Jack Humpherey: How do I review car insurance coverage of “accident forgivness” when I compare auto insurance quotes for a policy? Please help me in this.

Response: Before you compare auto insurance quotes, it would be best to review car insurance coverage. For this it is necessary to understand what the coverage means. I know that insurance policies are very large and seem to be a jargon to most of us.

Accident forgiveness is mainly a marketing strategy followed by the auto insurance companies. Let me explain how this is a marketing strategy for the car insurance company. Please check the terms properly before you go for this since:

For the client this would mean that the first-at fault accident is forgiven and the accident would not be counted. His car insurance or auto insurance premium will not be higher or hiked in the subsequent year. The slightly higher premium he is paying for this benefit would be much lower than the premium he would have to pay if the accident was considered and he was charged for the same. You need to remember that once you have an accident, even if it is a minor accident your record will be blemished and this clause of “accident forgiveness” would not apply or become null and void. Your policy will be counted as any other risk.

Please consider all factors before you buy your insurance policy. Compare auto insurance quotes and review car insurance coverages, before you go in for your car insurance. A little bit of understanding and precaution is better than paying a higher price for the years to come.

Thanks.

Kamlesh

Neveda: How does one conduct car insurance comparision?

Response: Compare the pricing of auto insurance by using online quotes from various auto insurance companies. Depending on how the companies calculate the premiums you pay, these prices can vary significantly. They use your vehicle’s make, model and year as well as your driving history and age to determine your cost. These factors can weigh differently on your premium from one company to another. When price shopping, make sure all of the quotes are for the same amount of coverage. Lowering your deductibles will increase your overall costs. Each quote will be different, so pick the one that best suits your needs financially as the coverage should be quoted in the same amounts.

•Bodily Injury, Property-Damage Liability and Personal-Injury Protection:Determine the minimum coverage needed in your state. Bodily injury and property-damage liability are the main types needed for an auto insurance policy, but requirements vary by state. These two coverages protect the other drivers and people involved in an accident. They generally cover the same things regardless of which company, so be wary of their cost and how they affect your overall insurance cost.

Compare personal-injury protection costs. In a no-fault state, this coverage will pay for your hospital bills and funeral costs as well as those of anyone involved in an accident, including pedestrians, regardless of fault. See whether the insurance you are comparing includes money for lost wages so that you can compare each policy on the same level.

Comprehensive and Collision
Add and compare collision and comprehensive coverage pricing. These two coverages are for damage to your vehicle. Each company calculates its cost differently. The standard required deductible for a car that is bank-owned is $500 for each. You will pay the first $500 of each in the case of an accident where your vehicle is damaged or when your vehicle is damaged by weather or occurrences that are not considered accidents. If your vehicle is stolen, your comprehensive coverage will pay for a replacement vehicle minus the $500 deductible.

Review your auto insurance from time to time.