Car insurance can be confusing because there are a lot of different options to consider when signing up. And it can be tough because car insurance is mandatory, and with limited time you want to ensure you find adequate car coverage. Here is a quick summary of what you need to know so that you can make the most of calling around for a motor insurance quote.
Liability
Liability insurance is the most basic coverage you can have, and it is what most states require as a minimum to drive a car. This type of insurance covers your liability for damage and injuries for which you are responsible. It also usually provides for legal coverage should you be sued as a result of the accident.
It is important to note that this coverage only covers you up to a certain amount (usually $100,000 or $300,000), so you will be on the hook for anything above that.
Collision
Collision is the next level of insurance available. This not only covers liability, but it covers damage to your car if your car is in an accident or is hit by another vehicle. This insurance pays to fix your car from the damage it received from the accident. Depending on your coverage, it may also covers a rental car while your car is being repaired.
Comprehensive
The most generous insurance plan is comprehensive, which not only covers liability and collision, but it covers other losses as well. Some common examples of other non-driving related losses include theft, fire, or struck by animal. Depending on what options your insurance company offers, you can get various other covers as well. A common one is car breakdown cover, which offers roadside assistance and towing should your car breakdown.
Another cover that is becoming increasingly popular is pet insurance cover. This provides liability protection for your pet while riding in your car. Should you get in an accident and your pet is injured, this insurance will help cover the costs.
There are many other options to consider when purchasing insurance, so make sure that you do as much research as possible to get the best price.
Enjoy this contribution from our supporters.
In Los Angeles, there are a lot of uninsured motorists although it is against the law. The uninsured motorist portion of automobile insurance is important and relatively cheap. I had a bicycle accident with an uninsured motorist and increased my coverage after the accident. Although my accident was small, I realized it could have been worse!
In NC, our uninsured motorist insurance is actually rather pricy – I wonder what contributes to the difference?
When we had our old car (worth maybe $3,000 total) – we took off the comprehensive coverage, and saved a ton of money. May as well, since our deductible was $1,000
Great breakdown on car insurance. My car which is still running nicely doesn’t have much value left so I’m saving on insurance by going for bare bones coverage.
I can understand why people with lower value cars going for Liability cover only
Hunter what’s the reason behind changed posting schedule?
Also, if you use public transportation normally. You can set your car insurance to “leisure” to save money.