Auto Insurance

When you buy auto insurance you will need to know exactly what cover is being offered. The last thing you want to do is assume you know what is covered, and then be in a situation where the cause of your accident or claim isn’t covered at all. How much cover do you have for your family and passengers when they are in your vehicle?

One of the first decisions you need to make is the what type of insurance you want. You might decide on third party insurance, but this is the most basic insurance you can buy. If you are in an accident which is your fault then you will be responsible for sorting out the repairs needed to your vehicle, while the insurance company will pay the costs for the other vehicle involved.

When looking at third party insurance you will see that the premium is very low, you might find that the coverage is too low for the State minimum and you will need to increase the limits which will also increase the costs.

Another option will be fully comprehensive insurance for your vehicle. With a comprehensive policy you will know that your vehicle, passengers as well as any other vehicle involved in an accident will be fully covered. You might think that you are covered when an accident happens, but the final decision will be made by the insurance company. If they feel that the value of the vehicle is less than the amount required to repair the vehicle, then they might decide to write the vehicle off. You can use a third party to get a fair valuation of the market price of your vehicle. You will need to know if you are expected to pay a set amount should you have an accident and make a claim.

You should always check with you auto insurance company whether you are covered if you are in an accident which wasn’t your fault and the driver of the other vehicle is either underinsured or doesn’t have any insurance. Some companies will charge you an additional amount if this happens, but most will add this into your policy at no additional charge. If you ask the right questions and check before you buy your policy, then you shouldn’t have any surprises if you are involved in an accident, even if it wasn’t your fault.