Know Your Facts While Shopping For Auto Insurance-y580

Insurance Though most people treat buying auto insurance as a tedious chore, there"s no idea buying auto insurance if you cannot get the full benefit of it when you need it most. Here"s a list of often missed facts that you ought to know before you start shopping for auto insurance. Bluebook Value of your car: when you file a claim of your car, the blue book value is taken into account. Bluebook value is simply an appraisal of how much a similar car (make and model) with cost in your area. Insurance companies use this as a reference point to settle your claims fairly when your car is totaled. Often people want their insurance companies to reimburse them for the price they bought their car at, while insurance companies take into account wear and tear and depreciation of the auto over the years. Make sure you know the blue book value of your car when shopping for auto insurance. Car parts OEM and aftermarket "" Some companies pay body shops to replace damaged parts of your car with OEM parts while others prefer aftermarket parts. Check with your auto insurance company what their policy is, and then you will be able to understand one of the reasons for the vast difference in auto insurance quotes among different insurance companies. Make sure you know what is mentioned on your policy when shopping for auto insurance. Differentiate between your deductibles "" Some auto insurance coverages are bought with deductibles, which means that in case you ever make a claim against that coverage, your claim amount will be minus the deductible which you"re supposed to pay. Let"s take a scenario where your collision deductible is $500 while your comprehensive deductible is $250. Before filing a claim, calculate if it"s really worth filing a claim for that amount after paying a deductible. For example, your car gets damaged in a collision which will cost about $550 to fix; don"t make the mistake of assuming your comprehensive deductible ($250) will be used so you will only have to pay that amount while the rest will be borne by the auto insurance company. In this case, your collision deductible will be used for this claim, so it would make sense to pay of all the $550 from your pocket instead of using up a $500 deductible to gain only $50. If you"re not sure what coverages will be used to settle your claim, ask your agent or company rep, but know your facts before you claim. There"s no standard full coverage "" If you think that buying collision and comprehensive insurance coverages will fully cover your car against any damage or loss, you are sadly mistaken. In the event, your car is stolen, your laptop, smart phone, leather jacket, cds or iPod inside it will not be covered under your comprehensive coverage, these will probably be covered under your home insurance policy. You are always covered only against the events mentioned in your policy and nothing more. No coverage will guarantee that you will be covered against any and every eventuality. Two under rated but very useful coverages: Gap insurance- This is a very crucial coverage that can potentially save you thousands of dollars out of your own pocket if you still owe money on your car. True to its name, a gap insurance policy is bought to bridge the gap between what you owe your car dealer and what your insurance company reimburses you incase your car is totaled while its payments are due. Your car insurance company will only reimburse you for the blue book value of your car which may be significantly lower than what you have bought it for, since cars are known to depreciate heavily within the first few years of being bought. If you have Gap insurance, you will not have to make the balance payment from out of your own pocket and can tap your gap insurance instead. Check if your insurance company also provides gap insurance when shopping for auto insurance. However this coverage is of no use once you"ve paid off most of your auto insurance installments. Umbrella Insurance "" Umbrella insurance is a good investment if you have built significant assets in your name. This is a liability insurance policy that will protect your future income and assets beyond the primary limits of your home and auto insurance policies. In fact this policy is tapped to fill in any gaps between the coverages of your underlying policies. If, for example, your car gets into an accident and causes a person serious spine injuries where the treatment and loss of wages would cost thousands of dollars, or someone gets into a major accident on your property and decides to sue you for negligence, your umbrella insurance will cover all associated costs up to the policy limit, so that your assets are not tapped. Typically umbrella insurance policies are bought in multiples of $1 million and don"t cost too much, when you buy them from the same company that does your home and auto insurance. Since tailoring a sound insurance policy can be so stressful, make sure you do your homework well to make life simpler for you in case you ever need to claim. Your aim should be to work towards covering yourself against maximum eventualities at the same time keeping costs under control while shopping for auto insurance. About the Author: 相关的主题文章: