Car Insurance Basics

Car Insurance: What to Expect

Car insurance is exactly what its name says.  It is insurance for your car in case it is involved in an accident.  Car insurance not only covers your vehicle but it also covers you, your passengers, and any property that you may damage if involved in an accident.

Purchasing a Car Insurance Policy
Milly bought a new car and she needed to purchase an insurance policy before she could register the vehicle.  In her state, it is mandatory to have car insurance.  Milly went online and began shopping for car insurance quotes.  This is important because Milly needed the cheapest rate available.  She shopped around and found a good quote for collision insurance only.  Milly believed that she was a good enough driver that she would only need collision.  Because Milly knew that sometimes other people can cause accidents, she decided to add the uninsured motorist to her plan.  She found out that she could add the uninsured motorist to her plan for a reasonable price. 
Once Milly was ready to purchase her policy, she was able to do it right online.  She chose the policy that she wanted.  Next, Milly had to fill out all of the information needed.  The first thing it asked was information about the vehicle.  Milly had to find the bill of sale which included the make, the model, and the year of the vehicle.  All of this information was necessary for her to get the car insurance.  Another piece of information regarding the vehicle was the vehicle identification number (VIN).  This number is also found on the bill of sale.
After filling out the information regarding the vehicle, the auto insurance company wanted information regarding her driving history and information about herself.  She had to tell the insurance company of any accidents, speeding tickets, and traffic violations that she has had in the last three years.  This can affect the her insurance premium.
After filling in that information, Milly had to fill in information such as her age, her sex, how long she was licenced for, and her marital status.  All of this information was necessary for her to get an accurate insurance quote.
She got the quote and purchased the policy right online.    

A Full Coverage Accident
Milly was driving through an intersection one morning and she ran a stop sign.  She hit another vehicle.  Fortunately, she was not injured in the accident.  Her car unfortunately was damaged.  Luckily she had full coverage insurance.  Had she not had fl coverage, she would have been responsible for fixing her own car. 
After the police came, Milly called her insurance company.  They told her that she should have the tow truck take her vehicle to a body shop.  Milly’s insurance company gave her the names of several different body shops that were on their preferred list, however, Milly had her own body shop that she used.  She had the tow truck driver take her vehicle there. 
The next morning, Milly spoke to the body shop and they gave her the estimate of the damage to her vehicle.  She then called her insurance company.  They had already spoken to the people at the body shop and they found out what the estimate was.  The insurance company gave the body shop the okay to begin working on Milly’s car.
Soon, Milly’s car was fixed and she had it back.  Unfortunately however, because the accident was Milly’s fault her insurance premium went up.

A Collision Accident
Milly was driving through an intersection one morning and a car driven by Phil ran the stop sign.  Milly was hurt and her car was damaged.  Lucky for Phil, he had collision insurance.  His collision insurance would pay for Milly’s vehicle and her injuries but it would not pay for his. 
Milly went to the hospital in the ambulance and her vehicle went to the nearest impound yard.  Phil’s vehicle was able to be driven home and because he was not injured, he went home.
Milly was released later that night and she took a cab home.  The next morning, Milly went to the police station to get the police report so that she could get Phil’s insurance information.  She went home and she called Phil’s insurance company.  Phil’s insurance company informed Milly that everything would be paid in full.  Milly called her body shop and had her car towed there to be fixed.  Later that day, Milly got a phone call from Phil’s insurance company.  They wanted to settle with Milly for her pain and suffering and lost wages from work.  Milly took the offer and in just a few days she received a check for the pain and suffering and lost wages.  Phil’s insurance company paid the bill from the body shop and the hospital as soon as they received it.
If Milly had been more seriously injured, she would not have been able to settle so fast.  Because she was cleared with just a couple bruises, Milly settled quickly.

An Uninsured Motorist Accident
Milly was waking out of the supermarket with her groceries and went over to her car.  When she got there, she noticed that someone had smashed into the side of her car and then left.  Milly did not know what to do.  Her car was still able to be driven so she headed home.  Milly called her insurance company and they told her that she could cover the damage to her car under her uninsured motorist insurance.  When using the uninsured motorist insurance, Milly found out that her car could be fixed by her insurance and her premiums would not go up.  Also, Milly would not have to pay the deductible that she would have to pay if she hit another vehicle.  She was happy that her car would be fixed without costing her anyone.