Car Insurance Coverage

In order to properly shop for cheap car insurance coverage and subsequently make educated decisions, it’s beneficial to have some basic background knowledge regarding car insurance terms and coverage types. The following information will provide you with a great understanding of car insurance coverage to better prepare you to compare car insurance quotes and ultimately choose the best insurance provider for your needs.

State Minimum Requirements

When comparing insurance quotes, it is important to know the minimum requirements in your state of residence. This prevents you from being underinsured as well as from paying higher car insurance rates.

While purchasing more than the minimum requirement is an option, cheap car insurance rates can be successfully acquired by buying the lowest yet legal state minimum coverage. When looking at car insurance quotes, it is important to compare the car insurance coverage limits fairly among policy prices.

Property Damage and Bodily Injury Liability

Most states require property damage and bodily injury liability, however sometimes the minimum requirements may not be adequate depending on the specifics of an at fault accident.

For example, if an insured driver is at fault in an accident involving multiple vehicles, the minimum requirements may not be enough to cover the resulting damages, repairs, injuries, medical bills, claims, and lawsuits that may be filed. Thus, most insurance agents advise their customers to get the highest liability limits they can afford.

Liability Car Insurance

Liability insurance covers others that are injured as a result of an accident caused by an insured driver. Liability car insurance does not normally cover the at-fault insured driver or any passengers in their vehicle.

Moreover, liability coverage does not cover the at-fault driver’s car. Due to these concerns, it is essential when comparing auto insurance rates to have sufficient coverage because it applies to both property and bodily injury.

Property Damage Liability

Property damage liability is coverage to protect property that is damaged as a result of the at-fault insured driver. It covers any vehicles that are damaged as a result of an accident caused by the insured. It also covers any property that is damaged such as a fence, a mailbox, a brick wall, or any other type of property. However, this liability does not normally cover the insured driver’s car.

Bodily Injury Liability

Bodily injury liability covers people who are injured as a result of an accident caused by the insured. Since any injuries or deaths are the responsibility of the fault driver, it is a good idea to invest in higher limits. Bodily injury liability covers medical bills, pain and suffering, and loss of income if the injured party is unable to work as a result of the accident.

Uninsured/Underinsured Motorists

Uninsured/underinsured motorist coverage is insurance that covers the insured driver if the accident is not their fault and the person that caused the accident is either uninsured or underinsured. The coverage pays for injuries, damages, and death to both the insured driver and all passengers in their vehicle at the time of the accident. Limits for this insurance are important because expenses are only covered up to the policy limit.

Comprehensive and Collision Coverage

Comprehensive insurance coverage pays for damages to the insured’s vehicle as a result of theft, fire, weather damage, hitting an animal, glass breakage, and other damages not covered under collision car insurance. The deductible applies when a claim is made for covered damages. Other physical damages fall under collision, which covers the insured’s auto if it hits or is hit by another car/object, and the deductible applies as well. Generally, as the deductible increases, the insurance rate becomes cheaper.

While these types of car insurance coverage should provide you with a solid foundation to compare car insurance quotes, it is still important to go over the policy carefully and ask about anything that is unclear. While getting affordable car insurance is important, it is equally important to get adequate coverage.