Sports Car Insurance Helpful Advice and Useful Tips

• Here's a quick guide to some common car insurance terms and what they mean for your policy.
  An auto insurance policy is actually a package of different types of coverage. Most states require you to purchase a minimum amount of some of these. But if you're interested in protecting yourself from a lawsuit or from wicked repair bills, it makes sense to buy more than what's required.
• Basic Coverage
  Liability coverage is the foundation of any auto insurance policy, and is required in most states. If you are at fault in an accident, your liability insurance will pay for the bodily injury and property damage expenses caused to third parties in the accident, including legal bills. Bodily injury expenses include medical bills and lost wages. Property damage expenses pay for the repair or replacement of things you wrecked. The third party may also decide to sue you in order to collect "pain and suffering" damages.
  
  Remember, if you cause a serious accident, minimum insurance may not cover you adequately. That's why it's a good idea to buy more than what your state requires
  
• Liability Coverage
  Insurance types usually refer to liability coverage limits as a series of three numbers. For example, your agent might say that your policy carries liability limits of 20/40/10. That stands for $20,000 in bodily injury coverage per person, $40,000 in bodily injury coverage per accident, and $10,000 in property damage coverage per accident.
  
  Replacement cost vs. actual value
  Replacement cost is the amount it would take to replace your vehicle or repair damages with materials of similar kind and quality, without deducting for depreciation. Depreciation is the decrease in vehicle value because of age or wear and tear.
  
  Actual cash value (ACV) is the value of your property when it is damaged or destroyed. Claims adjusters usually figure ACV by taking the replacement cost and subtracting depreciation. For example, an auto that costs $5,000 may have a reasonable "life" of 5 years. If it is destroyed after 10 years, its actual cash value will be substantially less than $5,000 because of depreciation.
  
  It's usually better to go with replacement cost coverage. Although the cost is higher, in most cases the extra protection may be worth it. Make sure to ask your agent which kind of coverage you have on your auto policy.
  
  
• Collision and comprehensive coverage
  Collision
  If you cause an accident, collision coverage will pay to repair your vehicle. You usually can't collect any more than the actual cash value of your car, which is not the same as the car's replacement cost. Collision coverage is normally the most expensive component of auto insurance. By choosing a higher deductible, say $250 or even $500, you can keep your premium costs down. However, keep in mind that you must pay the amount of your deductible before the insurance company kicks in any money after an accident.
  
  Insurance companies often will "total" your car if the repairs the company must pay exceed what the car is worth.
  
  Comprehensive
  Comprehensive coverage will pay for damages to your car that weren't caused by an auto accident; damages from theft, fire, vandalism, natural disasters, or hitting a deer all qualify. Comprehensive coverage also comes with a deductible and your insurer will only pay as much as the car was worth when it got wrecked.
  
  Because insurance companies normally will not pay you more than your car's book value, it's helpful if you have a rough idea of this amount. Most insurance adjusters use the Kelley Blue Book. The National Automobile Dealers Association also publishes the Official Used Car Guide, which is updated each month. If your car is worth less than what you're paying for the coverage, you're better off not having it.
  
• Medical payments, PIP and no-fault coverage
  Medical payments coverage will pay for your and your passengers' medical expenses after an accident. These expenses can arise from accidents while you're driving your car or someone else's car (with their permission) and injuries you or your family members incur when you're pedestrians. The coverage will pay regardless of who is at fault, but if someone else is liable, your insurer may seek to recoup the expenses from them.
  
  Personal injury protection (PIP) and broader "no-fault" coverage are expanded forms of medical payments protection that may be required in your state. Some states have optional PIP or no-fault coverage. Expanded features include lost wages and payments for childcare.
  
• Add-on features
  Several supplemental types of coverage are available, either as separate premium items or included in augmented policies.
  Rental reimbursement, a common add-on, covers vehicle rentals required because your car is damaged or stolen.
  
  Coverage for towing and labor charges in case of a breakdown is also common.
  
  Auto replacement coverage guarantees your car will be completely repaired or replaced, even if these costs exceed its depreciated value.
  
  There are also some great ways to save so that you can increase your coverage and still keep your automobile insurance premiums within your budget:
  
  Driver's ed and burglar alarms
  Consider installing an anti-theft device and buying cars with passive restraints such as airbags. Take a driver's education course. Driver's education is especially important for teenagers or adults just learning to drive because taking (and passing) the course will keep the premiums down. Many states now require teenagers to take driver's education before they can get a license.
  
