subject: Understand The Fundamentals Of Auto Insurance And You Can Obtain Cheap Insurance For Young Drivers [print this page] As a young driver searching for cheap auto insurance for young drivers it's a good idea to learn a few fundamentals about automobile insurance. Learning the fundamentals of automobile insurance is nonetheless a good idea for the teenage driver even if you, the parents, are the ones looking for cheap insurance for young drivers.
First, what does automobile insurance protect against? Auto insurance protects you from any loss which you may incur as a result of being involved in a car accident or having your car stolen, vandalized, set on fire or any other number of incidents. It's a contract between you and the insurance company where you agree to pay premiums in return for which the insurance provider agrees to compensate you in case of loss. Of course, this is a simplified explanation as we are only addressing the basics. There is a lot of small print which goes into any insurance contract however the fundamentals ought to be good enough in order to get started.
What typical options are available to a driver with regards to car insurance?
Bodily Injury - in the event that you cause someone else a bodily injury then your own insurance will cover any costs that may get billed to you.
Property Damage - financially covers you cause to someone property.
Collision - comparable to property damage however this one covers damage to your own property.
Uninsured/Underinsured Driver - covers you in the situation in which you suffer damages caused by a non-insured or even under-insured motorist.
Medical - in the event of injuries in an accident that brings about the necessity for medical care this insurance coverage will pay for all or some of the expenses.
Over and above the types of coverage you may get, your next most important concept to understand is the deductible. The deductible is the amount that you have to pay on any claim before the insurance company has to start to pay. For example, if your deductible is $1,000 and you are in an automobile accident that leads to $700 of damage, the insurer company won't have to pay you anything. If the damages are $1,500 then you would pay the initial $1,000 and the insurance company would recompense you for $500.
When reviewing your insurance coverage you ought to normally find several sections, each of which has a particular function, however, make sure you review the Insurance Policy Declarations which disclose the details of the coverage and the Insurance policy Exclusions which in turn highlights what is excluded from coverage.
You should be in a much better position to look for cheap insurance for young drivers now that you have got a handle on the fundamentals of insurance and can fully grasp your current policy and what to look for in your next policy
by: Gerry Lalonde
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