Before Buying Auto Insurance
Compare Auto Collision and Auto Liability Insurance Coverages
Jan 12, 2007
Collision insurance coverage pays for damage to your car if the policyholder is in an auto accident. Collision with another car, an object or a car rollover is covered by collision insurance.
Comprehensive auto insurance coverage pays for damages other than collision to a covered car, including natural disasters, theft, vandalism or fire (see individual policy for details).
Auto liability insurance coverage pays out if the policyholder accidentally harms someone else or their auto or property as the result of an auto accident. Individual drivers are required to carry at least the car insurance minimums in their state of residence. Auto liability insurance breaks down into two categories:
- Bodily injury liability provides auto liability insurance coverage if the primary policyholder or another covered policyholder injures someone else during a car accident. Bodily injury covers medical expenses, loss of wages and other expenses related to the accident.
- Property damage liability provides auto liability insurance coverage if the primary policyholder or another covered policyholder damage someone’s car or property as the result of a car accident.
Medical payments or Personal Injury Protection (PIP) insurance cover the driver and passengers in case of injuries related to a covered auto accident. PIP insurance, where available, may also pay for expenses resulting from a covered auto accident, including rehabilitation, loss of wages, replacement of services lost or funeral expenses.
Uninsured or Underinsured Motorist coverage affords policyholders insurance protection if they are involved in an auto accident with an uninsured or underinsured party. First compare prices and service, then buy auto insurance coverage to safeguard against an accident with a hit and run driver too.
Deductibles vary but generally, the higher the deductible, the lower the auto insurance premium. Take into account the ability to pay out the deductible in case of a car accident. Then, weigh that against the likelihood of being in a car accident. Check out the insurance blog for the latest auto liability insurance headlines. Finally, talk to an insurance agent about the right auto insurance deductibles for personal or business needs.
Every state has different car insurance minimums, which will arise when comparing and buying auto insurance coverage. Check with a licensed insurance agent to compare prices before buying auto insurance. Discuss how much liability and collision insurance needs to be purchased to meet individual or business needs. The car insurance minimums by state are meant to be a guideline; prospective customers may need more auto liability insurance coverage in order to protect their assets.
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