American Express

Posts Tagged ‘excessive premiums’

Most states require drivers to carry some kind of auto insurance before they will issue a car registration, so it is a policy you cannot avoid if you own a car. The lingo of car insurance can be particularly difficult to understand, but it is worth learning if you don’t want to pay excessive premiums. The first principle of car insurance is that your policy covers a specific automobile. That means you are not covered when driving other cars, such as your cousin’s jalopy, unless your policy specifically includes them.

In addition to potential damage to your car itself or injuries caused by your car, your policy also insures the people who drive or ride in the vehicle. Mainly, your auto policy covers you and your family. However, if you give someone else permission to drive your car, such as a friend or relative, he or she also is covered by your policy. Your auto insurance is really several kinds of coverage combined in one policy. The primary components of coverage are bodily injury, property damage, collision, comprehensive, medical payments, personal injury, and uninsured or underinsured motorist. A brief explanation of each follows.