Autosonics Autobody & Collision

Insurance information for consumers

What Is Meant By Automobile Insurance Standard Coverage?
By Tim Gorman

Automobile insurance standard coverage is the basic amount of insurance coverage that is required by law in order for an individual to legally operate a motorized vehicle.  You can simply it even further with the blanket statement as being the mandatory amount of auto insurance coverage a driver must possess.

The most important part of anyone’s car insurance policy is the liability coverage.  This coverage protects the consumer against the cost of damages and injury that is a direct result of that same consumer if they are the cause of a vehicular accident.  For instance if you’re driving down the road and accidentally run into another person’s car this insurance coverage will pay for the damages that result due to the accident.

The liability coverage is further broken down into two subsections.  The first is bodily injury liability.  This covers and personal injury inflicted by yourself upon others during a car accident.  The second subsection is property damage liability.  As you may have guessed this is your insurance protection against any damage you cause to another individuals property, usually their car.

Although coverage amounts can vary it is generally suggested that a good baseline of automobile insurance standard coverage should be 100/300/100.  This can be read as $100,000 worth of bodily injury caused to another person, $300,000 towards bodily injuries for everyone involved and $100,000 for property damage.  With rising medical costs and outrageous car prices this would be the absolute minimum insurance protection I would personally carry in my automobile insurance standard coverage.  However, each state is different and you will need to check to see what their car insurance laws constitute as a minimum coverage amount.

If you are in a financial crunch and need a way to save money on your insurance policy try to avoid retaining only the minimum amount of coverage required by your state.  Instead try raising your deductible amount (the amount you pay first in the event of an accident before your insurance company kicks in with its payment).  You will find that by raising the amount $500 or $750 will significantly lower the monthly costs of your automobile insurance standard coverage.

Two other policies that exist include the medical payments insurance which provides for the immediate treatment of injuries sustained during an auto accident. Anyone riding in your vehicle to include yourself is covered, regardless of who is at fault for the accident.  The second policy is commonly known as PIP or personal injury protection, is similar to medical payments coverage, but usually provides broader coverage. Many PIP policies provide compensation for lost wages, funeral expenses, and pain and suffering.  Again you will need to check with your state insurance laws for further clarification if you are required to have this additional coverage.

Finally as a safety measure against law breaking individuals who illegally drive without insurance there is uninsured motorist insurance when the other driver has no liability coverage and underinsured motorist coverage which pays for the cost of your injuries that exceed the other driver's coverage maximum.  As before with the PIP coverage you will need to make sure whether or not your particular state requires these forms of coverage as part of their automobile insurance standard coverage.

Timothy Gorman is a successful webmaster and publisher of Best-Free-Insurance-Quotes.com. He provides more insurance information and offers discount home, life and auto insurance that you can research in your pajamas on his website.

Other websites operated by Tim

Cellular-Phone-Solutions.com - Free information and resources regarding cell phones and cell phone plans.

Military-Loans-Online.com – Which provides free money saving loan quotes on your entire loan needs to include home equity loan information.

Article Source: http://EzineArticles.com/?expert=Tim_Gorman

I Was In An Accident, Will My Car Insurance Rates Go Up?
By A. Chris Tijerina

You were on the phone, got distracted and before you knew it traffic had stopped, giving you no room to stop and you rear end the girl in front of you. Or, let's say you're driving along and a deer jumps out and rams into the side of your door.

Now, let's say you need to file and claim and get your car fixed. But, are your rates going to go up?

In the first case, more than likely they will depending on how much your insurance company pays out to fix both cars and medical bills if anyone was injured.

But, in the second example, since this will be a comprehensive claim your rates should not see an increase at your renewal. Unless you have a long history of hitting deer then the people from PETA will be out to get you. Or if you file a lot of small glass damage claims then your rates could be affected or you may have to pay a higher deductible for comprehensive in which case small glass damage will be less than your deductible and you will pay out of pocket.

Part 2: How long does an accident stay on my record?

Ok, so back to the example where you rear ended someone. We have already established that you are going to see your insurance rates go up. Now, we need to find out how long and how much will they go up.

State insurance boards usually allow insurance companies to charge for a accident for 3 years from the day they started charging for it. Not from the time you got into the accident. You got in the accident in December and your policy runs from October to April. Your rates won't be affected until April of the next year and the surcharge will drop off 3 years from that April.

How much will your rates go up? Are they trying to get back the money they paid out for my claim? You can usually expect a rate increase of between 20-40% on average per six months. They could go up even more if you lose some discounts you were getting, such as a claim free discount.

The increase is not a recoupment of the monies paid out by your insurance company. It is designed to charge you a premium based on the risk, or chance, that you will get into another accident in the next 3 years. You are a higher risk to the insurance company and they are able to charge you for the higher risk you present to them.

If it was based on how much the insurance company paid out then you wouldn't be able to afford it if you totaled out your 2004 Nissan Maxima at $25,000 and you had to pay that back within the 3 year surcharge period. Makes sense? Good, now get off the cell phone!

A. Chris Tijerina has over 3 years of experience in the auto insurance industry and has seen many different people deal with auto insurance related problems.  http://www.insurance-for-cars.com answers many of the questions facing drivers today.

Article Source: http://EzineArticles.com/?expert=A._Chris_Tijerina