There's so much buzz one can here about shoping with auto insurance quotes for economy sake. This is really a good thing, but if you are feeling frustrated because you are having this problem, this article may help to shed some light on the subject. Understanding what to compare in insurance quotes helps you choose the right policy.
The first rule is 'Apples to Apples'. Understanding the policy's language will help you know if you are comparing the same things. Start with Liability insurance. Simply put liability is your financial obligation to cover damages to persons or property in the event of an accident. Very few people put aside money to cover the costs of what if's, and even fewer have the resources to cover the total costs of an accident. The government requires you buy insurance. (Otherwise they would be footing the bill for medical and many property damages created by auto accidents).
While most people find it easy to compare the premium price, it is often very difficult to compare the actual coverage. The coverage usually consists of different components, which you can include in your policy according to your needs. Browsing the auto insurance quotes which appeal to you - fisrt pay attention to the liability limits.
Liability coverage has two components: personal injury and property damage. When you read the numbers like:
- Bodily injury Liability : $50,000/ $100,000
- Property Damage Liability: $25,000
This means the limit and individual will be paid for bodily injury or death in a single accident is $50,000 and the maximum to be paid out for an accident is $100,000. Furthermore, the maximum amount to pay out for property damage is $25,000. This is probably the lowest limit your state will allow. Be advised that if you at fault and the property damages or the bodily injury damages are higher than the amount of coverage you bought, your personal assets will be used to cover the costs.
Next examine the comprehensive verses collision. These two types of coverage are optional. Collision is limited to collisions, your car hitting and object or another car and you are responsible. Collision pays for repair and possibly towing, minus your deductible up to the true value of the car. (The true value is the depreciated or market value not what you owe on any loans or what it is worth to you.) It does not pay for damages that occur as the result of someone else. The comprehensive component in your auto insurance plan covers extras like acts of God including hailstorm, flooding, falling objects as well as riot, collisions with animals, fire, theft, and vandalism.
Comparing quotes find what is the most appropriate for keeping your assets and your vehicle safe.