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Automobile car insurance is not nearly as confusing as you might fear. This is a good thing for those of you who are trying to save money on their next policy because if you are willing to purchase it online then you will assuredly save hundreds of dollars on your car insurance.
Before you get all excited by the savings and log on to purchase a new policy you should make sure that you are knowledgeable enough about auto insurance to ensure you purchase a policy that will protect your finances in case you are involved in an accident.
There are several clauses in every auto insurance policy. The most important, in order, are the liability clause, the collision clause, and the underinsured/uninsured motorist clause. There are additional things you can add to your policy such as rental coverage and roadside assistance, but these are self explanatory.
The liability clause pays the other driver for damages you cause to their auto or for any injuries they sustain. The amount of coverage you purchase will decide how much money you will have to pay out of pocket if you cause an accident. If you purchase enough of this coverage it is unlikely you will have to pay anything out of your own pocket, but the reverse is also true.
The collision piece of your policy is what will pay for you to pay for your own automobile to be repaired. This is not required in most states, but we recommend that all consumers carry this type of insurance. The maximum amount of coverage will depend on what your car is worth. If the car will cost more to be repaired than it would cost to replace the vehicle the insurance company will simply write a check for the worth of the vehicle.
The last portion of most auto insurance policies is also not required in most states, but it is a good idea to buy underinsured/uninsured motorist coverage. This will pay for your vehicle to be repaired even if the driver who hits you does not have enough coverage to pay for the repairs. This is especially important to have if you live in a state with low liability limits.
All of this automobile car insurance may sound expensive, but if you are willing to buy it online you can save so much money that the bottom line will still result in significant savings.
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Source: http://ezinearticles.com/?Automobile-and-Car-Insurance-101—The-ABCs-of-Auto-Insurance&id=2770923
