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Oklahoma Car Insurance Basics

If you live in the state of Oklahoma and you own and operate a vehicle, you are required to maintain vehicle insurance. Until you understand what the state of Oklahoma's insurance requirements are, you will not be able to select the forms of coverage that will provide adequate coverage. Currently, the average cost of Carmobile insurance premiums in Oklahoma is $2,063. By comparison, the national average for premiums is $1,807. The month of August saw the most noticeable increase in premiums with an average of $2.363 per policy. The insurance rates for Oklahoma are currently 15% higher in the year 2009 than they were for the year of 2008.

The state law in Oklahoma requires minimum Bodily Injury Liability limits of $25,000 per injured person up to a total of $50,000 per accident, and Property Damage Liability coverage with a minimum limit of $25,000. These limits are referred to as 25/50/25 coverage. The state of Oklahoma follows what is called a Tort system when it comes to dealing with Carmobile collisions. Under the guidelines of this law, one party in an accident is determined to be at fault. This party and their insurance company then assumes the financial cost of all medical expenses and property damage repair costs incurred by other motorists in the accident. Because Oklahoma only requires liability insurance coverage, you may want to consider purchasing other forms of coverage to guarantee that you are adequately protected.

After you have purchased your Carmobile insurance policy, you should familiarize yourself with its contents.

Your declarations page - The very first page of your policy is known as your declarations page. It is probably the most important page of your policy because it acts as the quick reference guide for the rest of your policy's content. At the very top, you will see your insurance company's name, along with your policy number. This is followed by your personal information, like your name, address, and phone number. Next comes a list of other drivers who may be listed on your policy, along with their respective information. You will also see the dates that tell you the validity period of your policy. Then, you will find the most important part of your declarations page. There will be a list of the cars, and their registration numbers, as well as a list of the types of coverage each vehicle carries. This information will include the types of coverage, the coverage limits, and the amount of your deductible in the event that you must file a claim. It is highly advisable that you analyze this information in order to make certain that it is correct. If any of the information on your policy is found to be invalid, an insurance company can legally deny any claims you file after an accident.

Agreement on Insurance Coverage - The next portion you will come upon as you study your insurance policy will be the section that details you and your insurance provider's agreement on your insurance coverage. The content of this page will state the coverage limits you have purchased in your policy and what scenarios and situations are covered underneath this coverage. According to your personal selection, you may see any of the following forms of coverage listed: liability, collision, comprehensive, personal injury protection, or uninsured motorist coverage. Under the content of the agreement, there will be a listing of the amounts you will be paying in car insurance premiums each month, and there will be the specifications about the type of coverage and the limits of said coverage that the insurance company has agreed too. Because an insurance policy is considered to be a contract, the agreement and its underlying clauses are considered to be legally binding.

Exclusions - The next portion of your policy states the scenarios and situations that are excluded from the scope of your insurance policy, as well as the limitations within which the policy must function. It will provide a clear definition as to what sort of claims you can make with the insurance company when you are involved in an accident. The exclusions are based upon the types of coverage you selected. You should peruse the list of exclusions carefully. If you see a potential situation you would like have covered under your insurance, you can have it added to your policy by using a rider. However, you should be aware that it may result in your premiums rising slightly.

Loss Payee - This section of the policy lists any person or company who is has a lien on the ownership of your car. A loss payee retains the right to payment in the event that your car is totaled by your insurance company. An example of a loss payee would be your financing company or your bank. For example, let's say you purchase a car for $20,000, and you are financed through a bank. You pay off $8,000 on the car. Then you are involved in a car accident, and the car is subsequently totaled. If the current market value of the vehicle is $13,000, this is what the insurance company will offer as a settlement. The bank will receive $12,000 to satisfy the conditions of your loan, and you will receive the remaining balance of $1,000.

Terms and Conditions - The terms and conditions portion of your policy should follow the exclusions section. The terms and conditions explicitly specify what your legal obligations are under the terms of your policy. It will also dictate what the legal obligations of your car insurance company are. The content of the terms and conditions include the schedule of your premiums payments, how to go about filing a claim, and the procedures used to resolve a dispute you may have with your insurance company about a claim. It is important to study this section should you ever need to follow any of these procedures.

Definitions - This section of your policy acts as a glossary of sorts for your reference. You may have heard this section referred to as the "fine print" of a policy. The definitions for the jargon and legal language used in your policy can be found here. The fine print will define your rights and options under the terms of your policy, as well as those of your insurance company. A thorough understanding of the fine print is necessary in order for you to understand any double entendre that may exist in your policy. If you have questions or lingering concerns, do not hesitate to contact your insurance agent to make further inquiry.

Signature - This is the absolute final portion of your insurance policy. It will bear the signature of a company representative, and you will sign it upon the time of the policy purchase. For policy purchases made online, an electronic signature will suffice in lieu of a physical one.

Before you purchase a policy, you should make certain that you are thoroughly educated about the insurance requirements of your state. Next, you should take stock of your vehicles in order to make certain that your insurance coverage adequately protects your assets. Should you become involved in an accident in the future, you will be able to rest assured that you are adequately protected.


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