Understanding Your Auto Insurance Coverage and Deductibles
While most if not all people have auto insurance only a minority really understand their own auto insurance coverage and the concept of deductible still eludes many. But don’t worry, we have got you covered.
Let’s first get to terms with auto insurance coverage and take a look at different type of coverage’s so that you can differentiate between what’s covered by a particular policy along with what’s not.
Auto Insurance Coverage
In the United States, the majority of the states require auto coverage that include bodily injury liability (covers costs associated with death or injuries that’s been caused by your car regardless of whoever drives it) and property damage liability (covers costs associated with damage to someone else’s property that’s been caused by your car regardless of whoever drives it). Now there are some other frequently required coverage that are required in some states. Medical payments (provision of medical expenses caused due to the collision) and uninsured motorist coverage (covers costs of collision that are caused by an uninsured motorist or a hit and run) are some examples. There are also several optional coverage available that unlike the basic plans can cover damages to your own car. Some of them are collision coverage, comprehensive coverage, and glass coverage.
Do remember that your auto insurance coverage will cover expenses only if your car was used for personal purposes by anyone. If you intend to use it as a ride-sharing vehicle then you will have to get supplemental insurance.
Deductibles
Having given you a fundamental overview of your auto insurance coverage and what are the options available, its time to dissect deductibles.
Simply put, an insurance deductible is the amount of money that you will be required to pay towards the cost of the repairs needed before the insurance coverage kicks in. For example, if your insurance has a $500 deductible, your insurance company will cover costs starting at $501. It represents the portion of the risk that you will cover in case of any collision. Deductibles usually vary according to circumstance; the higher they are, the lower will be your cost of insurance since you will be covering a higher amount of risk. The deductibles are listed on the declaration page of your insurance policy under the terms and conditions. Be sure to check them out.
The takeaway
So now you can understand what your own auto insurance policy exactly entails. The next time you go out to purchase one, make the most of the knowledge you have acquired to get yourself the best possible deal.
Here at Davis Paint & Collision Auto Center we help customers like you navigate the insurance process. Don’t let it intimidate you. Call us today and let us handle it. Call one of our locations today: Oklahoma City location (405) 733-9797 or Midwest City location (405) 732-0762.
