Basic Automobile Insurance

It may be tempting to drive around without automobile insurance in Indiana, but this is never suggested. Your insurance I.D. card, which every insurance company in the state must issue with a new policy, is required when you go to register your vehicle. It’s also mandatory that you present it if you are stopped by a police officer or if you need to appear in court because of a traffic violation. There is a way to find low cost automobile insurance in Indiana and it involves comparing rates.

Many people make the mistake of calling a well-known automobile insurance company, getting a quote and purchasing a policy. Although it’s obviously important to have a well-respected company handling your insurance needs, there are many companies in the state of Indiana that offer well priced automobile insurance. Therefore it’s essential to call or contact at least three or four to receive quotes. Prices can vary quite a bit from one company to another and you may be surprised by exactly how much you can save.

Before you do call any agents to get quotes ensure that you have all the necessary information nearby. This includes your vehicle information including the make and model, your own driving history, and the driving history of anyone else you plan on insuring on the policy. If you have a spouse or partner who also has a vehicle of their own, ask for an additional quote that includes their vehicle. It’s often cheaper to purchase one policy that covers all the automobiles in the home, than it is to purchase separate policies for each driver.

You may find that overzealous car insurance agents will try and sell you a policy that includes coverage you simply don’t need. The best way to deal with them is to be firm, but polite and clear on exactly what you do need.

Limited Tort, Stacking, Uninsured Motorist Coverage, Deductible, the list goes on and on. These are all terms that are present in your automobile insurance policy, but I have found that many of my clients do not know or understand what these terms mean. This article will attempt to give you a basic understanding of common Automobile Insurance related terms.

Limited Tort is the big one these days. Most people have heard of it, but few know what it means. Limited Tort is a selection on your automobile insurance policy that essentially waives your right to sue another driver for pain and suffering if you have been injured in an accident. Hopefully, that caught your attention. By selecting Limited Tort, you are agreeing that you cannot sue another driver for pain and suffering if you are injured in an automobile accident. I have found that many of my clients, or potential clients, have selected the Limited Tort option without a true understanding of what it means. They do so because selecting that option saves them a few dollars on their insurance premium. The savings, I have found, amount to approximately 5 to 10 percent of the total policy premium (that is merely an estimate, contact your agent for exact savings). To some, that is a sizable savings, but to others, at least those who understand what Limited Tort means, that is a risk not worth taking. There are a few exceptions that will allow you to sue a driver if you have selected the Limited Tort option, but those are for another article.

Uninsured Motorist Benefits are benefits that cover you if you are injured by another driver who does not have automobile insurance coverage, or if you are struck by a phantom vehicle (a hit and run vehicle). These benefits are meant to provide you with compensation for lost wages and/or pain and suffering that you incur as the result of a vehicle accident.

Underinsured Motorist Benefits are benefits that cover you if you are injured by another driver who does not have enough automobile insurance coverage to adequately cover you for your injuries and damages. For instance, in Pennsylvania, the minimum amount of insurance coverage that a driver must carry on his policy is $15,000 for personal injury. If you are involved in an accident with a driver who maintains only the minimum coverage, and you sustain a serious injury, $15,000 will likely not fully compensate you for your injuries. In this instance, you would file a claim for Underinsured Motorist Benefits to attempt to receive additional compensation.

The next automobile insurance term that we want to look at is Stacking. Stacking is the combining or adding of either Uninsured Motorist Benefits or Underinsured Motorist Benefits. Stacking means that you can collect from either more than one auto insurance policy that you hold, or that you can collect the limits of your policy for each vehicle that is covered by your policy. In the first instance, if you are injured you by another driver who fails to maintain automobile insurance, you can bring a claim against your Uninsured Motorist coverage on the vehicle that you were operating. If you own a second vehicle, that is insured with another company, you can bring another Uninsured Motorist claim against that policy, if your injuries and/or damages are substantial. Another variation of stacking is where you own more than one vehicle on a policy. If you have selected stacking, you can receive the equivalent of your policy limits for each vehicle that you have on your policy, if your injures warrant that.

The final term for today is Deductible. A Deductible is the amount that you have to pay for damages to your car if you are involved in an accident that is your fault. Your insurance company will pay for any damages amounts that exceed the deductible amount that you have chosen. A typical deductible is $500, though other options include $100, $250 and $1,000. Typically, the higher deductible that you choose on your policy, the cheaper your premium is.

There are criteria or group of vehicles that get lower premiums with respect to auto insurance. These vehicles have been assessed and seen to be the best in the areas of safety and statistics with respect to their loss history. Vehicles that are more likely to get stolen or broken into carry the highest premiums while safety, which is always a priority plays it’s part in the whole equation. Auto’s that are evaluated and approved by the Institute for Highway Safety are some of the best while those who don’t make the mark get higher if not the highest premiums. Don’t expect any discounts and low premiums for your Enzo for that’s dreaming alright. Stick to the All-American brands and some imports that are at par with safety standards. They are the easiest and best ones to insure and you get to pay less too.

That would depend on you for like the insurance package you choose for your vehicle it may vary from company to company. There are some very useful add-ons like free towing and labor if your car breaks down and has to be repaired. Another thing is that if you rent your vehicle to neighbors or friends regularly, you can also get rental coverage in case the vehicle in question gets stolen while outside of your care. The last add on is called a Gap coverage which is the coverage of the payment of the difference between the actual cash value of your vehicle and the amount left on your loan just in case you total your car.

Statistics from all over the world show that millions die in automobile accidents each year. That number steadily increases due to the ever-increasing numbers of automobiles that hit the streets everyday. Automobile Insurance offers protection from the financial requirements needed in case of an accident occurring. It can be as minor as a fender bender or major enough as to claim someone’s life whichever the case, liability is assured. Now you wouldn’t want to be caught empty handed when that happens or you could end up in the slammer with some other hefty penalty levied unto you. That’s where insurance comes into play, for it takes care of the liability part from the insured lessening the strain and stress of having to take care of everything themselves. The insured might not be spare all costs due to participation charges for no insurance or business in their right mind would totally pay for the liability of an individual(or it wouldn’t be called a business) totally.