Insurance for Car Drivers

Submitted by carol on Wed, 10/17/2007 - 11:53
Hi folks, this is only a synopsis of the most discussed topics in our forums regarding auto insurance.

What does collision coverage cover?

Collision coverage normally pays for the damages that your car has suffered in an accident. Collision coverage is quite expensive. Therefore, can increase your insurance cost. However, you can choose deductible between $250 and $1,000 to lower the premium.

What is covered under UM? Am I required to carry UM?

May be its not mandatory in your state but it always make sense to add UM coverage to you policy. It will cover you in a hit-and-run case. Moreover, in some states of US motorists are not required to carry liability coverage. Therefore, if you suffer any bodily injury may require to claim on your own policy for the medical expenses and pain and sufferings. Not only bodily injury, UMPD (a component of UM) will pay for the damages to your property. More…… UM coverage applies to you as a pedestrian also. Some states may even allow you to stack UM coverage.

Why my auto insurance rates have gone up?

Auto insurance rates can go up for many reasons- if you add tickets to your license or file claims with the insurer. Even it can go up if there is an overall increase in auto insurance rate. Insurance premium is determined on the risk sharing basis. The total amount of risk undertaken is divided amongst the policy holders. Therefore, you may also suffer the consequences if someone contributes positively to the risk pool. The other determining factors are:
  • Age of the driver
  • Model of the car
  • Driving history
  • Claim history
  • Area of residence.
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