Auto Insurance Basics

Most people only think that insurance is something they need so they can get their registration and tag so they can drive. It is something that they need because their license will be suspended if they don't get it. It's just a bother to some because people think "I don't get into accidents, I am a careful driver."

Often times people will call for insurance and say give me the cheapest insurance or give me only what is required. Many people don't even know what this insurance coverage this is. A lot of people only really become aware of what coverage they have when they need it, like when they need to make a claim.

When you run into that stopped car or have someone sideswipe your car in a parking lot while you are shopping, suddenly having only the coverage is required by law may not be the best thing to have. You should always have as much insurance as you can afford to carry. Having too little is never good and if you have insurance you cannot afford is not any better. A policy that is cancelled due to non-payment does you no good at all.

Lets take a look at the state I am familiar with - Florida. Florida is a no-fault state. What does this mean? Well, if you have the proper state required coverage you will be protected by the no-fault law. If you are in an accident whether you are at fault or not at fault you will go through your own personal injury coverage for your medical expenses for the first $10,000. If you do not have at lease state minimum insurance then you will not be protected and may be subject to paying for the injuries of the other people you hurt in the accident.

There are many types of coverage to purchase and meet your insurance needs. Every coverage has a purpose and all are good to get.

Florida state minimum insurance is Personal Injury Protection and Property Damage. Personal Injury Protection or P.I.P. covers your medical, hospital and funeral expenses up to its limits. It also covers others in your vehicle and pedestrians struck by your car. You are covered for up to $10,000. There also may be a deductible. This can be 0, 250, 500 or 1000 deductible. A $1000 deductible being the minimum in Florida.

Property Damage liability covers if your vehicle damages another person's property. This could be their car, house, motorcycle, etc. Limits for this are $10,000, $25,000 or $50,000. The Minimum in Florida is $10,000.

Another valuable coverage is Bodily Injury Liability. Bodily Injury covers other people's injury or death that you are responsible for up to the limits you purchase. This is not required by Florida for state minimum insurance, but it would satisfy another law called the Financial Responsibility law. This law states that if you are not financially responsible at the time of and at fault accident where someone gets injured or property damage occurs, your license may be suspended. At this point you may be able to get your license back by filing an Sr-22. This form shows to the state you are now carrying Bodily Injury Coverage and are now financially responsible. Usually you must carry this for 3 years with no lapses in coverage.

Another common insurance people ask for is Full Coverage. This is not an insurance coverage and means a different thing with every company you call. Most people only know that their car dealer or bank wants Full Coverage so they ask for it. Comprehensive and Collision is what these companies are looking for. Collision covers repairs when your vehicle hits or is hit by another vehicle. If it is destroyed it will also pay up to the book value of the vehicle at the time of a loss. Comprehensive covers for loss caused by other circumstances other than a collision. Some examples are theft, flood, fire or animal damage. This will also cover total losses up to the book value of the vehicle.

Other types of coverage available are medical and Uninsured Motorist. Medical covers medical costs to you and your passengers injured in an accident. Uninsured Motorist covers injuries to you and your passengers when the other person in the accident is at fault but does not have insurance or does not have enough insurance.

These are just some of the basics about the insurance there is more detailed information about each coverage at the Learning Center at http://www.carinsurance.com. But this information should give you a good idea about what type of coverage you might need to research more or be ready to purchase. Knowing the basics is your first step on making smart purchasing decisions!

Visit http://www.carinsurance.com for Automobile Insurance

James Diaz is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.

Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online... anytime!

---

Health Insurance And Insurance Brokers

If you are in the market to purchase your own... Read More

How Does Credit History Affect Car Insurance Rates?

Many personal car insurance companies consider your credit information when... Read More

How To Best Handle Health Insurance Plan Changes

Many economists have suggested and recent economic data indicates that... Read More

Insurance For All Your Gadgets

Personalisation, Digitalisation, Mobilisation, these 3 words represent your life today.... Read More

Finding a Discount Car Insurance Broker

Discount car insurance brokerTimes past finding a discount insurance broker... Read More

Why Boat Insurance Is A Necessity

Boat insurance is necessary for all boat owners who live... Read More

Six Ways to Cut the Cost of Your Auto Insurance

Is your auto insurance bill $12000 a year or even... Read More

Private Medical Insurance- Finding The Right Policy for You

Why Private Medical Insurance Is Becoming So PopularRecent research indicates... Read More

Are Accidents More Likely To Occur Closer To Home?

If you are going to be involved in an accident,... Read More

How To Get Cheap Whole Life Insurance Quotes

Whole life insurance quotes the most expensive kind of policies... Read More

Long Term Care Insurance

Long Term Care Insurance is needed in the event that... Read More

Insure Your House

When we talk about insurance the thing you have to... Read More

How Do I Lower My Auto Insurance Premiums?

It seems as though the price of everything is on... Read More

Is Life Insurance Comparison Really Necessary?

When you want to purchase a life insurance policy, you... Read More

Term Life Insurance on Your Business Partner

Life insurance is something we often take out to protect... Read More

Discover the Fortune Hiding in Your Insurance Premiums!

Ever thought about how to save money? Sure you have,... Read More

What is Life Insurance?

Life Insurance is an insurance policy that provides an agreed... Read More

Compare Car Insurance Companies Before You Commit

If you want to save money on your car insurance,... Read More

Term Life Insurance Help

Life insurance can be a very scary thing. If you... Read More

Apply Online for Temporary Health Insurance

There are times when you'll find yourself temporarily without health... Read More

Cheap Car Insurance ? 7 Tips To Reduce Your Car Insurance Costs

With the cost of car insurance becoming more and more... Read More

Do You Know What The 7 Home Insurance Plans Are?

Most people don't realize that there are 7 different homeowners... Read More

Term Life Insurance - Buy Term and Invest the Difference!

The phrase "BUY TERM AND INVEST THE DIFFERENCE" evolves around... Read More

Everybody Wants The Best Term Life Insurance Quote

The information you need about the best term life insurance... Read More

The Ups and Downs of Temporary Health Insurance

If you're a recent college graduate, or in between jobs,... Read More

Life Insurance Providing Little Protection from Terrorism

Recent statements by the City of London Police Commissioner James... Read More

Cheap Auto Insurance Quotes ? Tips For Getting The Lowest Rate

Finding auto insurance quotes online is easy, but finding the... Read More

Handling Your Motor Vehicle Accident With Your Own Insurance Company

This "How To" article is crucial, up-to-date information concerning what... Read More

What Is Term Life Insurance?

There are two different types of life insurance, term life... Read More

Health Savings Account (HSA): Useful for Women in Childbearing Years?

The Health Savings Account (HSA) is an amazing tool that... Read More

Auto Insurance for Young Drivers

The biggest worry of most parents today is their children... Read More

Everyone Wants The Cheapest Automobile Insurance Quote

When you are looking for an automobile insurance quote, the... Read More

About Accidental Death Dismemberment Insurance Quote

We don't hear much about getting an accidental death dismemberment... Read More