It is important to educate yourself before you purchase automobile insurance so that you know what you are buying. Automobile insurance agents will try to move through the application process quickly because your time is at a premium. It is hard to blame them if they do not explain every option in detail. In addition, applications have steadily become more complex. As a consequence, it is easy to understand how buyers may purchase a policy without understanding exactly what they are buying.

There are a few basic terms with which you should be familiar before you purchase a new policy. By familiarizing yourself with these terms before you buy, you will help the agent move along through the quoting process more quickly while at the same time purchasing the policy options that best fit your needs. Do not assume that all automobile owners should have the same options on their policy. Do not assume that all automobile insurance policies are priced the same. Each buyer has distinct needs. Each automobile insurance company has their own system for rating risk. Only you know your risks and exposures, how you use your vehicles, and what you can afford. Be prepared to ask your agent questions and ask for his or her recommendations.

Some insurance buyers make the mistake of categorizing insurance coverage according to what is required or mandatory by their state law, in contrast to what coverage they need. These classifications, although accurate, may give the insurance buyer a false impression or a false sense of security about their coverage. I like to speak about the coverage options in a descriptive way that will appeal to each buyer according to what is most important to them. I outline automobile coverage as follows:

The first types of automobile coverage are designed to protect YOUR CAR. These are known as Collision and Comprehensive Insurance. Collision insurance will cover your car from accidents in which you are at fault. Comprehensive insurance will protect you from an act of God or damage caused by an unknown party such as a vandal.

The type of automobile coverage that you purchase to protect OTHER PEOPLE is known as Liability coverage. Liability coverage will protect you from property damage and injury that you caused to others in an at fault accident.

Finally, the last major category of coverage that you will purchase is designed to protect YOU & YOUR FAMILY. These types of coverage are called Uninsured and Under-insured motorist coverage. Uninsured and Under-insured coverage protects your family and your car from motorists who have too little coverage, or even none at all! This coverage protects you when the other driver is at fault. Your policy will pay you and your family only if you have this coverage. Life insurance can also be listed in this category, since it pays your family if a family member is killed in an auto accident. The liability insurance of the other driver will only pay for your loss of life if they are at fault. This will involve lengthy subrogation and lawsuits.

Medical Coverage is a hybrid of the last two categories. It will protect other people who are passengers in your automobile. It will also protect you and your family by paying medical costs. It will be paid regardless of whom is at fault and in addition to any other medical coverage.

This basic summary of automobile insurance coverage is designed to be informative and to lead you to think about what coverage is important to you. Terms like mandatory and optional coverage will vary by state. They may not lead you to purchase the best coverage to fit your needs.

What is most important to you: Protecting your car, protecting other people, or protecting your own family? For most people all three categories are important. For more information on automobile insurance or on additional coverage like car rental coverage, auto glass coverage or towing coverage please advance to the link below.

http://www.insurance-tips-101.blogspot.com

Resources are also available for obtaining quotes.