Learning About Car Insurance (Part One)

How do you feel when you make your monthly car insurance payment? You probably don’t love it. We are willing to bet no one really loves paying for car insurance. However, it is one of those necessary facts of life. Car insurance is something you rarely think about until you actually need it. When you do end up needing to use your insurance policy, it can almost be lifesaving. We are here to ask you, when was the last time you looked closely at your car insurance policy? Do you know what you are paying for? Do you know exactly what you are covered for? Do you even understand all of the terms that are on your policy?

The fact of the matter is; most people do not understand car insurance. Here at VIP European Auto, we are not just experts at interiors, we are experts at everything having to do with cars. We make a point to be well informed about car insurance as well. By learning about car insurance, you can learn to optimize your policy. You can save money by holding on the features you absolutely need to hold. You can also ensure you are protected in worst case scenarios. Today, we are going to learn about car insurance by learning about specific car insurance terms. Without further ado, let’s begin by defining coverages.

Bodily Injury Liability: Bodily injury liability coverage is one of the two types of coverages that are required by state law. Bodily injury coverage protects you if you injure or cause the death of another individual while driving your car. Bodily injury liability coverage does no protect any damage done to your care. Here in Arizona, there is a minimum bodily injury liability coverage requirement of $15,000 per person, and $30,000 per accident when multiple people suffer injuries.

Medical Payment Coverage: Medical payments coverage will pay for the medical payments of the individuals who were injured in your car. Some medical payment coverage plans will also cover your injuries if you are hit by a vehicle while you are a pedestrian. Before adding medical payment coverage to your policy, you should take a close look at your health insurance policy. You want to make sure there are no overlaps.

Collision Coverage: Collision coverage is what most people think of when they hear the phrase, “car insurance.” Collision coverage pays for damage to your car when your car is hit by, or hits another vehicle or object.

If you need to use your collision coverage, you will first be asked to pay a deductible. The larger your deductible, the smaller your monthly premium payments will be, and vice-versa. It is important to note; collision coverage only protects you from damage incurred in collisions.

Comprehensive Coverage: Comprehensive coverage pays for damage inflicted to your automobile by anything other than a collision. Comprehensive coverage can pay for damage from theft, flood, fire, graffiti, or from animals. Talk with your insurance agent about your specific comprehensive insurance coverage policy to learn exactly what damage you are covered from.

Property Liability Coverage: Property liability coverage protects you when you cause damage to another person’s property with your vehicle. It can also protect you in the event of a lawsuit linked to damage you caused. It is advisable to hold high limits on property liability coverage.