subject: Your Auto Insurance Deserves A Closer Look [print this page] Your Auto Insurance Deserves A Closer Look
Buying insurance coverage on a vehicle for the first time may seem like a simple enough task however consumers quickly realize that there is a lot more to think about than just a monthly payment. This can become more apparent in the event a person actually has to make a claim. Auto insurance may seem straight forward yet there are many details that, if not handled correctly, could leave you paying for repairs or extremely high deductibles. The following article will give readers tips on how to best structure their auto insurance to fit their particular needs. While not every person will need the same types of coverage, these general ideas should help guide you to the right choices whether you are covered in Ann Arbor, Michigan or have insurance Baltimore Maryland.
Glass is collision
In a perfect world, individuals would pay their premiums and any time something happened to their vehicle it would be covered. In reality this is not the case and many different factors influence what parts on a car are covered under a specific part of an auto insurance policy. Glass for example is covered under collision policy language in many cases. Glass includes any window, sunroof, or windshield on a vehicle. Keeping your deductible lower will ensure you won't have to pay out of pocket for windshield or window replacement. The average replacement cost of a windshield for low end or average cars is about 300 dollars. Even less is the cost of replacing many windows on other parts of the vehicle. If your deductible is set at 500, which does lower monthly premiums, you will be left holding the bill at the repair shop. Keeping your deductible at 100 or even 250 however will save you some money should a rock fly up and split your windshield on your way home from work.
Was it your fault?
Many states have enacted no-fault legislation concerning auto accidents. Many have since repealed such laws however there remains a handful that still use this system. States such as Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky and a handful of others have some type of active no-fault laws on the books. If you live in a no-fault state you may have little choice but to be subject to these laws in the event of an accident which is not a bad thing. The basic theory is that no party in an accident is at fault in the eyes of the insurance industry and this is meant to quell the onslaught of costly litigation that often arises out of auto accidents. Three states, Pennsylvania, Kentucky, and New Jersey have opt-in laws where insurers opt-in to no-fault coverage at the time their policy is written or renewed. If you live in one of these regions, opting for the no-fault is typically the best way to go, especially if you have personal assets to lose. The rest of the states follow a different model and motorists in those areas pay lower premiums however things can potentially get messy in the courts when there is an accident. For instance if a person were live in and purchase insurance Baltimore, Maryland, this is a state with no "no-fault" laws on the books.
Auto insurance should be simple however a closer look and a little experience reveal that it is not. Insurance companies apply different methods to covering different types of damage and legislation in the particular state you live in will effect what happens after an accident. Asking an insurance agent questions related to these simple tips will help you decide what is best when structuring your policy.
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