What is the best auto insurance? There are many people who want to know whether or not they really have to get auto insurance on their vehicle. The simple answer to that question is yes. While the rules for this is different in a couple of states, even in those states you have to show proof of financial responsibility in order to go without purchasing auto insurance from an insurance company. Since everyone has to have auto insurance, the next logical regards which is the best auto insurance out there?
The answer to this question will vary from person to person, from situation to situation, from vehicle to vehicle and from state to state. It really isn’t as complicated as it may seem, but you need to understand up front that there are many different factors in determining what the best auto insurance is for you and even what company that you should choose.
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How Much Auto Insurance You Might Need
Choosing the amount of auto insurance coverage for your vehicle is determined by a couple of different things. The first thing is the value of your vehicle. The more your car or truck is worth, the more coverage that you want to have. Think about it this way, how much can you afford to pay out of pocket if you are in an auto accident? Additionally, if your vehicle is totaled, can you afford to continue making payments on it or to purchase a new vehicle without total coverage? Ensuring that you have enough coverage to cover the entire cost of your vehicle is important unless you have the financial means to cover it for yourself.
Another question that you are going to have to answer is whether or not your vehicle is financed. If you are making payments on your vehicle, whether you purchased it from a “buy here pay here” place or you have a more traditional lender, they are going to require you to carry full comprehensive coverage on your vehicle. Some will even go so far as to require a specific limit as well, which means you won’t necessarily be able to purchase the lowest comprehensive coverage for your vehicle. If you are in the market for a vehicle that you plan on financing, it is important that you find out up front what the lender is going to require you to carry.
Naturally, you are also going to have to carry the amount of insurance that is required by your state. This coverage requirement will vary from state to state, which is why it is important that you only work with insurance companies that are licensed to sell insurance in your state. It is highly recommended that you purchase more than your state’s minimum coverage so that if you have an accident your insurance will cover the total costs. It is rare for the basic insurance to cover any more than a mild to moderate auto accident.
If you drive a vehicle that is barely holding together and has no value, then this type of vehicle might be an exception to the rule. You don’t want to pay too much auto insurance on a vehicle that has no value. Although you want to ensure that you can cover the cost of another vehicle in an accident, you don’t want to pay more on your auto insurance than what your vehicle is worth.
Types of Coverage You Can Purchase
There are many different types of insurance that you can purchase for your vehicle. Again, the type that you will need depends on some of the factors mentioned before in this article; however, there are also other types of coverage that you might want to consider getting too and we’ll address those later in the article.
First of all, you have your liability insurance. Liability insurance covers bodily injury and property damage that occurs when you cause an accident and damage another vehicle (or property) and/or cause injury to someone else. This insurance is not meant to cover your damage or injuries. The exception to this rule is if you have an accident that involves someone’s property but no vehicle. In this case your liability coverage will cover the damages to your vehicle and any injuries to the people in your vehicle.
If you want to cover your vehicle in case of damage, then you need to get comprehensive and collision insurance. These types of insurance, which may required if you finance your vehicle, cover your vehicle in two different ways. Collision insurance covers your vehicle for damage if you, well, collide with another vehicle (or if another vehicle hits you). You should always purchase enough coverage to cover the Kelly blue book value on your vehicle, as this is what your insurance company will pay you in the event the vehicle is totaled.
Comprehensive coverage covers your vehicle if you hit something (other than another car), such as an animal, a tree etc. It also covers you if those other things hit you (such as a bird flying into the windshield or a tree falling over onto your vehicle). What’s more, comprehensive coverage covers your vehicle in case of fire, theft, flood, vandalism, hail, etc. Basically, anything not covered by your collision coverage is covered by your comprehensive coverage and vice versa.
Personal injury protection (PIP) is another form of insurance that you might want to consider. While PIP is not available in every state, it is required in states like Florida that are no fault states. This coverage not only covers doctors and hospital bills, but funeral costs in the event someone dies during the accident. This coverage can be invaluable, especially if you don’t have medical insurance.
There are several other types of coverage that you can purchase that not only can help you if there is an accident, but can help you if you have other issues. While these services are great, not every company will offer them, so that is something you want to be aware of. The great thing is they are very affordable, mostly one to two dollars a month, which is only pennies a day.
Additional coverage that you might want to consider (and again are very inexpensive) are things like roadside assistance, rental car coverage, locksmith coverage, windshield coverage, gap insurance and more. Roadside assistance covers the cost of a tow if your car breaks down or you have an accident. Rental car insurance provides you with a vehicle after an accident while your vehicle is being worked on. In addition, if your vehicle is totaled in an accident, most rental car coverage allows for a two week addition to allow you to purchase another vehicle. Locksmith coverage is great for those times when you lock your keys in the car. Gap insurance is for those who have financed a car and are upside down on the loan. Without gap insurance, if your vehicle is totaled, you will be responsible for the difference between the actual value of the vehicle and the amount that you owe.
How to Find the Best Auto Insurance Option at the Best Price
Getting the best price possible on your auto insurance is always important. The key to doing this is to use a free quote tool like the one found at the top of this page. Because you are under no obligation to purchase auto insurance once you use a quote tool, you are able to conveniently compare prices between insurance companies (of all coverage types) without fear of receiving a phone call or emails from the insurance companies. This means that you can take your time and consider your options. Why not give the free quote tool a try today?
