Everyone is scrimping and saving these days, but most people don't realize that a car insurance comparison can save you hundreds of dollars per year. It's a good idea to find several reputable insurance companies and compare what they offer in pricing as well as coverage. Do some research to be sure the companies are financially stable and can provide excellent customer service. Then compare the types of coverage offered and how much the premium will be for each type of coverage. Before you can do this, however, you should have a general understanding of the types of auto insurance coverage available and how each will affect you in years to come. Let's explore the types of coverage and what each means when shopping for insurance.
Buying Liability Coverage
Every state requires you to carry a minimum amount of liability insurance. Liability coverage covers damages caused to another vehicle if you are in an accident that is ruled to be your fault. Check with your state to find out what the minimum liability amount is, or ask a reliable insurance agent in your local area. Keep in mind that this is only a minimum, but you might want to purchase more to be sure you'll have enough coverage if an accident does occur. If you don't have enough coverage, the expenses of an accident could easily exceed your coverage and put your personal assets at risk.
There are two types of liability coverage: property damage liability (PDL) and bodily injury liability (BIL). A few states do not require BIL insurance, but it's still a good idea to purchase this type to protect yourself. Claims for BIL can include pain and suffering, loss of income and medical bills....these can add up in a hurry! Since you are required to carry some form of liability insurance, it's wise to use an online auto insurance comparison site to compare companies and their pricing for liability policies. Then see what each has to offer beyond liability. Some offer discounted policies just to gain you as a customer and will include several types of coverage.
Uninsured and Underinsured Motorist Insurance
Uninsured motorist insurance provides coverage for you and your household or passengers if an uninsured motorist causes your accident. Coverage may include bodily injury, damages or death caused by an uninsured motorist or even a hit-and-run driver. Underinsured motorist insurance provides coverage in the event that you are in an accident and the at-fault driver doesn't have adequate insurance to cover the damages. Your insurance coverage will kick in to cover the excess amount to eliminate or at least reduce your out-of-pocket expenses. Some states (but not all) require these two types of insurance as part of their minimum requirements. Both types are available for bodily injury and/or property damage coverage.
Collision and Comprehensive
Collision insurance coverage is not required by law, but may be required by your lender if you still owe a monetary balance on your vehicle. Collision covers damage to your own vehicle if you are at fault and cause an accident. This pays to fix your vehicle once you've met the deductible, but only up to the current book value of your car. If you drive an older car and owe no money on it, consider dropping this type of coverage. It will decrease your car insurance premium drastically. Also, consider the value of your car. Many older cars aren't worth fixing once you find the actual worth of the vehicle and the cost of repairs....unless it's a prized classic automobile. Then collision coverage might be worth the premium!
Comprehensive insurance is available if you wish to protect your car from other types of damage, including damage from storms (hail, tornadoes, hurricanes, etc.), fire, theft or vandalism. This usually covers replacement of glass if a rock or tree limb hits your window or your window breaks as a result of hitting an animal.
Other types of coverage to consider include medical payments to cover medical expenses for you and your passengers, personal injury protection (PIP), Gap insurance, work loss insurance, towing, and rental car reimbursement. Keep in mind the more coverage you choose, then the more your premium will be. So choose coverage wisely based on your needs and budget.
Use car insurance comparison websites to see what each company has to offer based on your age, type of automobile, number of drivers, etc. Once you narrow your search to a few reliable providers, ask about safe driver discounts and other ways to save money. Also, compare rates with a higher deductible to see how much this will save on your premium. Armed with these facts about the types of coverage available, you might be pleasantly surprised at how much money you can save by taking a few moments to do a car insurance comparison.
To learn more about subjects like car insurance comparison please visit the web site at: http://www.onlineautoinsurance.com/compare/
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About the Author
Chris Robertson is a published author of Majon International. All Rights Reserved. Copyright 2011 (Mon Jan 11 2010) Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource internet marketing web site at: http://www.majon.com
