If you drive a car in the United States, you are required by law to be financially responsible. For the vast majority of drivers, that means that they will be required to carry auto insurance. Every state in the country requires drivers who are not self-insured to carry a liability insurance policy that meets state mandated minimum limits. Failure to meet your states minimum liability insurance requirements could result in stiff fines and penalties. Drivers should be aware that having the proper auto insurance can be a key part of protecting their financial future. Before a driver begins searching for auto insurance quotes, they should consider the amount of insurance that they want, as well as the type of coverage’s that they want to carry. While drivers are required to carry liability insurance, most will carry other optional coverage’s to protect themselves and their personal property.
Types of Coverage’s
Liability Insurance
Liability insurance covers the damage to another individual or their property. Liability insurance is required by law, and each state mandates the minimum amount of liability insurance that drivers must carry. The average minimum amount of liability insurance that states require is as follows.
- $20,000 per person for bodily injury
- $40,000 per accident for bodily injury
- $20,000 per accident for property damage
When buying auto liability insurance it is important to remember that, meeting the states required minimum liability requirements, does not relieve a driver from liability if the cost of an accident exceeds the minimum liability amount. If a driver is at fault in an accident, they will be responsible for all expenses that are a result of that accident. The cost of damages in a serious auto accident could far exceed the minimum liability limits. Experts recommend that drivers get at least $500,000 in liability coverage.
Collision Insurance
Collision insurance covers the cost to your vehicle if it hits or is hit by another vehicle or other object. Collision insurance is not required by law but may be required by the titleholder if you lease your car or have a car note. With collision coverage, your insurance company will pay for all repair expenses that exceed your deductible regardless of who was at fault. When purchasing collision insurance, it should be remembered that, the insurance company will not settle a claim that is for more than the cash value of your car. If you car is old or does not have much value, it might be wise not to carry collision coverage on your policy.
Comprehensive Insurance
Comprehensive insurance covers your car for losses resulting from accidents like theft, vandalism, fire storms or acts of God. Like collision insurance, comprehensive insurance is not required by law but may be required by the titleholder if you lease your car or have a car note. When purchasing comprehensive insurance it should be remembered that, the insurance company will not settle a claim that is for more than the cash value of your car. If you car is old or does not have much value, you could save money by not carrying comprehensive insurance on your policy.
Roadside Assistance
Roadside assistance coverage is a popular coverage, because it provides for free tow truck service, if you need to have a tow, a battery jump or a flat fixed.
Rental Car Reimbursement Coverage
Another popular coverage is rental car reimbursement coverage, which reimburses you if you have an accident and your car is in the shop for repairs.
Insurance Quotes
When you begin searching for car insurance quotes it is best to look and compare quotes before making your purchase. In the past people would make phone calls, or actually visit the offices of insurance agents or brokers to get quotes. Nowadays the easiest way to get quotes is by using the internet. Instead of calling around or making trips to different insurers you can use the internet to get free instant quotes from dozens of top flight insurers.
Getting insurance quotes on the internet is easy. All that you have to do is enter an insurance website and fill out a short questionnaire. Within minutes, you can have a multitude of quotes from competing insurers. You can then compare quotes side by side in the comfort of your home. Since you are at home, you are under no pressure and can take your time when comparing quotes. In the end, you will save money like millions of others have.
Making a Purchase
Using the Internet can also make purchasing insurance easy. Many drivers are able to complete an application and purchase their insurance within one hour. When you are shopping for insurance, you will want to consider more than just bottom line price quotations. You will need to think about the policies total coverage package. That means you will want to know the following:
- Does the policy meet your states minimum required liability requirements?
- What is the deductible?
- How much liability coverage do you have for the injury or death of one person?
- How much total injury and death liability coverage do you have?
- How much property damage coverage do you have?
- Do you have enough collision coverage to replace your car in the event of an accident?
- Do you have enough comprehensive coverage to replace your car if it is stolen, vandalized or destroyed by an act of God?
- Will you and your family be covered if someone is hurt in an accident?
- Does the policy give uninsured/underinsured motorist coverage?
This is all information that you should know before you make your final decision to purchase a policy.
When purchasing insurance be sure to choose an insurer that has a proven track record. Purchasing low cost insurance from an inferior insurance provider can prove to be an extremely costly mistake. After all what good does it do you to purchase insurance if you cannot collect on accident claims?
You should also be sure to compare a variety of quotes from competing insurers. When you compare quotes, you will find that insurance rates vary widely from company to company. Comparing auto insurance rates is essential, because in some cases, you can pay more than double for the same insurance.