Words such as "premium" and "deductible" may be foreign to some people. Many of us do not really understand the terminology thrown at us by big insurance companies. So how do you effectively compare and receive the best rates if you do not understand the language? Understanding all involved factors when it comes to auto insurance coverage is the first and most important step to ensuring that you have the correct coverage for your individual needs.
Requirements in most states say that drivers must carry some auto insurance. When purchasing an auto insurance policy, there are several factors to consider. There will be a certain amount of required coverage and then additional "optional" coverage choices as well. Some available coverage may include:
Liability – This is usually the minimum requirement in most states for auto insurance policies. This level of coverage protects the injured in the case of the driver's neglect. It covers just the damages to the other involved car and passengers in an accident. It will likely not include expenses for things like medical bills, lost wages (accumulated due to not working) and pain and suffering. It may also cover damages to other people's property and vehicles, and may even cover legal defense and involved court fees.
After finding out the laws in your home state and minimum requirement for auto insurance coverage, you may then assemble a customized auto insurance policy. Liability insurance is generally the first coverage option for most drivers. Many may even carry only liability insurance, but this can be very risky. If the liability option does not cover damages incurred by the other driver completely enough, you may be financially liable for the remaining costs and that driver and their lawyer may file suit against you for these expenses. Some additional insurance you may purchase that can help keep you from having to pay the extra expenses out-of-pocket include:
Collision – This covers your vehicle in the event that another driver hits you with their car and causes damage to your car.
Comprehensive – This covers various other damages to your vehicle that do not happen in an accident, such as, vandalism, hail, theft, fire, wind, or flood.
Medical Coverage – This takes care of a person's medical expenses without regard to fault.
Personal Injury Protection (PIP) – This pays for medical expenses of the insured driver.
Uninsured Motorist –If your vehicle is hit by someone else's vehicle and the driver is uninsured, this type of coverage will usually take care of your damages.
Underinsured Motorist – This type of coverage pays for any added expenses beyond what the at-fault driver's insurance will cover.
Rental Reimbursement – This pays for a rental vehicle while your vehicle is under repair.
You may choose from many of these types of coverage by just adding and subtracting based on your financial capabilities and state requirements. After selecting the coverage that is right for you, you can compare auto insurance quotes from a number of insurers on our site. Be sure to read the details. One company's Underinsured Motorist Coverage may not cover with exactly the same amounts as another company's, or their Uninsured Motorist Policy may have different requirements. Be sure to read the terms of each policy carefully to shop and compare effectively!
Words such as "premium" and "deductible" may be foreign to some people. Many of us do not really understand the terminology thrown at us by big insurance companies. So how do you effectively compare and receive the best rates if you do not understand the language? Understanding all involved factors when it comes to auto insurance coverage is the first and most important step to ensuring that you have the correct coverage for your individual needs.more...
Many may wonder how their auto insurance quotes will be affected based on whether they opt to buy or to lease a vehicle. The truth is that there is not really a difference between the two options when it comes to auto insurance quotes. Insurers are concerned, primarily, with the state of your driving record and the specific type of vehicle you want to insure. Rates are based on what risk you pose to them as a driver and the amount they may have to pay out if you are in an accident. They are not concerned with whether you have leased or purchased the vehicle, as they will have to insure it the same way, regardless of ownership status.more...