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Make the Most of Your Auto Insurance

Make the Most of Your Auto Insurance

By Jeff Youngs, August 10, 2012
Make the Most of Your Auto Insurance

It's easy to buy too much or too little auto insurance, so when shopping for a policy, make sure you purchase the right amount of coverage.

An auto insurance policy breaks down into several different policies, more so than life, health, or homeowner's insurance, so to get the best policy for your situation, it's best to consider each segment separately.

Make sure to purchase liability coverage and that this coverage includes both bodily injury and property damage. If you are at fault in an accident, and people are injured or killed, you could be liable for millions of dollars in medical bills and other expenses. Your liability coverage should equal or exceed the total value of all your assets: money, house, valuables, investments, etc.

Personal Injury Protection (PIP) covers your medical expenses and may cover lost income due to injury. If you receive personal injury coverage through your employer, you may already be covered. Check with your insurance agent for more information.

Uninsured/Underinsured Motorist Coverage is very important. In the event that you are involved in an accident that is not your fault, this type of coverage will help to cover the damages you incur when the person at fault has insufficient coverage or no coverage at all.

Collision insurance is usually the best place to save on your policy. If the trade-in value of your vehicle is low, weighing out the cost of collision insurance versus the potential benefits will help you to make the decision whether or not to purchase this type of insurance. Conversely, if your vehicle is fairly new, has a high trade-in value, and is in good shape, collision insurance is a good option.

Comprehensive insurance covers theft of the vehicle, theft of property inside it, vandalism, and other non-collision damage.

Finally, to decrease your monthly auto insurance payment, choose an insurance plan with a high deductible.

For more information or a detailed explanation of your auto policy, speak with your insurance agent.

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