Search Results for: blog auto insurance policies 101 optional coverage gap

Insurance Terms: G

A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z GAP Insurance is additional automobile insurance policyholders might consider as an option, in some states. GAP insurance will cover the difference between a vehicle’s actual cash value when it is stolen or wrecked and the amount owed on a lease or to an auto finance company. General Liability Insurance is an insurance product designed to protect a business owner and operator … Continue reading →

Are You A High Risk to Your Auto Insurance Company?

One of the most important factors affecting your auto insurance premiums would be the kind of Risk you are seen as by an insurance company. Most insurance companies offer several levels of premiums based on the risk you and the drivers in your household are, and more factors decide this than you may expect. These are the major ones: Driving record. Everyone knows that an at-fault accident will increase insurance rates, but tickets and not-at-fault accidents can too. Insurance companies believe that for every speeding ticket you get, your chances of being involved in a traffic accident rise by 100%. … Continue reading →

The Contents of An Auto Insurance Policy.

Your automobile insurance policy is a binding legal contract. It’s very important to take the time to review your insurance policies and understand what your insurance means. Your personal auto policy will have five distinct parts. In most personal auto policy documents, some of these parts will be combined. This is what each section means to you, the insured: Declarations This section should be the first part of an auto insurance policy. This portion of the policy will be your personal information and details about the car insured on the policy. The declarations lists all relevant information about your personal … Continue reading →

Additional Auto Insurance Coverage

Most insurance companies offer a variety of additional services not required by law in any state. Automobile insurance endorsement is just a fancy term for the extra services an insured may add to their insurance policy. One of the best ways to insure your piece of mind is to consider adding some of these additional services. Many people find that keeping slightly higher deductibles on their Collision and Comprehensive coverage will save enough money to take advantage of the additional services and insurance coverage offered by their insurance company. Here’s what you get for your money: Auto Towing Insurance pays … Continue reading →

Auto Insurance Policies 101: Optional Coverage-GAP

An auto Gap insurance policy is important because a standard collision and comprehensive auto policy may only cover a new car’s “fair market value”. Fair market value may be as little as 80% of what you paid for your car, and starting the moment you drive it off the lot fair market value decreases. If you have financed your car and have a total loss your auto insurance may not cover the full amount you owe on your loan, and you could end up paying off a loan for a car you can’t even drive. This is where gap insurance … Continue reading →

Auto Insurance Policies 101: Optional Coverage-Comprehensive

Comprehensive automobile insurance coverage is very similar to collision insurance, because it covers the damage to your own vehicle and is not required under state insurance laws. Loan companies will request to be named as a lien holder on the insurance policy for a financed car and in many cases will set a maximum deductible for any damages covered by a comprehensive loss. The difference between collision insurance and comprehensive coverage is what causes the damage. With collision insurance the damages you cause in an at fault accident to your own car are covered and with comprehensive insurance damages caused … Continue reading →

Auto Insurance Policies 101: Optional Coverage-Collision

Collision is the portion of an auto insurance policy that specifically covers damages to your own vehicle. While collision insurance is not required by state insurance laws finance companies generally require you to insure for collision. Most finance companies will ask to be named as “lienholder” on your auto insurance policy for a financed car. Collision insurance isn’t required automobile insurance, but you may want the coverage to protect your car even if you have paid your loan off. Collision insurance covers the damages to your vehicle in an automobile accident, when you are “at fault”. The standard collision automobile … Continue reading →

Auto Insurance Policies 101: Medical Insurance & Personal Injury Protection

Auto Insurance Medical covers costs for immediate treatment of injuries caused by a car accident. You, your family members and other passengers in your vehicle are covered, no matter who is at fault. Depending on the policy terms, medical payments coverage may also cover lost wages and other services for a person injured in the car accident. Personal Injury Protection, (PIP)is similar to medical payments coverage, but usually provides broader coverage. Many PIP policies provide compensation for lost wages, funeral expenses, and pain and suffering. Most states that require personals injury protection are “no fault” auto insurance states, however Maryland, … Continue reading →

Auto Insurance Policies 101: Uninsured & Underinsured Motorist

Uninsured motorist insurance and Underinsured motorist coverage are types of insurance that protect you against damages and injuries caused in an automobile accident where the other driver’s liability car insurance coverage is inadequate. In most states neither uninsured or underinsured motorist coverage is required, but some states require one or the other. Both uninsured and underinsured motorists coverage is often required in “no fault” auto insurance states. Because of the different requirements from one state to another most insurance companies will automatically include both in their standard auto insurance policies. Uninsured motorist insurance and Underinsured motorist coverage are often lumped … Continue reading →

Auto Insurance Policies 101: Liability Coverage

Auto Liability Insurance – Protects you and your assets if you cause an injury to others or damage the property of others with your vehicle. The standard insurance policy usually describes the amount of liability coverage you have as a series of three numbers, called split limits. Typically, these are the first series of numbers listed on an auto insurance policy and the most common coverage is offered as split limits. The standard auto insurance contract with split limit coverage may read: Coverage A Personal Liability 50,000/100,000/20,000 Bodily injury liability is the first two numbers. $50,000/$100,000 in this coverage example. … Continue reading →