Many people go about making auto insurance comparisons completely the wrong way. They lack a basic understanding of the different elements that make up the policies they are comparing and as a result they end up missing some of the very important differences that exist in each policy.
So first off let us discuss liability insurance in general
Liability insurance is required by most state’s laws, although the minimum amount of coverage required varies from state to state. Understanding those limits and what this coverage entails is very necessary in making an auto insurance comparison.
$24,000/$50,000/$24,000; does this look familiar? Those numbers represent the most common way to represent the limits of this coverage. The first number represents the maximum body injury liability for each person in an accident, the second is the overall maximum counting all passengers in the vehicle and the third represents the maximum property damage liability.
Using the numbers above for example, if a person is in an accident in which they are found at fault, their insurance will only cover up to those amounts.
So if you are in an accident where you are found to be at fault and the overall costs go beyond the limits of your policy you will find yourself having to come up with the remaining funds on your own.
The uninsured/underinsured protection coverage
There is a type of insurance available to help protect motorists from uninsured or underinsured drivers. This type of coverage varies depending on the state but can offer additional protection to the insured, generally for a nominal fee.
Comprehensive and Collision Coverage
Comprehensive and collegian coverage, also known as full coverage, will insure an individuals vehicle regardless of whether the accident is their fault or not. It also normally ensures the vehicle against other damage not cause in a car accident.
You can expect to end up paying quite a lot more for this insurance for obvious reasons. Properly assessing all other elements that make up this part of your policy is vitally important.
Numerically the number format you want to look out for is: $400/$400. Essentially what this means is that in the event of a claim you’ll have to pay out the first $400 worth of repairs and your insurance company will pay for the rest.
Optional towing coverage and rental reimbursement
There are a number of optional coverage features that can be in a policy which people often miss. These additional options can actually make quite a lot of difference to the overall policy so they really do need to be looked into.
For instance rental car reimbursement covers the policyholder up to a certain predefined amount for vehicle rental should the policyholders vehicle be in repairs etc.
Whereas the roadside assistance coverage option will open up a variety of emergency services to the policyholder, such as the towing away of their vehicle. Naturally this coverage will come with a host of limitations that will be stated in the policy.
What about medical coverage?
Required and optional medical coverage varies greatly from state to state. Some states require insured to carry “no-fault” medical which covers them in the event of an accident, regardless of fault.
In the States where this is not required you will find that there is a certain minimum you must have but that is all. Again understanding and fully taking into account medical coverage is vital in order to properly compare your auto insurance quotes.
In closing I would just like to say that sometimes we get caught up trying to find the cheapest price for things like auto insurance when very often the cheapest price is not the cheapest in the long run. When comparing auto insurance quotes take into account everything before you make your decision on who to go.
Low Cost Auto insurance isn’t hard to locate. Collect some quotes now by using our free Safe Auto Insurance resource.
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