TULSA - Getting a bargain on car insurance resulted in a very costly problem for one Green Country resident.
Alberto went online looking for cheaper car insurance and signed up on a "name your own price" policy.
He says it did lower his insurance costs and then he got in an accident.
He says, "I took for granted I'd gotten full coverage. I didn't inspect the actual policy thoroughly. Turns out I didn't have full coverage so now I'm left with the rest of my car loan and the expense of towing on a car I can't drive."
The Oklahoma Insurance Department says there's some minimum coverage everyone is required to carry.
But everyone needs to decide on additional coverage based on their specific circumstances.
It will be different depending on whether you own the car outright or are still making payments.
Also the age of the vehicle and whether you chose coverage to protect you in the case of a hit and run accident or uninsured driver.
If you're not sure you fully understand everything offered you may want to find a local insurance agent who can explain all of your options.
The Oklahoma Insurance Department offers this information on the different types of auto insurance coverage available and what to do if you are in an accident:
Automobile accidents can cause great financial and economic insecurity. Financial loss may include property damage, medical bills, and legal costs if a lawsuit arises. Anyone who owns a car should purchase auto insurance so that these important financial protections are provided. Oklahoma requires the owner of a vehicle to purchase insurance and provide proof of financial responsibility. In addition, your auto lender may require you to purchase auto insurance to protect them against damage to a financed vehicle.
Liability Coverage
Most auto liability insurance policies contain three major parts: liability insurance for bodily injury, liability insurance for property damage, and uninsured/underinsured motorist coverage.
Bodily injury liability insurance does not protect you or your car directly. If you cause an accident in which other people are injured due to your negligence, this insurance protects you against their claims for damages, such as medical expenses, lost wages, and pain and suffering.
Property damage liability insurance pays for any damage you cause to the property of others, such as damage to another vehicle, fence, or tree caused by a collision.
Uninsured motorist coverage protects you directly. This coverage pays if you are injured by a hit-and-run driver or a driver who does not have auto liability insurance. This coverage, in effect, takes the place of the liability insurance that the other driver should have purchased but did not.
Underinsured motorist coverage applies when the other driver is at fault and whose limits of liability are lower than the damages you sustained. Your underinsured motorist coverage will pay you an additional amount up to your policy limits.
When purchasing liability coverage, you will need to determine the amount of coverage needed to protect yourself if a loss occurs. Oklahoma state law requires minimum auto coverage 25/50/25 (Title 47 § 7-204).
Coverage is often sold with per person and total per loss maximum amount. For example, 100/300/50 coverage means that you have coverage of $100,000 bodily injury liability insurance per person, $300,000 total bodily injury liability insurance per accident, and $50,000 property damage liability per accident.
Coverage for Your Car
There are two types coverage that you can choose to purchase to protect your car.
Collision Coverage pays for physical damage to your car as a result of your auto colliding with an object, such as another car or a tree.
Comprehensive Coverage pays for damage to your auto from almost all other losses other than collision. Covered losses under comprehensive coverage include the following: theft, fire, vandalism, weather related losses such as hail, water (flood), falling objects, damage caused by a bird or animal, and glass breakage.
When purchasing collision or comprehensive coverage, you will need to determine what your deductible should be. A deductible is the amount of money you agree to pay prior to the insurance company making any payment on a loss. Typical deductible amounts are $250, $500 or $1000.
Other Optional Coverage
Depending on what you want to protect against and how much money you want to spend, there are several other types of coverage which you may purchase.
These include:
Medical Payment Coverage (MPC) pays for the medical and funeral expenses for you or others injured or killed in an accident while riding in or driving your auto. This coverage also often extends to insured individuals that are struck by a vehicle while acting as a pedestrian. Covered expenses include hospital, surgical, chiropractor, dental, and funeral expenses. This might duplicate benefits provided
by your health insurer.
Rental reimbursement coverage or transportation expenses pay for a rental car if your vehicle is damaged by a covered loss. This coverage is usually purchased with a daily and total maximum. For example, $20 per day up to a total of $600.
Towing or Emergency Road Service coverage pays the cost of towing your car to a repair shop.
What To Do In Case Of An Accident
If you are in an accident, you should:
Remain calm.
Telephone the proper authorities and inform them of any injuries. Regardless of the circumstances, report the accident to the police.
Check for any injuries and administer first aid if necessary.
Record the name, address and phone number of the other driver. Always write down the make and license number of all vehicles involved.
Collect the names, addresses and phone numbers of all passengers and witnesses.
Take photos of the accident scene if possible.
Do not admit fault.
Ask the investigating officer how to obtain a copy of the police report.
Notify your agent or insurance company immediately.
Key Points to Remember When Considering an Auto Policy
Your auto insurance policy will financially protect you up to your policy limits for auto damage or injuries resulting from an auto accident.
Be aware of the types of coverage offered and what is required in Oklahoma.
Review your auto policy and stay informed on what and whom your auto policy will cover.
Know your state's minimum amount of liability coverage required, and decide what amount is best for your situation. Oklahoma's minimum is 25/50/25.
The state in which you reside will have either a tort or no-fault system in place. Oklahoma has a tort system.
Know how to file a claim with your insurance company.
When an accident occurs, know what to do to protect yourself and others around you.
The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state. Consumers who would like more information are encouraged to contact the Department's Consumer Hotline at (800) 522-0071.
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.View the original article here
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