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Auto insurance 101

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Getting the most out of your automobile coverage

By David Wight

TV BROADCASTS AND the mailbox are stuffed with messages about saving money on auto insurance, but be careful to look before you leap. Talking with family and friends about their experiences might help, and doing some homework can help you differentiate between low-cost come-ons versus adequate coverage.

Take the time to level the playing field. You can use the Internet to find out about auto insurance requirements in your state. Then get to know the language of auto insurance, starting with some common definitions and these helpful tips from Ameriprise Auto & Home Insurance.

Otherwise your assets could be compromised and you could experience higher out-of-pocket costs.

Uninsured and underinsured motorist coverage pays for medical treatment and sometimes your property damage in the event that you are injured in a collision and the other driver is not insured or insufficiently insured.

Auto insurance basics:
glossary and tips

For many, truly understanding their auto insurance can be discouraging. When reviewing a policy, it is important to know who and what is protected under each coverage within the policy.

Bodily injury liability covers damages for injuries caused to someone else when you are legally responsible for a car accident.

Property damage liability pays for damage caused to someone else’s property when you are legally responsible for a car accident.

❖ Tip: Uninsured and/or underinsured motorist coverage cannot exceed liability coverage limits, so be sure to choose adequate coverage. These coverages are valuable for covering needed costs if you are injured in a major accident and the other driver is not properly insured.

Ways to save money on your
auto insurance

You can control more aspects of insurance cost than you might realize. Consider these ways to keep the cost down.

• Maintain a clean driving record. Speeding tickets and other moving violations that result in points on your driving record will trigger higher insurance premiums.

• Ask about discounts. Here’s a checklist of discounts you should investigate.

✔ Having a good driving record ✔ Being a safe driver

✔ Owning a vehicle with safety features, including airbags, car alarm, anti-theft devices and anti-lock brakes.

✔ Passing a defensive driving course
✔ Insuring multiple vehicles or auto
and home with the same carrier
✔ Being a good student

✔ Being a Costco member (only with Ameriprise Auto & Home Insurance)

• Drive a modest vehicle equipped with money-saving safety features. An exotic sports car comes with much higher insurance premiums than a four-door sedan. Be sure to research the cost of insurance on potential new cars prior to purchasing.

• Maintain a good credit rating. The better your credit rating, the more likely it will reduce your premium.

• Drive fewer miles. If you drive less, you will pay a smaller premium. C

Medical coverage pays for your medical expenses from being injured in an accident.

Comprehensive coverage pays for damage to your vehicle in cases such as theft, vandalism, fire, windshield replacement, hail or hitting an animal.

Collision coverage pays for losses to your vehicle resulting from your vehicle colliding with another vehicle or object.

The membership advantage

❖ Tip: If you have only minimum liability coverage and injure someone, an attorney can go after your assets or cause you to have higher out-of-pocket payments. Be sure you have enough liability coverage to protect your assets if someone is injured or if valuable items and multiple vehicles are destroyed.

❖ Tip: The deductible part of your auto insurance policy is applicable to comprehensive and collision coverage. It is an amount you determine to pay out-of-pocket before the insurance company pays toward a loss. The higher the deductible amount, the lower the cost of coverage. Make sure you choose a deductible amount that you can comfortably afford in the event of a crisis.

Insurance is underwritten by IDS Property Casualty Insurance Company and Ameriprise Insurance Company, both in De Pere, Wisconsin. Each company is a subsidiary of Ameriprise Financial, Inc. Discounts and savings vary by state and apply to certain coverages. Ameriprise Auto & Home Insurance’s California license number is 0C41813. Costco Insurance Agency, Inc.’s California license number is 0D08407. Insurance may vary by region or state. See the Ameriprise Auto & Home Insurance ad on the back cover of this issue for more details.