected automobile insurance companies. The same goes if you own multiple vehicles.

You should also give your vehicle a boost in security by installing it with anti-theft devices and security locks. Most automobile companies rate highly drivers and car owners who have installed such items on their vehicles.

Also, if you have a good credit rating, then you will surely get lower premiums and rates since it shows that you are responsible in terms of finances.

Reader’s Question:

I still have to purchase a car insurance for my car. I am about to get one in the next couple of weeks.I’m just curious, if I get involved in a vehicle accident which is fully not my doing, will the other party pay for the repair expenses of my car assuming I don’t have any vehicle insurance?

Brad

Charlotte, NC

The idea of liability on accidents is a very difficult topic to discuss. For one, most people wouldn’t admit that a certain accident is their fault. If ever they would, lucky you because then the party at fault’s insurance policy will pay for any damages or repairs of your car. However, if in case both of you agree to being at fault for the accident, then the other driver will be settling only the share of his or her damage. So you will be left shouldering your own expenses for your car’s repair.

Do not leave anything to chance. You should not count on the other party to have basic vehicle insurance policy. Not having vehicle insurance is against the law, so you should be wise enough to purchase it. Remember that not having automobile insurance may result to you paying a substantial amount as well as revocation of you license and suspension of your vehicle registration. It can also land you in jail. Also, imagine if the other party involved in an accident doesn’t have any insurance too?