auto insurance rating

Auto Insurance Rating

Your auto insurance policy will provide protection under a variety of circumstances. Choosing the appropriate level of coverage depends on a number of factors, including assets you must protect (liability coverage), value of your vehicle (collision and comprehensive), the amount of money you can afford to pay out-of-pocket (deductibles), and your tolerance for risk.

Your coverage options:

• Collision and comprehensive coverage - Collision and Comprehensive coverages pay for damage to your auto. You can purchase either or both of these for each vehicle you own. If you have an auto loan you may be required to purchase both. Collision coverage insures you against damage to your vehicle caused in an accident. Comprehensive coverage insures you against all other physical damage to your car caused by such events as fire, theft, flood, and vandalism. This coverage is normally purchased with a deductible (generally, anywhere from $100 to $1,000). If your auto is damaged, the insurance company pays only for the damage in excess of the deductible you selected. The higher the deductible, the lower the premium.
  


• Liability coverage - Liability coverage pays for injuries you cause to other people and damage you cause to other people's property in an automobile accident.
  


• Medical payments coverage - Medical payments coverage pays medical expenses (up to a specified dollar limit) for passengers of your car who are injured in an automobile accident. If you and your passengers have health insurance, you may not need this coverage.
  


• Personal injury protection - Some states require personal injury protection, also known as no-fault coverage. This coverage pays for medical expenses for passengers of your car who are injured in an auto accident. It also pays for loss of income if you are injured in an auto accident and are unable to work.
  


• Uninsured/underinsured motorist coverage - This coverage pays for bodily injury to you caused by another person who is completely uninsured or who has less than adequate liability insurance to cover your injuries.
  


• Optional coverage - Optional or special coverage includes extras such as towing, rental reimbursement, and roadside assistance. None of this coverage is required.

Before going for any plans, make sure you to check the auto insurance rating of the company you are dealing with. Checking the auto insurance rating will help you to decide the financial strength of the company.