June just ended her mobile phone conversation. Her car insurance agent was on the other end. Her face showed disgust. She just had to tell her good friend what had happened. She dialled Jan's number, waited a while, Jan's voice was on the other end.

June :"Jan, Ben my car insurance agent cheated me!"
Jan :"What happened June? Ben the one your ex boyfriend introduced to you?"

June :"That's the one. Remember 2 months ago I told you that he quoted me 10% cheaper than what you were paying? I am talking about covering my car against vandalism inclusive. He called me just now to tell me the premium I am paying doesn't cover my car against vandalism. I have to pay 20% more to have it included."
Jan :"That's not nice. You can break it anytime, can't you?"

June :"Yes, but I will lose something like 20%. I have to check the figure again though. Is your car insurance company good?"
Jan :"My car insurance company is quite reputable. So far their service is good. Want some tips to insure your car the cheap and safe way, June? I got them from my friend in the cooking class."

June :"Share them with me."
Jan :"Sure. Only deal with reputable companies. They normally wouldn't do things that can harm their good reputation. Shop around, compare and get the best of their quotes."

June :"I should've done that. That's one, the others?"
Jan :"You could raise your deductible, it will reduce your car insurance rate. Try to insure your house, second car, boat...everything with one company. This company will most probably give you its best discount. Show the proof that you have no bad driving record. A good driver gets a lower rate than a bad one. Buy a low profile car that thieves don't find worthy stealing (laugh). The more likely your car is to get stolen the more it will cost to insure. There you go June."

June :"They are good tips. Thanks Jan, I am feeling better now."
Jan :"You are most welcome, June. Take care."

June decided to learn more about car insurance. She looked up the yellow pages and started dialling.

June :"Hi, I am June. I am planning to have my car insured. Can you help me?"
Car insurance agent :"You call the right place mam. What sort of coverage do you plan for your car?"

June :"I still don't know yet. Can you tell me the coverages you can offer, so I can choose later?"
Car insurance agent :"Certainly. We have 'liability insurance', the basis of all auto insurance policies and the minimum required in most states. If you are found at fault in an accident, it pays for the injury and property damage expenses of the third party involved in the accident. Property damage pays for the replacement or repair of anything that was damaged. Bodily injury expenses cover lost wages and medical bills. It is suggested that you buy more than the minimum required by your state, so that you get covered sufficiently should you cause a major accident."

June :"What about the one that pays for my car repair?"
Car insurance agent :"That's 'collision coverage'. If you're found at fault in an accident, it will cover expenses needed to repair your vehicle. Collision coverage is usually the most expensive component of an auto insurance policy. In cases where the repairs exceed the market value of the car, we would just proclaim your car a 'total loss'. If this occurs, we will pay you the actual cash value, minus the deductable. From there your car is off to an auction where it will be sold for parts or scrap."

June :"How is the actual cash value determined?"
Car insurance agent :"Ok, actual cash value is the value of your car when it is damaged or destroyed. We figure it by subtracting the depreciation from the replacement cost. Depreciation is the decrease in value due to age and wear on vehicle, whereas replacement cost is the amount required to replace your car or repair damages without considering depreciation."

June :"What about the one that covers damages caused by earthquake, riot and other non traffic accident stuff?"
Car insurance agent :"That would be 'comprehensive coverage'. It will pay for damages to your vehicle that were not caused by an accident. This includes fire, vandalism, theft, natural disaster, and even animals. Depending on the damage, we will pay the car's worth right before the incident. This is an optional coverage. That's about all, mam. Take your time to think about which one suits you best. Call me whenever you have more inquiries or whenever you have decided to buy one for your car."

June :"Thank you, you are very helpful. What did you say your name was?"
Car insurance agent :"My name is Bon, mam. Bon Bon. You are most welcome."