It also covers legal expenses if you are sued because of an accident. If you cause a car accident that results in property damage or injuries to others, liability car insurance pays for repair bills and medical expenses. Here are the main types of car insurance. But if you buy too much, you’re overpaying for coverage you don’t need. If you don’t have enough coverage, you could be underinsured. If you already have insurance and plan to switch car insurance companies, now is a good time to figure out if your current coverage amounts still meet your needs. Related: How to buy car insurance (5 easy steps) Decide How Much Coverage You Needīefore you purchase a policy, you’ll need to determine how much car insurance you need. Your current insurance company (if you have one) and coverage limits.Garaging address (usually your home address).Vehicle information for all vehicles on the policy, including year, make, model and vehicle identification number (VIN).Driving history for all drivers on the policy, including traffic violations, at-fault accidents and any completed safe-driving courses.Date of birth for all drivers on the policy.Driver’s license numbers for all drivers on the policy.Gap insurance coverage: If your brand-new car is totaled in a covered accident, gap insurance may help pay off an underwater auto loan.The first step in buying cheap car insurance is to have the necessary information on hand:.Jump starts, fixing a flat tire or towing may be covered. Towing and labor cost coverage: May help cover certain services if your car breaks down.Rental reimbursement coverage: Helps pay for a rental car while your car is being repaired after a covered accident.If you're leasing or financing your car, your lender may require collision coverage. Collision coverage: This coverage helps pay for repairs if your car is damaged or totaled in a collision with another vehicle or object (such as a fence).If you're leasing or paying off a loan on your car, your lender may require you to have comprehensive coverage. Coverage may include theft, vandalism or animal damage. Comprehensive coverage: Helps pay to repair damage to your car that wasn't caused by a collision.Personal injury protection (not available in all states): Coverage may help with hospital bills, lost income and child-care services if you're injured in a car accident.Medical payments coverage: Helps pay for medical expenses if you or your passengers are injured in a car accident.Uninsured and underinsured motorist coverage: May help cover your expenses if you're hit by a driver without insurance, or without enough insurance.Required car insurance coverages in some states: Liability coverage: Helps pay for another person's property damage or medical bills if you cause an accident.The following list shows standard and optional requirements for most car insurance policies. Then, make sure you've selected the same set of required and optional coverages for each quote to help you accurately compare car insurance rates. You may want to familiarize yourself with your state's specific car insurance requirements before you begin asking for quotes. While liability coverage is required in most states, other coverage requirements vary from state to state. These tips may help you better understand what each policy provides so you can choose the one that's best for you! To make an accurate comparison of car insurance rates, the deductibles you choose should be the same for each quote you get. Increasing your deductible may lower your car insurance premiums, but you'll typically pay more out of pocket in the event of a claim. Either way, make sure the limits you set for bodily injury liability coverage and property damage liability coverage are the same for every quote you compare.Ī deductible is the amount you'll pay out of pocket toward a covered claim. You may also have the option to increase your liability limits. Most states have minimum liability coverage limits that drivers must purchase. Make sure you select the same set of required and optional coverages for each quote you get.Ī limit is the maximum amount a policy will pay for a covered loss. And, if you're financing a vehicle, you may need comprehensive and collision coverage. For example, uninsured motorist coverage is mandatory in some states. Not sure where to begin with your car insurance quote comparison?Īs you get several quotes, you'll want to make sure each quote has the same set of coverages, limits and deductibles.Īuto liability coverage, which may help pay for car repair and medical bills of another person if you cause an accident, is required in most states.Īdditional coverage may be required, depending on your situation and your state's laws.
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