From the Hoss's Mouth
Auto insurance is the feature article in today's edition of Hoss Cents Free Financial money magazine.
We purchase auto insurance to protect ourselves against unforeseen but not unpredictable events. Auto insurance can be costly, but there are ways to provide adequate protection while paying reasonable premiums.
Before purchasing insurance you should do extensive research and choose an appropriately licensed agent or broker who takes the time to first understand your auto insurance needs then recommends appropriate policy options. In addition s/he must fully explain your policy and coverage in clear, precise language. If s/he is not willing to do this, find another agent.
In most jurisdictions there is basic (mandatory) auto insurance and optional auto insurance. The type of basic insurance required varies from jurisdiction to jurisdiction but almost always includes:
Third Party Liability: If you injure someone else or damage their property in a motor vehicle crash and are held legally responsible, third party liability coverage pays their claims on your behalf, up to the specified limit shown in your policy.
Accident Benefits: If you are injured in a crash, you receive financial help with your medical rehabilitation and/or wage loss expenses. Also, in the event of death, funeral costs and death benefits are provided. The total amount of coverage will be outlined in your policy.
The optional insurance includes but is not limited to:
Collision: Usually covers damage to your car from impact with another vehicle, person, object or the surface of the road.
Comprehensive: Comprehensive insurance covers loss or damage to your vehicle by most causes except those covered by collision insurance. For example: fire, theft and vandalism. Check your policy for a complete list.
Auto insurance is a complex matter, and The Hoss is sure that by now you understand why you must work with a fully licensed agent who can fully explain all your options. Be sure to ask your insurance agent about increasing your deductibles, getting a package deal with your house, or if you own a car that is not worth a lot of money, carrying only the basic mandatory insurance.
These are all ways to reduce your premium.
You can also reduce auto insurance premiums by having an accident-free and conviction-free track record, and by reducing the number of kilometers (miles) you drive per year.
Safe driving.
Stay on track,
The Hoss
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