Motor vehicle collisions and other auto-related mishaps result in billions of dollars in property damage, medical and legal bills and lost income every year. Car owners need to protect their vehicle and themselves with auto insurance, but how do you know if you are properly covered.

It’s not enough to simply have car insurance. Car owners should be aware of what their insurance covers…and what it doesn’t. Better Business Bureau advises of Southern Arizona:

Understand the insurance coverage you are buying. Compare the different types of insurance and choose the coverage that best suits the vehicle you own and your financial situation. Most jurisdictions require you to carry liability insurance in case you are at fault in an accident. But if your car is relatively new or if you still owe money on it, you will want to consider collision insurance, as well.

Know and monitor the condition of your vehicle. When considering a new car purchase, think about maintenance costs. Cars that are expensive to service and repair are often targets for theft. If you are buying a used car, ask to see the title, check all the gauges, and consider getting a vehicle history report, which will tell you if the vehicle has ever been in an accident or flood.

Report damage to your insurance company as soon as possible. If you are in an accident, or if your vehicle suffers damage from severe weather, contact your insurance agent or claims center right away. They may be able to save you money and may also arrange to have your car towed if it’s not drivable.

Get to know your mechanic. Have them explain the repair process to you and get estimates in writing for large service jobs.

BBB rates tens of thousands of insurers, car dealers and auto repair facilities. Be sure to check out bbb.org before buying, insuring or repairing your vehicle.

With hundreds of auto insurance companies writing policies offering a variety of coverage options, shopping for a policy has become such a confusing ordeal that many people don’t bother to comparison shop, ending up paying more than they need for premiums.

Driving expensive high-performance cars, getting stopped for moving violations, putting a lot of miles on your car each year, and having a young driver at home can run up your insurance costs sharply. But how big a premium you pay also depends on the levels of coverage you buy, so consider your choices carefully.

There are discounts available to auto owners that could help shave dollars off your premium. In most instances, you’ll have to inquire about the rate reductions for which you may qualify; agents don’t always volunteer this information. To help you save money on your premium, Better Business Bureau of Southern Arizona suggests you consider the following:

• Combine policies with one carrier. Most owners with two or more cars will know that it makes sense to insure all their vehicles under one policy. But you can also get a multi-vehicle discount if you insure a trailer or recreational vehicle on the same policy as your car. Also, many auto insurers will reduce your car premium if you buy other coverage from them, such as, homeowners’ and life insurance. But don’t switch carriers unless the rates for the other policies are competitive.
• Buy a car that costs less to insure. Expensive high-performance cars are fun to drive, but they’re costly to repair and the premiums can run two to three times higher than less expensive cars.
• Equip your new car with safety gear. An approved alarm system or other devices that deter thefts can get you a savings of five to ten percent. Air bags for both driver and passenger can reduce injury, and costly medical bills in an accident, and may qualify you for a discount.
• Maintain a good driving record. No claims or traffic tickets for 36 months may qualify you for a reduced premium. Drivers over the age of 50 with a clean driving record may also claim a rate reduction.
• Use public transit or a carpool to get to work. Drivers who hold their driving below 7,500 miles a year generally qualify for a discount, and lessening or eliminating your use of a car to commute can trim your premium.
• Having a teenage driver in your home with a good academic record, can qualify you for a discount. Also if your child attends a college that is more than 100 miles from home and doesn’t take a car along, that may qualify you for a discount. If you own more than one vehicle ( and your insurance company allows it), add the teenager to your policy as the occasional driver of your least expensive car – and make sure he or she drives that car only.

For more consumer tips and news you can trust visit www.tucson.bbb.org.

Fender benders and other vehicle mishaps result in billions of dollars in property damage, medical and legal bills as well as lost income for motorists every year. The right insurance policy can protect consumers from serious financial losses – and keep them in compliance with laws in states that require motorists to carry insurance.

Better Business Bureau advises consumers to make sure they understand the coverage they’re buying so they avoid buying coverage they don’t need – or fail to purchase coverage that will protect them in case of a serious accident. Consumer complaints about coverage often concern delays in handling claims or misunderstandings about billing, so it pays to read policies carefully and check to see if others have filed complaints with BBB.

“Insurance can be a confusing topic, but BBB has tips that can de-mystify buying coverage,” said Kim States, BBB President. “By boning up on the basic terms and shopping with at least three different companies, consumers can feel secure in their decisions about which insurance to buy.”

The basic types of coverage include:

• Bodily Injury Liability. Pays your legal defense costs and claims against you if your car injures or kills someone. Covers family members living with you and others driving with your permission.
• Property Damage Liability. Pays your legal defense costs and claims against you if your car (more…)