Low Cost Insurance
Insurance Quotes?
Learner's Permit
Who's Insured?
Find a Low Quote
Car Insurance
Why buy car insurance? Primarily, because it's required in all states that drivers carry at least a minimum amount of liability coverage. But why is it required? For protection. Car insurance is designed for financial protection in the event of a car accident, theft, vandalism, or a natural disaster. Any driver knows how crazy it is out on the roads, and sometimes accidents happen. In those times, it's a comfort to have the protection of car insurance.
Different types of insurance are available to cover property damage and/or personal injuries. Beyond the minimums required by law, many people choose additional insurance coverage to make sure they are adequately protected. It is also common for auto loan lenders to require a minimum amount of insurance coverage as well.
Liability Insurance
A minimum amount of liability coverage is required by state law in all states. There are several types of liability coverage, although the required types and amounts of coverage can vary by location. Bodily injury liability protects the assets of the driver in the event he or she is held liable for a car accident that involves the death or injury of other people. Property damage liability covers the repair or replacement of other peoples car or property if the driver is held liable for the accident. Uninsured/underinsured driver coverage will provide coverage to the insured in the event of an accident with someone who has little or no car insurance. This may not be required in “no-fault” states where a drivers own policy already covers the losses.
Collision Insurance, Comprehensive Insurance, and Medical Payments Insurance
In addition to liability insurance, other types of insurance coverage are available. While these are usually optional coverages in most locations, unless a driver can afford to pay for the damages on his or her own, it often makes good sense to purchase them. Collision insurance covers the cost of repair or replacement of the drivers car if it's damaged in an accident. Comprehensive insurance covers the cost of damage caused by something other than a car accident, such as theft, fire, flood, or vandalism. Medical payments insurance, also called personal injury protection, will pay for various medical expenses that are not covered by any other car or health insurance policies.
Deductibles, Exclusions, and Limitations
Even when a driver pays for car insurance, the insurance company does not pay for everything. When shopping for car insurance, pay attention to the deductible amounts, exclusions, and limitations of the policy. The deductible is the amount of money the insured must pay before the insurance company will pay. An exclusion is an event or situation that is specifically not covered by the policy, such as intentional property damage or personal injury, or damage caused by mechanical failure. Insurance policies have maximum amounts that they will pay, so any costs above these limitations will be the responsibility of the insured.
Car Insurance Discount
Shop Around
Shopping around for car insurance will help you find the company and policy that is right for you. Some insurers will be a good fit for your profile and budget, but others may not. As far as cost is concerned, rates can vary widely from one insurer to another, so there can be substantial savings found by shopping around. Cost should not be the only consideration though. Other factors to consider when looking for car insurance are the track record of the insurer (information can be requested from the state's department of insurance), whether the types of coverage offered by the insurer meets your needs, and if you qualify for any discounts. It's important to compare multiple insurance companies and rates and find the best rate and the best policy for your needs.
Car Insurance Discounts
Many factors affect the amount of a persons insurance premium, including a persons age, location in which one lives, the make and model of the car, and one's driving record. The amount of risk that the insurance company must accept to insure someone, affects the premium. Discounts are often offered by insurance company for things that lower their risk. Many car insurers offer good driver discounts (no tickets or accidents on one's driving record), good student discounts (high school and college students with at least a 3.0 average), multi-policy discounts (use the same insurer for more than one type of policy, such as homeowners insurance), safety or anti-theft devices discounts (such as airbags, seatbelts, and alarm systems), low-mileage discounts, senior discounts (if no longer employed), or discounts for completing safety driving courses. Make sure you ask about discounts, it could save you money on your car insurance.