by Landon McGehee
Few people pay much attention to their car insurance coverage, wrongly assuming that all insurance is created equal. While most insurance does include basic coverage of collision, liability and comprehensive, there are multiple other facets of car insurance that get overlooked and may not be covered by the cheaper policies. Let's examine all the different types of coverage and which ones will be most important for you.
Basic Coverage
Liability
This coverage is required of all car insurance policies in most states. This covers any injury or damages to a third-party caused by an automobile accident or other event involving your car.
Collision
This is coverage that covers the repair costs for any automobile damages suffered from an accident. This coverage is required of anyone with a leased automobile.
Comprehensive
This pays for damages to your car not related to a collision. This includes theft or vandalism, as well as fire or water damage. Comprehensive and collision may not be included or needed if you own your car, and especially if the value of the car is less than $5,000.
Advanced Coverage
Full/limited Tort
This provision allows you to reduce your insurance rates by a small amount in exchange for waiving your ability to sue a third party in the event of an accident. This is a case of the insurance companies looking out for themselves, and is not a wise thing to do for the small savings gained.
Towing
Towing coverage pays for your vehicle to be towed under many circumstances, but as this feature is also included with most roadside assistance programs, it may not be necessary.
Uninsured Motorist Coverage
This covers any medical or property damage expenses if you're involved in an accident with an uninsured or even underinsured motorist.
Gap
Gap insurance will cover the difference between the blue book value of your car and the amount still owing on the loan. This is valuable insurance for anyone leasing a vehicle with little or no money down, at least until a greater portion of the vehicle has been paid off. Otherwise you could be left with a large bill in the case of wrecking your car.
Factors Which Determine Your Rates
There are many factors which will determine the overall rates you're charged, beyond which coverage options you choose, and some of these may weigh more heavily with different insurance companies.
The first two are out of your control as they're based on your age and gender. The general rule is that the younger you are, the higher your rates will be. Men also generally pay more than women. Where you live will also affect your rates. Living in a higher crime area will raise your rates, the theory being that your car is much more likely to be broken into or stolen.
Of course accident prone drivers and drivers who rack up speeding tickets or tickets for other driving offences can all expect to have higher rates or see their rates increased. How you use your car as far as how many miles you put on it per day, and for what purpose you're using will also determine your rates.
Next is your vehicle itself. More expensive cars naturally cost more to insure, as do sports cars compared to more family oriented vehicles. The safety devices included with your vehicle, and the inclusion of an alarm system can help reduce your rates.
Closing
Though many people would like to assume that nothing bad will befall their car and that they'll never be involved in an accident, the truth is that most people will be involved in a situation or many in which their car insurance will come into play. Take the time to shop around and compare rates, starting with the internet, where there are many great sites that compare the coverage and rates of multiple insurance companies. These sites are great tools for finding the companies that offer the coverage you want, at the price you want.
About the Author
Landon McGehee understands why so many individuals just like you get frustrated with the topic of credit report credit card effects. Visit http://www.everlife.com grow and increase your education on the subject of money, debt and credit.
