Things you should know before purchasing auto
What is insurance?
Insurance is a contract between you and your insurer. This contract protects you against specific risk or loss. As individual consumers, when we pay our insurance premium, we are in fact placing our money into a pool of money along with thousands of other consumers. That pool is then used to reimburse the claims of the few who have the misfortune to be in an auto accident.
What is a premium?
A premium is the money you pay for insurance. The actual amount you are charged is based on the insurance company’s assessment of the amount of risk it must accept to insure your car.
What additional coverage should I consider?
The optional coverages are generally known as collision and comprehensive:
• Collision or upset insurance covers damage to your vehicle caused by collision or upset regardless of who’s at fault. Your economic losses are covered, less the amount of your deductible.
• Comprehensive insurance covers loss or damage to your vehicle through theft, vandalism, or fire. Loss caused by theft and fire may not be subject to a deductible.
Both collision and comprehensive insurance coverage have deductible amounts that you must pay when you make a claim. If you choose a higher deductible, it may lower your premium. Ask your agent or broker how the amount of the deductible will
affect your premium, and what the consequences of a change are.
Insurance is a contract between you and your insurer. This contract protects you against specific risk or loss. As individual consumers, when we pay our insurance premium, we are in fact placing our money into a pool of money along with thousands of other consumers. That pool is then used to reimburse the claims of the few who have the misfortune to be in an auto accident.
What is a premium?
A premium is the money you pay for insurance. The actual amount you are charged is based on the insurance company’s assessment of the amount of risk it must accept to insure your car.
What additional coverage should I consider?
The optional coverages are generally known as collision and comprehensive:
• Collision or upset insurance covers damage to your vehicle caused by collision or upset regardless of who’s at fault. Your economic losses are covered, less the amount of your deductible.
• Comprehensive insurance covers loss or damage to your vehicle through theft, vandalism, or fire. Loss caused by theft and fire may not be subject to a deductible.
Both collision and comprehensive insurance coverage have deductible amounts that you must pay when you make a claim. If you choose a higher deductible, it may lower your premium. Ask your agent or broker how the amount of the deductible will
affect your premium, and what the consequences of a change are.