Tuesday, August 12, 2008

How to Know if Your Insurance Covers You in Someone Else's Car

Insurance coverage is compulsory for all vehicle owners and obtaining an insurance policy appears to be very simple. Understanding all the clauses mentioned in the policy can be a cumbersome process for the people who drive the car. The two basic insurance policies usually available are Liability and Comprehensive . In most states, coverage for damage to non-owned vehicles, such as rental cars, is no longer provided under the liability clauses. A comprehensive policy provides more coverage for at least one of your personally owned vehicles in order to claim compensation. You will not be covered for damage to vehicles that you rent or borrow under the Liability policy. The best way to determine this is by asking your insurance agent or the company at the time of purchasing a policy.

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Step1
Contact an insurance company or agent before purchasing a policy. Convey all the points that you want to include in the coverage.



Step2
Be sure that you understand all the clauses mentioned in the policy you are purchasing.



Step3
Get clarification from the agent or insurance company that the policy will cover driving a third-party vehicle.



Step4
Find out how much the additional collision and or comprehensive coverage will cost you.



Step5
Consult legal experts, if necessary, before paying the stipulated premium.



Step6
Choose wisely.


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