Car Insurance Breakdown, Essentials In Personal Finance

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

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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

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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

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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