Car Insurance

I went to Herb Chamber's Honda dealership yesterday and bought a Honda Fit Sport. Hooray. I don't actually have it, yet, though. I need to get car insurance first. I think I am getting car insurance from Progressive at about $800/year.

I just wanted to share with everyone some things I'm learning about car insurance from
www.dmv.org

First of all, apparently, as of April 2008, all car insurance rates in MA were about the same because they were regulated. Now there is "managed competition."

Second, here is a glossary of car insurance jargon.

Property damage liability: This coverage pays for any damage that you cause to other people's property. Your insurance will cover this damage whether you are the driver, or if someone else was operating your vehicle with your permission.

Bodily injury liability: This insurance coverage protects you against the claims for damages in an accident in which other people are injured. Most states have minimum dollar amounts for bodily injury coverage, but this limit might be fairly low. You might want to consider purchasing additional coverage.

Uninsured motorist: This coverage takes the place of the insurance coverage that the uninsured motorist should have had in effect. This may also cover you in the event that you are involved in a hit-and-run accident caused by a fleeing motorist. Uninsured motorist coverage does not protect the other driver and may not cover damage to your vehicle, depending on your state. It will compensate you for medical expenses and other losses related to your injuries if you're involved in an accident with a motorist who does not have insurance.

Personal injury protection (PIP): Under the no-fault system, this coverage will pay a minimum benefit amount per person for you and your passengers for injuries sustained in an accident regardless of who is at fault. Typical personal injury protection coverage can include things like lost wages, medical expenses, funeral expenses and survivors loss benefits.

Collision and comprehensive: Collision coverage, as the name implies, covers damage to your car. It pays the cost of repairing or replacing your car after it has been involved in an accident regardless of who was at fault. The insurance company will pay you the actual cash market value of your vehicle less the amount of your deductible.

Comprehensive covers damage caused by something other than a collision, such as theft, fire, vandalism or a natural or weather-related event. Comprehensive coverage will also pay for a rental car while your car is being repaired or if it has been stolen.

Medical payments coverage: This is usually an optional product, which pays for the medical or funeral expenses for you and for the other parties who might have been injured or killed in an accident while riding in your vehicle. This coverage will also cover these expenses if you are struck by another motor vehicle while you are a pedestrian or even riding in another motor vehicle as a passenger.