  Buy a low-theft car
  Check out what your insurance premiums would be for different models of cars you're considering before you make a decision on what to buy. If you buy a car that's considered a high theft risk, your premiums will be much higher than if you settle on models less likely to be stolen. Your insurance agent or company or your state insurance department can give you a list of vehicles on the "high theft list."
  
• If you are involved in an auto accident, take the following steps:
  1) Don't leave the scene
  
  2) Call for medical assistance if there are injuries.
  
  3) Call the police- The Ontario Highway Traffic Act was revised as of January 1, 1998 and accidents over $1,000 must be reported to the police. This is not per car ,but, for the entire accident and all vehicles involved.
  
  4) Drivers involved in a collision must now exchange drivers license numbers and pertinent insurance information in writing, as well as, license plate number and registered owner information. Please consider this simple tip - Keep paper and a pencil in the vehicle for this reason.
  
  5) All collision with personal injury must be reported to the police and insurance company immediately. Do not make statements to the other insurance company involved until you have talked to your own insurance company and adjuster.
  
  6) If the collision doesn't involve personal injuries police may direct motorists to a Collision Reporting Center or local police station. Report to that Center and provide all necessary details and get a copy of the report for your records and your brokers records.
  
  7) Never pay cash for a claim -to the other person involved in the accident at the scene. Don't pay cash to the tow truck driver without a receipt (you may be reimbursed by the insurance company)
  
  8) Look for witnesses. Record the names of any witnesses who saw what happened. These people are very important if your participation in the accident is questioned at a later date. Preferably look for people that are not in your car, but, were situated near the accident scene at the time and saw what happened.
  
  
• Here's a quick guide to some common car insurance terms and what they mean for your policy.
  An auto insurance policy is actually a package of different types of coverage. Most states require you to purchase a minimum amount of some of these. But if you're interested in protecting yourself from a lawsuit or from wicked repair bills, it makes sense to buy more than what's required.
• Basic Coverage
  Liability coverage is the foundation of any auto insurance policy, and is required in most states. If you are at fault in an accident, your liability insurance will pay for the bodily injury and property damage expenses caused to third parties in the accident, including legal bills. Bodily injury expenses include medical bills and lost wages. Property damage expenses pay for the repair or replacement of things you wrecked. The third party may also decide to sue you in order to collect "pain and suffering" damages.
  
  Remember, if you cause a serious accident, minimum insurance may not cover you adequately. That's why it's a good idea to buy more than what your state requires
  
• Liability Coverage
  Insurance types usually refer to liability coverage limits as a series of three numbers. For example, your agent might say that your policy carries liability limits of 20/40/10. That stands for $20,000 in bodily injury coverage per person, $40,000 in bodily injury coverage per accident, and $10,000 in property damage coverage per accident.
  
  Replacement cost vs. actual value
  Replacement cost is the amount it would take to replace your vehicle or repair damages with materials of similar kind and quality, without deducting for depreciation. Depreciation is the decrease in vehicle value because of age or wear and tear.
  
  Actual cash value (ACV) is the value of your property when it is damaged or destroyed. Claims adjusters usually figure ACV by taking the replacement cost and subtracting depreciation. For example, an auto that costs $5,000 may have a reasonable "life" of 5 years. If it is destroyed after 10 years, its actual cash value will be substantially less than $5,000 because of depreciation.
  
  It's usually better to go with replacement cost coverage. Although the cost is higher, in most cases the extra protection may be worth it. Make sure to ask your agent which kind of coverage you have on your auto policy.
  
  
• Collision and comprehensive coverage
  Collision
  If you cause an accident, collision coverage will pay to repair your vehicle. You usually can't collect any more than the actual cash value of your car, which is not the same as the car's replacement cost. Collision coverage is normally the most expensive component of auto insurance. By choosing a higher deductible, say $250 or even $500, you can keep your premium costs down. However, keep in mind that you must pay the amount of your deductible before the insurance company kicks in any money after an accident.
  
  Insurance companies often will "total" your car if the repairs the company must pay exceed what the car is worth.
  
  Comprehensive
  Comprehensive coverage will pay for damages to your car that weren't caused by an auto accident; damages from theft, fire, vandalism, natural disasters, or hitting a deer all qualify. Comprehensive coverage also comes with a deductible and your insurer will only pay as much as the car was worth when it got wrecked.
  
  Because insurance companies normally will not pay you more than your car's book value, it's helpful if you have a rough idea of this amount. Most insurance adjusters use the Kelley Blue Book. The National Automobile Dealers Association also publishes the Official Used Car Guide, which is updated each month. If your car is worth less than what you're paying for the coverage, you're better off not having it