When the basic auto insurance packages are being discussed, you know that you must find the right policy for you and not just the one that is the cheapest. The reason why the law mandates drivers to have car insurance is that it serves as protection for the driver and the passenger against the financial consequences of being involved in an accident.
You must be familiar that the automotive insurance requirements for citizens vary depending on the state that they live in since states have varying minimum requirements. A lot of the basic auto insurance policies have at least 5 kinds of coverage no matter where you live. These 5 basic coverage kinds will be discussed here.
The first kind of automotive insurance coverage is the collision and comprehensive. In the collision package, the coverage pertains to losses incurred by your car if it gets into a collision. The comprehensive coverage takes care of the physical damage not related to collisions. For instance, it can be through weather causes.
The second kind is liability insurance. There are 3 numbers to remember – 20/40/10. The number 20 means that the maximum that the person can get if he or she was involved in an accident and was killed or hurt is $20,000. The second number, 40, is the total that he will get for all persons that is hurt in the accident. The last number, 10, means that if you crash your car into somebody’s property, the maximum they can get under the liability coverage is $10,000.
Thirdly, there is an automotive insurance coverage for uninsured or underinsured motorists. This is what you will look to if the driver you got into an accident with is negligent and he does not have enough insurance or no insurance at all. The policy will be the one to take care of the bodily injuries as well as some damages to property if the state allows it.
The fourth kind of automotive insurance coverage is for medical payments, also known as no-fault or Personal Injury Protection. This is coverage for the owner of the policy and any other person that is inside the vehicle of the policy holder.
Property damage coverage takes care of damage to property incurred by third persons to the accident or to the property of the person you hit if the accident was your fault.
If you think that you can easily add more types of coverage on your automotive insurance policy, try to include towing and labor as well. This will translate to more costs for you but they might be worth it in some instances.
If you wish to spend less on your auto insurance policy, there are many ways that you can do so. First, remember to go comparison shopping by requesting for as many quotes as you can from the companies directly or from an agent. You may also go online and look for sites that will give you a listing of quotes for your situation.
It also helps if you have a good driving history and a high credit rating. When you do comparison shopping of insurance companies, make sure that you check on their reputation and their performance. The Internet lets you do this easily since you can do it even if you are at home. Just go to the websites of the insurance companies. Be careful though as not everything that is on the Internet is true.