WHY DO I NEED INSURANCE AND HOW DO I BUY IT?

LIABILITY:
IT IS A STATE REQUIREMENT TO REGISTER YOUR VEHICLE YOU BUY LIABILTY TO PROTECT YOURSELF AND THE ASSETS YOU MAY HAVE AQUIRED SUCH AS:

IF YOU HAVE CONSIDERABLE INCOME.
IF YOU HAVE PROPERTY.
IF YOU ARE BUSINESS OWNER.
IF YOU HAVE ANY ASSETS THAT CAN BE LAGALY ATTACHED TO.

THE MORE YOU HAVE TO PROTECT THE MORE LIABILTY IS WARRANTED TO PROTECT YOURSELF FROM A LEIN PUT ON YOU BY AN ATTORNEY DUE TO AN ACCIDENT WHICH MAY BE YOUR FAULT

UNINSURED MOTORIST COVERAGES:
THIS PROTECTS YOU IN THE EVENT THAT AN UNISURED MOTORIST HITS YOU, AND IS AT FAULT. THIS PROTECTS YOU AND YOUR PASSENGERS AGAINST BODILY INJURY, TIME LOSS OF WORK AND MEDICALS UP TO THE LIMITS THAT YOU PURCHASE.
HOWEVER YOU CAN NOT PURCHASE MORE U/M COVERAGE THAN YOU PURCHASE LIABILITY SIMPLY BECAUSE (IN LAY MANS TERMS) YOUR NOT WORTH MORE THAT THE OTHER GUY

UNINSURED MOTORIST PROPERTY DAMAGE OR COLLISION DEDUCTABLE WAIVER COVERAGE:
UNINSURED MOTORIST PROPERTY SCHEDULED ALONE WITHOUT COMPREHENSIVE AND COLLISION COVERAGES (PROTECTION FOR YOU CAR) COVERS YOUR VEHICLE IN THE EVENT THAT AND UNINSURED MOTORIST HITS YOU AND IS AT FAULT WILL PROVIDE COVERAGE YOUR VEHICLE UP TO 3,500 MAXIMUM, ANY POLICY.


IF YOU HAVE COLLISION COVERAGE SCHEDULED ON YOU POLICY THEN THE UMPD TURNS INTO A COLLISION DEDUCTABLE WAIVER REIMBURSING YOU FOR YOUR DEDUCTABLE ON THE REPAIR OF YOUR VEHICLE

MEDICAL (I LIKE TO CALL IT NON FAULT MEDICAL)
THIS COVERAGE PAYS YOU UP TO THE LIMIT THAT YOU PURCHASE (USUALLY 1,000 TO 5,000) PER PERSON PER ACCIDENT REGARDLESS OF FAULT OF THE ACCIDENT.

I SUGGEST PURCHASE OF THIS COVERAGE ESPECIALLY IN THE EVENT THAT YOU MAY HAVE A HEALTH INSURANCE PLAN WHICH HAS A COPAY.

LET'S SAY,BLUE SHIELD OR BLUE CROSS FOR EXAMPLE

IF YOU HAVE A 20% COPAY WITH A STOP PAY OF $10,000
THAN YOU HAVE TO PAY $2,000 FOR YOUR FIRST $10,000
WORTH OF HEALTH BENEFITS AND THEN YOU PAY YOUR ANNUALLY DEDUCTABLE 500,1000,2,000 WHICH MEANS YOU COULD HAVE AN OUT OF POCKET EXPOSURE OF UP TO 4,000 REGARDLESS OF FAULT IN THE ACCIDENT. THAT IS WHY
YOU WANT TO BUY ENOUGH MEDICAL COVERAGE TO COVER THAT OUT OF POCKET EXPOSURE.

WHEN YOU PURCHASE ANY INSURANCE THE SINGLE MOST IMPORTANT FACTOR I BELIEVE, YOU SHOULD CONCERN YOURSELF WITH IS HOW MUCH WILL IT COST ME TO GET BACK TO WHERE I WAS BEFORE THE ACCIDENT HAPPENED.

FOR THAT MATTER ANY INSURANCE THAT YOU PURCHASE HEALTH, RENTERS, DISABILITY, HOME OWNERS YOU THOUGHT PROCESS SHOULD BE. IF THE WORST POSSIBLE EVENT HAPPENED TO ME WITH MY CURRENT COVERAGE WHAT WOULD IT COST TO GET BACK TO 0 AND THEN WHAT WOULD IT COST TO COVER THAT EXPOSURE


COMPREHENSIVE COVERAGE:

THIS COVERAGE IS FOR THEFT AND VANDALISM ON YOUR VEHICLE
YOU PURCHASE THIS COVERAGE WITH A DEDUCTABLE WHICH MEANS YOU PAY A DED OF CHOICE (AT POINT OF SALE) WHICH IS USUALLY 250, 500, 1,000

THAT MEANS IF YOU INCUR A VANDALISM OR A THEFT YOU PAY THE DEDUCTABLE YOU PURCHASED AND THE INSURANCE CARRIER WILL PAY EVERYTHING OVER THAT DEDUCTABLE ON THE REPAIR OR REPLACEMENT OF THAT VEHICLE.

