If you have an older vehicle, then $25,000 is probably adequate or certainly no more than $50,000. If you have a very expensive new vehicle, you want to make sure the coverage is more than the cost of your vehicle. You may select $100,000, for instance. Many people who carry $100,000 property damage liability coverage carry the same limits for uninsured/under insured motorist property damage coverage. Depending on the value of your vehicle, it is probably not necessary. Save a few bucks and only carry what you need.
This coverage, like most physical damage coverage, is subject to a deductible. Usually this deductible is $250 or $500. The lower the deductible the higher the cost. This coverage is redundant with collision coverage, but most people have a higher collision deductible. So if you are in an accident with an uninsured motorist, make sure you collect under the correct coverage.
The next coverage listed on your policy is comprehensive, or other than collision. This covers your vehicle for perils such as hail, wind, malicious mischief, total theft and hitting an animal. The price you pay for this coverage is based on the value of the vehicle and carries a deductible. The lower the deductible, the more you will pay for the coverage. Once your vehicle reaches 10 years old, you really need to consider whether it is still feasible to carry this coverage. That decision should be based on the value, condition and garaged location of the vehicle. You really need to weigh the cost of the coverage versus the value of the vehicle.
Collision coverage is pretty self explanatory. It covers damage to your vehicle as the result of an accident. If you are not at fault, you should collect from the other party's property damage coverage. If there is disputed liability or you are at fault, you will have to use your collision coverage less the deductible to repair or replace your vehicle. Even if you are not at fault, some companies may force you to use your collision coverage and surrogate against them to collect your deductible. That is becoming more common. Remember the way insurance companies make money is by holding on to insurance premiums and investing them for maximum return.
Next, we are going to tackle auto and homeowner policy pricing and what you can do to keep your insurance premiums as low as feasible. And learn where to find discounts and policy credits.
This coverage, like most physical damage coverage, is subject to a deductible. Usually this deductible is $250 or $500. The lower the deductible the higher the cost. This coverage is redundant with collision coverage, but most people have a higher collision deductible. So if you are in an accident with an uninsured motorist, make sure you collect under the correct coverage.
The next coverage listed on your policy is comprehensive, or other than collision. This covers your vehicle for perils such as hail, wind, malicious mischief, total theft and hitting an animal. The price you pay for this coverage is based on the value of the vehicle and carries a deductible. The lower the deductible, the more you will pay for the coverage. Once your vehicle reaches 10 years old, you really need to consider whether it is still feasible to carry this coverage. That decision should be based on the value, condition and garaged location of the vehicle. You really need to weigh the cost of the coverage versus the value of the vehicle.
Collision coverage is pretty self explanatory. It covers damage to your vehicle as the result of an accident. If you are not at fault, you should collect from the other party's property damage coverage. If there is disputed liability or you are at fault, you will have to use your collision coverage less the deductible to repair or replace your vehicle. Even if you are not at fault, some companies may force you to use your collision coverage and surrogate against them to collect your deductible. That is becoming more common. Remember the way insurance companies make money is by holding on to insurance premiums and investing them for maximum return.
Next, we are going to tackle auto and homeowner policy pricing and what you can do to keep your insurance premiums as low as feasible. And learn where to find discounts and policy credits.
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