Insurance buying Made Easy

In General, car insurance is any kind of insurance pertaining to the ownership, maintenance, or use of an automobile.  Auto Insurance rates vary greatly depending on

Age, Gender, Model, and driving experience.  Many online firms such as GEICO INS and ESURANCE insurance have discounts for safe drivers.  


Specifically though, car insurance is protection people buy for basically two reasons:  1) To pay for damages they do to their own car by no fault of anyone else.  2) To pay for damages they do to other people and other people's cars by crashing into them.


The cost of the damage done to cars and property are usually limited and relatively easy to calculate or measure.  However, by comparison, the cost of bodily injury inflicted on others by a speeding ton of steel is seldom limited and ordinarily very hard to calculate.  How do you value the pain suffered from broken ribs, head trauma, internal bleeding, a broken leg, and a fractured hip?  Thus, people should theoretically carry very high limits of liability insurance.


In example given above, about the two main basic reasons people buy car insurance, reason number one is referred to as Physical Damage coverage.  This is always required by lenders or banks who finance a car purchase in order to protect their financial interest in the subject property (the car) in the event the car is stolen or completely ruined and rendered worthless.  Physical Damage coverage is normally subject to a Deductible.


A deductible is the first portion of the loss that the owner of the car is responsible for.  Another way to look at it is this:  The deductible is the amount of money which will be subtracted from the amount which the insurance company will pay for the total damage incurred.


Full Glass Coverage is an optional coverage offered by some insurance companies and refers to a clause in the insurance policy which basically says that the insurance company will waive the deductible (so another words, you would have a $0 zero deductible) for breakage of the car's glass, most commonly the windshield.)


Uninsured Motorist Coverage is an optional coverage in most states and generally varies by state, depending on the state's laws.  But essentially Uninsured and Under-insured Motorist Coverage provides protection for the insured from losses suffered for bodily injury or property damage caused by someone without insurance, or someone with too little insurance.


Medical Payments Coverage is another optional coverage in most states and generally pays the medical expenses of the insured and any passengers injured in the car, regardless of who was at fault.  It also pays medical expenses for the insured and the insured's immediate family members injured while passengers in any other car, or struck by a car whether they were in a car or simply walking down the street.  In some no-fault states, medical payments insurance has been replaced by Personal Injury Protection (PIP); in other states it may supplement no-fault insurance.  [Always consult your state's specific Department of Insurance website for complete and timely information about this and other insurance coverages.


Personal Injury Protection, also known as no-fault insurance, provides coverage for medical costs, lost earnings, additional living expenses, and funeral costs for occupants of the insured vehicle, and pedestrians other than those insured under other policies.


Rental Car Coverage is an optional coverage that reimburses the car owner for the cost of a rental car generally while the wrecked car is being fixed or replaced.  Beware: There are limits to the amount of this coverage.


Towing Coverage is an optional coverage that reimburses the car owner for the cost of towing the wrecked car generally from the scene of an accident to a repair shop.  Again, beware:  There are limits to the amount of this coverage.


Some states compel or require drivers to carry a minimum limit of liability insurance, so be sure to check with your state's Department of Insurance or a well qualified, licensed insurance agent in your state to learn about your requirements.