COLLISION COVERAGE:

THIS COVERS THE COST OF REPAIR FOR YOUR CAR REGARDLESS OF FAULT OF ACCIDENT. YOU PAY YOUR DEDUCTABLE THAT YOU PURCHASED AND THE INSURANCE CARRIER PAYS THE REMAINDER FOR THE REPAIR OR REPLACEMENT OF YOUR VEHICLE.

ON A TOTAL LOSS OF VEHICLE, ALL INSURANCE CARRIERS PAY TO A.C.V. (ACTUAL CASH VALUE) AT THE TIME OF LOSS

ACTUAL CASH VALUE IS ONLY DETERMINED BY THE INSURANCE CARRIER WHEN THE VEHICLE IS RECOVERED AND DEEMED A TOTAL.

THE A.C.V. IS DETERMINED BY ACTUAL MILAGE AND OVERALL CARE AND CONDITION OF YOUR VEHICLE. THE BETTER MAINTENANCE RECORDS YOU KEEP THE LOWER THE MILAGE ON PUT YOUR CAR AND THE ALL AROUND MAINTENANCE ARE ALL FACTORS IN DETERMINING THE A.C.V. OF THE VEHICLE.

RENTAL REIMBURSEMENT:

COVERAGE WHICH REIMBURSES YOU THE COST OF A RENTAL CAR. IF YOUR VEHICLE IS IN AN ACCIDENT AND YOUR CAR IS IN FOR REPAIR THE CARRIER WILL PAY SO MUCH PER DAY AGAINST THE COST OF THE RENTAL , THESE COVERAGES ARE AGAIN PURCHASED AT THE POINT OF SALE
20/20, 30/30, 20/30, 50/30 WHICH MEANS SO MUCH PER DAY FOR SO MANY DAYS

TOWING :

WILL REIMBURSE YOU UP TO THE AMOUNT YOU PURCHASE AGAINST THE TOW YOU MAY HAVE AT THE TIME OF ACCIDENT.

TYPES OF INSURANCE COVERAGE

STANDARD FORMS:
THESE FORMS USUALLY ARE POLICIES WHICH HAVE RESTRICTIONS WHICH ALLOW INSURANCE CARRIERS TO ELEVIATE EXPOSURES AND TO KEEP THE COST DOWN TO INSUREDS.
AS LONG AS THE RESRICTIONS FALL WELL WITHIN YOUR LIFESTYLE AND ARE DISCLOSED TO YOU AT THE TIME OF PURCHASE AND YOU ARE FULLY AWARE OF THESE LIMITATIONS THEN THE PURCHASE OF THESE POLICIES ARE FINE:

SOME RESTRICTIONS YOU MAY RUN INTO:
SUCH AS: NAMED OPERATOR RESTRICTION
THE POLICY WILL ONLY EXTEND COVERAGE TO
THE DRIVERS THAT ARE LISTED ON YOU'RE
APPLICATION


COVERAGE RESTRICTION TO OTHER VEHICLES
COVERAGE ONLY APPLIES TO VEHICLES LISTED ON YOUR APPLICATION DOES NOT TRANSFER TO ANY OTHER VEHICLES

PARTICIPATING REPAIR CENTERS ONLY
YOU HAVE TO USE REPAIR FACILITIES THAT YOUR CARRIER ALLOWS REPAIRS AT

BROAD FORM:

THESE FORMS ARE POLICIES WHERE COVERAGES FOLLOW.

NO MATTER WHAT DRIVER (EXCEPTION: HOME RESIDENTS NOT DISCLOSED) OR VEHICLE YOUR DRIVING INCLUDING RENTAL CARS ETC…
COVERGAE FOLLOWS YOU WHEREVER YOU ARE OR WHAT EVER YOUR DRIVING:


I HOPE THE ABOVE INFORMATION HELPS YOU AS A CONSUMER UNDERSTAND SOME OF THE COVERAGES PROVIDED TO YOU WHEN PURCHASING AUTO INSURANCE.

THERE ARE MANY MORE THINGS THAT CONTRIBUTE TO THE SALE AND PURCHASE OF INSURANCE POLICIES AND LEGALITIES TO WHICH AN INSURANCE CARRIER CAN AN CAN NOT OFFER CERTAIN COVERAGES AND WHY.

BUT A BRIEF UNDERSTANDING OF GENERAL COVERAGES CAN ONLY HELP SECURE A GOOD PURCHASE.

THANK YOU

 

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