Free Auto Insurance Comparison

Compare Quotes from Top Companies and Save

Auto Insurance Companies

Car Insurance Policy

Buying an auto insurance policy can be challenging for the average consumer. Most car insurance policies are not written in language that is easy to understand. If you want to make good decisions about buying an insurance policy for your car, you need to take the time to educate yourself. Once you have done your homework, buying a policy for auto insurance won’t seem like such a daunting task.

Car Insurance Policy: Types Of Coverage Available 

When you are looking for an auto insurance policy, you need to understand the various coverage options available. Depending on the state where you live, you will be required to carry a certain level of insurance coverage. However keep in mind that in many cases, carrying the minimum level of coverage is not enough to protect your assets.

  1. Liability Coverage – Liability coverage pays for damages/injury to another person, their vehicle, or property as the result of an accident for which you are at fault. With this coverage in place, your insurance company will pay for the cost of legal action taken against you as the result of the accident.

    Liability coverage is made up of two components: bodily injury and property damage. Bodily injury coverage pays for an injured person’s medical expenses and loss of income due to an accident. The property damage component pays for damages to another person’s vehicle or property, such as a mailbox, garage or other structure.

  2. Collision Coverage – Collision coverage pays benefits to you when your own vehicle is damaged in an accident. You are not required to buy collision coverage by the state, but without it you will need to pay the full amount of costs to repair or replace your vehicle on your own in case of an accident. If your vehicle is financed, the finance company usually requires you to carry this type of coverage and comprehensive coverage. (In case of claims, the lender and you would be listed as the party to whom any benefits would be paid by the insurance company.)
  3. Uninsured/Underinsured Motorist Coverage (UM/UIM) – Even though it is illegal to drive without auto insurance, some drivers either don’t have insurance coverage at all or don’t have sufficient insurance in place to pay for damage to your vehicle or your injuries if you are hurt in an accident where the other driver is at fault. It makes sense to buy Uninsured/Underinsured Motorist Coverage to protect you in this situation.
  4. Comprehensive Coverage – There are situations other than an auto accident where your vehicle may be damaged. Buy comprehensive coverage to compensate for damage to your vehicle sustained in the following situations: Fire, Theft, Vandalism, Falling Objects, and Some Natural Disasters.

  5. Personal Injury Protection (PIP) – Personal Injury Protection (PIP) provides additional protection to motorists for the following expenses in case of a motor vehicle accident: Medical, Dental, Funeral, Lost Wages, Rehabilitation, Psychiatric Treatment, Nursing Care, and Prostheses. PIP is not available in all states. Where it is available, it is usually a required part of your auto insurance policy, even if you already have a health insurance plan in place.

    If you are required to carry PIP as part of your car insurance coverage, check your health insurance plan to see what level of benefits you already have. You may only need to buy the minimum level of PIP to have adequate coverage. If you don’t have health insurance, then you should be looking at including the maximum level of PIP that you can afford.

    Skimping on this type of insurance is not a good idea, since you want to make sure your income is protected if you are hurt in an accident and that your medical expenses will be covered.

How To Get The Most Out Of Your Auto Insurance Policy 

  1. Buy a Policy That Combines A High Limit With A High Deductible – A high policy limit means that you are much less likely to have to pay anything out of your own pocket in damages if someone is injured in an accident where you are at fault.

    The insurance company will pay up to the policy limit only and you will be personally responsible for any other money owing. When you keep your deductible (the amount of money you will have to pay out of pocket before the insurance company pays for damages) high, your premiums go down.

    Just make sure that the deductible you choose is at a level you can afford to pay yourself.

  2. Compare Quotes From Several Insurers – It may be tempting to sign on with the first insurance company you contact, but it really pays to shop around. Check out rates and coverage options from multiple companies to make sure that you are getting the best auto insurance policy for you.
  3. Review Your Coverage at Least Once a Year – While it may be quick and easy to renew your existing policy with the same insurance company year after year, you may be able to get a better deal by switching companies. If it turns out that your existing company is giving you the best rate for coverage, then by all means stay with your present company.
  4. Ask Your Insurance Company or Agent About Available Discounts – Insurance companies offer discounts in a number of situations that you may not be aware of. Ask whether you can get a break on your rates if any of the following situations apply to you:
  • You Have Maintained a Clean Driving Record for a Number of Years (No Accidents or Moving Violations)
  • You Have Multiple Policies With the Same Insurance Company
  • You Have Been a Customer for Several Years
  • You Are a Student With a “B” (or higher) Average
  • You Are a College Student Who Will Be Going Away To School (and Won’t be Driving the Car When Classes Are in Session)
  • You Are Over 50 Years of Age
  • You Have Installed an Anti-theft Device in Your Car
  • You Don’t Put a Lot of Miles on Your Car Each Year

Get An Auto Insurance Policy Quote Now!

Are you looking for an auto insurance policy?

Get more information by clicking on the free car insurance quote tool at the top of this page to compare policies from multiple insurance companies.

Get started finding car insurance now!

Free Auto Insurance Comparison

Compare Quotes from Top Companies and Save

Copyright © 2024 Car Insurance Quote 360