Seattle, Washington (PRWEB) February 21, 2013
Experience has shown that there are very few people who know what their insurance policy means. It isn't surprising, unfortunately. Insurance is an industry with very odd- one might even say bizarre- terminology. Most terms wildly diverge, or are the exact opposite of what the expected meaning is. Strangely, certain terms apply to the policy holder, and others apply to the insurance company without an indication of who they refer to.
There is no cause for concern, however: Rate Digest has published a guide to help people get the cheap car insurance they need, by gaining a little knowledge of those terms. There are many practical, helpful pieces of advice inside, but here are a couple of main pointers.
One of the most important pieces of an auto insurance policy is liability coverage. This is one of the terms that apply to the policy holder; if the policy holder is involved in an accident for which they are legally responsible, this policy covers all or part of the expense. The policy is typically defined by state requirements, however most insurance companies exceed the state minimums.
Rate Digest suggests that drivers can, if they are confident in their driving skills, lower their liability coverage to the state defined minimum and get very cheap car insurance in the process. However, Rate Digest warns, they are likely to have to pay thousands in out-of-pocket expenses should they be legally responsible for a crash, as the state minimum requirements typically are insufficient to pay for all the expenses involved in a serious collision.
Another important section of an auto insurance policy is the collision insurance section. This is actually one of the more clear-cut sections of a driver's policy, but Rate Digest offers some excellent advice which we'll cover here. For those that don't know what collision insurance is, it is fairly simple. If a given driver is involved in an accident, and the driver is at fault, collision insurance pays for the necessary repairs to the car.
If the car is not worth the repairs (in most cases, this means that the repair work is more than seventy five percent of the estimated value of the car) the car is “totalled”. The driver is then given the estimated value of the car before the crash minus any out of pocket expenses that would have been paid for by the driver in the event that the car was repaired.
Rate Digest suggests that, to get cheap car insurance, drivers drop this portion of their insurance policy if they drive an older car. Collision insurance will not be effective, as older cars are likely to get totalled and drivers will get a limited amount of money back, while maintaining a higher month-to-month payment.
About Rate Digest:
Rate Digest, http://www.ratedigest.com/ has a great tool for getting cheap car insurance by letting drivers compare rates from dozens of insurance companies, potentially lowering their rates to just $19/month.