If you just purchased your very first car and are interested in learning more about car insurance, or simply want to know if you have the best auto insurance policy, read on. Most drivers in the United States have car insurance, although in many states it is not a legal requirement if you are able to put down a financial deposit in lieu of car insurance.
Most people, however, prefer to know that they are covered by a trusted auto insurer in case of an accident or theft. Whether you’re in an accident that is your fault or the fault of someone else, or a natural disaster has affected your car, you can feel safe in knowing that your damages will be covered and you will not be liable to anyone else.
It’s extremely helpful to understand the different options for car insurance to make sure that you are getting the best deal.
Looking for Auto Coverage
Finding the best car insurance policy can feel a bit like finding a needle in a haystack. With so many different auto insurance companies and the various coverage options available, it can be nerve-wracking to figure out where to start and where to finish.
Auto Insurance Terminology
What is a Car Insurance Premium?
A car insurance premium is the monthly or the bi-annual payment you’re obligated to for car insurance.
What is a Deductible?
A deductible is the amount that you must pay prior to the car insurance company paying for damages or other expenses. The bigger deductible you choose, the lower your premium will be. However, before you choose the lowest monthly premium and the highest deductible, make sure that you will be able to come up with the amount of the deductible in case you will need to file a claim.
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Auto Insurance Coverage Options
The first step to purchasing auto coverage is to determine what coverage you need:
Collision Coverage
Collision coverage protects your car if it gets into an accident with another vehicle or hits an object, such as a tree. Once you pay the amount of your deductible, the car insurance company will cover the other costs.
Personal Liability
Also known as personal injury coverage, personal liability will pay for property and medical expenses for you and other parties involved in case of an accident. This is extremely important for people that do not have a separate medical policy. However, as you can’t be sure that your passengers or others involved in an auto accident have their own medical health insurance plans, it is advantageous to purchase personal liability coverage to make sure you’re not liable for the medical cost of others.
Uninsured Driver
The sad truth is that many drivers on the road do not have auto insurance, and even if they are responsible for an accident, you may have a very hard time collecting money for damages to your vehicle or your medical expenses. This is why it can be beneficial to purchase an uninsured driver coverage. Keep in mind that should you use this coverage, there is likely a deductible you will need to pay, but that is still better than being left with all of the payments for someone else’s mistake.
Personal Injury Protection (PIP)
Personal injury production will cover medical bills for everyone involved in an auto accident. Unfortunately, this type of coverage is not available in all states, but you can inquire about availability from the individual insurer you get quotes from.
To find the policy that is best for you, and one that is affordable at the same time, it is advantageous to get multiple quotes. Click here to put in your information once and receive various quotes from different auto insurance companies at the same time to help you make the best choice.
