Step 1 – Starting Out:  Keep telling yourself there is money to be saved.  How much?  Possibly hundreds, even thousands of dollars per year.  If you type all your insurance information into an online comparative insurance service, you’ll get quotes that could vary as much as $800 or more per year.

Step 2 – How much Coverage Do You Need:  To find the right auto insurance, start by figuring out the amount of coverage required, which varies from state to state.  Next, you need to decide what you need in addition to the required coverage, which is partially based on your assets.  You want to carry enough liability coverage to ensure your home and savings are safe.  General recommendations for liability limits are $50,000 bodily injury liability for one person injured in each accident, $100,000 for all people injured  in an accident and $25,000 property damage liability (in insurance terms, this would be 50/100/25).  However, you should let your financial situation be your guide.

Next, different types of coverage should be considered, such as Personal Injury Protection.  This type of coverage pays your accident-related medical bills no matter who is at fault.  If you have good health insurance coverage, you may decide to forego PIP insurance; however, you will be responsible for any deductibles, co-payment, or co-insurance as dictated by your policy.  Remember, the insurance company for the at-fault party isn’t required by law to pay medical bills as they are incurred; they need only pay at time of settlement which means you are initially responsible for any bills incurred.

Uninsured/Underinsured Motorist (UM/UIM) coverage will protect you in the event you are involved in an accident caused by someone who is not carrying insurance or who does not carry sufficient insurance to fully compensate you for your injuries.  Remember, though, that you cannot purchase higher limits of UM/UIM coverage than you do for liability coverage.

Finally, remember that your driving habits may be a consideration, especially when deciding whether to buy collision and/or comprehensive coverage.  Your driving history, what types of roads you typically drive on, and how old your vehicle is will help determine what type and how much coverage you should purchase.

Adapted from an article by Philip Reed, Senior Consumer Advice Editor of CarInsurance.com.

Next Blog- Steps 3 and 4 of Ten Steps to Buying Auto Insurance.

Law Offices of Buckland & Schumm, P.S.  We offer free consultations and have over 27 years experience EXCLUSIVELY in personal injury law, with a long history of success helping accident victims understand their legal rights.

Uninsured/Underinsured Motorist Bodily Injury – Covers bodily injuries to you and your passengers when the at-fault person has no insurance or not enough insurance to fairly compensate you for your injuries.  In some states, there is also uninsured motorist coverage for damage to your vehicle.  Given the large number of uninsured and underinsured motorists, this is very important coverage to have, even in states with no-fault insurance.  Coverage is limited to the terms and conditions contained in the policy.

Property Damage Liability – Covers you if your car damages someone else’s property.  Usually it is their car, but it could be a fence, a house or any other property damaged in an accident.  It also provides you with legal defense if another party files a lawsuit against you for property damage.  It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.  Coverage is limited to the terms and conditions contained in the policy.

Adapted from an article from CarInsurance.com – 05/14/2009

Next month – 10 Steps to Buying Auto Insurance.

Law Offices of Buckland & Schumm, P.S.  We offer free consultations and have over 27 years experience EXCLUSIVELY in personal injury law, with a long history of success helping accident victims understand their legal rights.

Bodily Injury Liability:  Covers other people’s body injuries or death for which you are responsible.  It also provides for a legal defense if another party in the accident files a lawsuit against you.  Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering.  In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit to ensure your personal assets won’t be jeopardized. Bodily injury liability covers injury to people, not vehicles; therefore, it is a good idea to have the same level of coverage for all your cars.  Bodily Injury Liability does NOT cover injuries to you or other people on your policy.  Coverage is limited to the terms and conditions contained in the policy.

Personal Injury Protection (PIP):  Covers within the specified limits (often, up to $10,000 or three years, whichever comes first), the medical, hospital and funeral expenses of the insured, others in his/her vehicle and pedestrians or bicyclists struck by the insured’s vehicle.  It will also cover a portion of the lost income, within specific limits, of the covered parties listed above.  PIP is only available in certain states, Washington State being one of them.

Adapted from an article from CarInsurance.com – 05/14/2009

Next – Continuation of coverage definitions of car insurance.

Law Offices of Buckland & Schumm, P.S.  We offer free consultations and have over 27 years of experience EXCLUSIVELY in personal injury law, with a long history of success helping accident victims understand their legal rights.

Comprehensive:  Covers your car, and sometimes other cars you may be driving, for losses resulting from incidents other than collision.  For example, comprehensive insurance covers damage to your car if it is stolen, or if it is damaged by floor, fire, or animals.  It also covers windshields that are cracked from passing vehicles throwing stones.  There is usually a deductible, which means you have to pay that amount towards repair before your insurance kicks in.  The amount of the deductible varies, but to keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket.

Collision:  Covers damage to your car when your car hits, or is hit by, another vehicle, or another object.  There is usually a deductible, as described above.  Older cars owners might consider dropping this coverage, since coverage is normally limited to the cash value of your car.

Remember, whatever you purchase, your coverage is limited to the terms and conditions contained in your own policy.

Adapted from an article from CarInsurance.com – 05/14/2009

Next month – Continue discussion on coverage definitions of car insurance.

Law Offices of Buckland & Schumm, P.S.  We offer free consultations and have over 27 years experience EXCLUSIVELY in personal injury law, with a long history of success helping accident victims understand their legal rights.