Car insurance breakdown essentials in personal finance.
Some states, it’s required. yes, it is. financial coach. today we’re going to talk down some of the basics inside your policy. what you should think about getting. what you should maybe drop or lower. what you should increase. get you educated on your automobile coverage. car insurance is great because if you
Get in a bad accident, and assuming you’re coming out okay, and your car needs to be repaired, certain dollar amount, the repairs and replacement costs of your vehicle. there could be some items inside your policy that you’re not familiar with that’s what we’re going to look at. let’s just that are inside your policy
And kind of talk about what they mean and how they affect you. the first thing that’s on the list there usually is liability coverage. now liability coverage does not protect your car or even you. it protects your accident and it turns out to be your fault, liability coverage will cover the third-party costs
That came with the accident. things you would typically be responsible for such as medical costs, auto repair costs, things that would happen to other people in the accident. you would not be paying for all that stuff, your insurance states don’t even require liability insurance. however, i think if you were to skip on
This one, you’d be making a really big mistake. there’s property. again, if you were to get in a wreck, instead of you having to pocket the repairs of somebody’s car or medical expenses or whatever would happen, your insurance will pick that up if you have liability on your policy. when you’re looking at your car
Insurance policy, under the liability section you’ll probably see something to the tune of $250,000/$500,000/$250,000 of coverage for bodily injury per person; per accident; and a quarter-million of coverage you want to make sure that you have that policy in place. in case something terrible happens,
The insurance can pick up that bill and make sure that stuff gets taken care of. the next section that you might see is comprehensive coverage. this is going to be stuff that happens to your car as a result of hail damage, a tree falling on your car, someone breaking your car because they threw a baseball at it. in some
Cases, theft, fire — pretty much damage that is not due to an auto collision, to a car collision, is going to be comprehensive. so whether you’re driving a beater or a brand new car, you’re going to want to have some of this up there pretty high to make sure that stuff is going to be covered if the unthinkable
Happens and a tree falls on your car, or somebody throws a baseball through it, or it catches fire, or all of the above. going down the list, you may see something called collision. this is the classic that we think of when it comes to car insurance. you’re driving down the road, you hit a piece of black ice, the
Radio’s too loud, something’s going on, and you get hit. or you hit something, that something being another car a truck. you get into a car accident. this part of the policy will help pay for the repairs of your car. with this part under your policy, it doesn’t really matter who’s at fault. the insurance
Will repair for your car and get it fixed. this option may not be as popular for those getting ready to sell it and upgrade to a car. you may not necessarily need to have this portion on your policy. another option you’re going to see on that policy is medical. now, whether you have medical insurance or not, this part of
The policy will cover some of your medical expenses if you get injured in an accident. some states like mine actually require you to have some sort of medical coverage on your policy. the last one we can talk about is uninsured or under-insured motorists. this coverage kicks in if the opposite party does not
Have any insurance, or they are underinsured, and they can’t cover what happened in the accident. now, two important things you should you should consider when looking at your auto insurance is your premium and your deductible. now your deductible is what you pay once you reach that point, the insurance takes over. for
Example, if your deductible is a thousand dollars, anything that happens to your car that is under a thousand dollars, you pay. once it breaks over that amount, premium is what you pay monthly, or every six months, depending on how you do your insurance. now they’re connected to each other. the higher your
Deductible, the lower your monthly premium is going to be. if you want a super-low deductible of 250 bucks — after 250 dollars the insurance takes over and covers everything — be prepared to pay more in monthly premiums. if you have a solid emergency fund, and you have three to six months of expenses, and you know that
If you need to you could really cover a lot of damage to your car, really low monthly premium. so take a good look at your auto insurance. see if there’s stuff on there that maybe you don’t need or don’t want to have that doesn’t fit your lifestyle. and also check to see if there is coverage that you should
Have that is not on your policy. and if you have a fully-funded emergency fund — if you have a great deductible up as high as you can make it. usually it’s about twenty five hundred dollars for most policies. if you have ten, twenty thousand dollars a two thousand dollar car expense, no problem. you’re going to
Look at the insurance and say, care of my car.” so there you have it, folks. that’s the basics of car insurance in a nutshell. if you have some ideas or tips that you have with your insurance, feel free to share in the comments below. also, as i forgot to mention the first time, don’t forget to like and subscribe
To this video. that way you can get more content just like this delivered to you. all right, guys, that’s all i’ve got today. we’ll see you in the next video.
Transcribed from video
Car Insurance Breakdown, Essentials In Personal Finance By David Georgia Personal Preparedness \u0026 Finance
