Car Insurance Quote Evaluation: Making Sense Of Auto Insurance

December 31, 2017 · Posted in General Articles on Car Insurance 

When attempting to make an auto insurance comparison not having sufficient knowledge of the industry can make it difficult. Auto insurance is broken into many parts and having a good general understanding of each of its elements is important to compare it accurately.

Let’s take a look at liability insurance

Each state within the United States of America has a different minimum amount of coverage, the only thing that remains the same in the majority of the states is the fact that you do need liability insurance by law. Naturally one must fully understand the limits of each policy and what they entail.

The most common way to represent these limits is in the following way: $30,000/$55,000/$30,000. The first number you see is the maximum that will be paid out for body injuries for each individual in an accident. The second refers to the absolute maximum that will be paid out for all body injuries in an accident. And the third refers to the max payout on property damage for an accident.

For instance if we were to go on the numbers in the example above, in the case of an accident that was your fault, your insurance company would only pay out an absolute maximum of the figures used in the example.

So if that person is found at fault and the necessary amounts exceed his or her coverage limits, they will likely be held responsible to pay the additional amount out of pocket.

Uninsured/Underinsured Motorist Coverage

There is a type of insurance available to help protect motorists from uninsured or underinsured drivers. This type of coverage varies depending on the state but can offer additional protection to the insured, generally for a nominal fee.

Collegian and comprehensive coverage

Comprehensive and collegian coverage, also known as full coverage, will insure an individuals vehicle regardless of whether the accident is their fault or not. It also normally ensures the vehicle against other damage not cause in a car accident.

As one would expect this kind of insurance is normally notably more expensive so when comparing one should look at this very closely.

This coverage will appear in a format similar to $500/$500. This means that in the event something happens to your vehicle that is covered by your comprehensive or collision insurance, you will have to pay $500 per incident out of pocket and the insurance company will cover the rest.

Optional towing coverage and rental reimbursement

One must take into account optional options such as towing coverage and or rental reimbursement when they compare quotes as they can make a fair amount of difference.

With rental car reimbursement you will get coverage up until a certain amount should you need to hire a rental car while your vehicle is in for repair after an accident.

Roadside assistance coverage allows the insured to receive a variety of emergency services (depending on the plan) for free or a reduced charge. A person having his or her car towed is one example of this type of coverage.

A look at medical coverage

Required and optional medical coverage varies greatly from state to state. Some states require insured to carry “no-fault” medical which covers them in the event of an accident, regardless of fault.

When in states in America where you are not required to have a no-fault medical coverage you will normally find that the state has at least set some minimum medical coverage amounts that you must have.

The bottom line is you must not do as so many do and just look for the cheapest price. You may end up paying more in a year sometimes for the insurance but overall it will end up being better in the long run when that unexpected accident comes up.


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