Before you randomly call up a car insurance company and attempt to guess what policy is right for you, you may want to do a little homework. Ideally, you want the least amount of coverage, but the type of coverage that covers practically everything!
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You need to know the different types of car insurance available. Then you need to know how to source good rates on the types you need.
The Basic Types of Car Insurance Options
On the subject, do you know the differences between liability coverage, collision coverage and comprehensive coverage? It is best to start with the basics.
- Liability is basic coverage and legally protects you if you cause an accident and damage someone else’s car, property or body. If you damage someone’s property, be it their car or something else they own, and they demand payment, this is the insurance policy that will have your back. Some liability insurance covers medical bills and even legal bills, if it comes down to that. Usually though, this type of insurance prevents a personal injury lawsuit. This type of insurance is required by law in most states for all drivers.
- Collision coverage is the coverage you will be most interested in if you have a new car. This type of insurance pays the price of your totaled car if there is a major collision involving two or more vehicles or a cash amount if there is a minor collision (liability insurance only pays the other driver in an accident). Collision is what gets “your ride” back on the road.
This type of coverage can be pricy, as it has to cover the cost of a brand new car. Therefore, if you are driving a very old model that wouldn’t cost much to replace out of pocket, then you may want to skip this type of protection. On the other hand, if you are still making hefty payments on that new car of yours, collision insurance is often times required by the dealership or lender.
What are Comprehensive Car Insurance Options?
Comprehensive coverage is also very important, especially if you have a newer car. This covers acts of nature such as fire, flooding, hail and sometimes major catastrophes. This coverage also covers vandalism, theft and incidental minor damage.
What is actually covered by comprehensive insurance varies from company to company. If you are worried about something happening to your car other than a collision, then this is the policy you want. It gives you peace of mind and confidence that you can park your car anywhere.
Other types of car insurance to consider include personal injury protection, rental car coverage, roadside assistance and uninsured motorist coverage.
- Personal injury protection, also known as PIP, is a type of coverage that will pay if you are hurt in an accident. Medical bills for both you and your passengers would be covered. If you have a hefty medical insurance policy this auto coverage may not be required.
- Roadside assistance is a nice option for motorists driving older model cars, which are more likely to break down. Everyone can benefit from this policy, as you never know when a flat tire will hamper your trip.
- Uninsured driver coverage will help get you back on the road in no time, even if the person who hit you is uninsured and unable to pay you. This type of insurance also covers those terrible instances of hit and runs and even those little dings and dents that mysteriously happen in parking lots.
Where to Find Car Insurance Options and Discounts
Now that you know the basic types of car coverage it is up to you to sit down and decide exactly what is needed and how much you can afford to spend on insurance each month. No one wants to pay more than they have to, so be sure to look into any qualifying discounts. One of the best ways to save is to comparison shop online.
Getting multiple quotes from several insurance companies has never been easier than it is today! Look into local discounts such as good driver discounts, low mileage discounts, and safety feature discounts. If you are still young and in school then ask about the good student discount. If you are a senior, you may want to check with companies such as AARP or even ask your provider if they offer any senior discounts or long-time customer discounts.
If you are going green, then you can ask about a hybrid discount which is both good for the planet and for your wallet. The bottom line is you never know until you ask. You now have a good foothold on basic car insurance options. Research your car and learn what the most practical coverage options are. Then find a provider that is willing to work with you. The peace of mind that comes with being properly insured is satisfying…but the fact of the matter is, being insured for a minimum amount of coverage is the law!
You can start looking for car insurance options right now using our comparison tool. Go ahead and enter your zip code and get free car insurance quotes now!