Auto Insurance Facts You Should Know

Your auto insurance policy is a written contract between you and the insurance company. There are two main sections to an insurance policy: a declarations page and the policy. The declarations page details the details of the policy. You should review the content on this page to make sure the scope and type of coverage you want is present. Search – the name of the insurance company; policyholder names, policy number, policy duration, vehicle description, names of coverages, limits of liability and deductibles purchased, premium amounts for each coverage, forms to complete and submit.

Here are certain types of auto insurance coverage to consider and see if they fit the type of security you’re looking for.

Emergency roadside service insurance will take care of your vehicle towing costs when your vehicle breaks down. Car rental expenses will foot the bill for car rentals as long as your car is covered by an auto insurance policy. A death and dismemberment policy will pay the people named in your policy in the event of such an accident. A GAP coverage will pay the difference in the current market value of your vehicle and the amount you owe the lender. If your vehicle has custom furnishings and equipment, you may have it covered under custom equipment coverage. You are responsible for reviewing and verifying that the coverage you have purchased is really what you are looking to purchase.

Know that some coverages are mandatory and others are optional. In states like Washington, liability coverage is mandatory; covers damages and injuries that you may cause by being involved in an accident. Personal injury protection covers medical and hospital expenses, as well as funeral expenses. The scope of coverage is defined in the policy. Medical payments coverage is optional. The uninsured and underinsured motorist bodily injury claim will help you with any injury you may cause to an insured person. Collision coverage covers damage to your car caused during a collision. You may also want to consider comprehensive coverage that covers all types of damage to your car except collision coverage.

You may be required to pay a surcharge depending on the nature of your accident. Surcharges are decided by the individual insurance companies and they will charge a surcharge depending on the severity of your accident or traffic violation.

You can shop for auto insurance online or through insurance agents. There are two types of insurance agents: captive insurance agents who represent a single company and independent insurance agents who work for multiple insurance companies and have no vested interest in selling you insurance policies from a particular insurance company. Experience shows that policyholders with independent insurance agents have an easier time getting their claims approved.

Knowing these facts can help you get the best car insurance deals online.