Easy Ways to Compare Different Insurance Policies ?

Answer 1

In nearly every state in the U.S., drivers are required by law to carry auto insurance, which makes comparing different insurance policies a smart move. Even if your state does not legally require that you maintain auto insurance on your vehicle, carrying at least a minimum amount of coverage is important. After all, if you are involved in an accident, you do not want to get "stuck" paying for the damages that you cause, or that the other driver causes.

Comparing Insurance Coverage

There are six general types of coverage that you should consider when comparing auto insurance policies. Not all drivers need or want each of these types of coverage. When selecting the limits for these coverage types, you will need to determine how much, if any, liability you wish to assume if you are involved in an accident. You will also want to decide if you want to pay a deductible (out of pocket) for repairs or medical expenses that result from any accident that you are involved in. The limits that you select when choosing your policy and the size of the deductible that you choose will affect the cost of your policy. Choose from:

• Bodily injury. Bodily injury coverage covers the personal injury and property damage caused by you during an accident. For example, passengers in your vehicle are injured while you are driving. This coverage covers their medical expenses.
• Collision. Collision coverage, as the name implies, covers the cost of repairing your vehicle if you are involved in a collision, and in some instances, will repair the other driver's vehicle if you caused the accident.
• Comprehensive. Comprehensive coverage will pay for repairs when your vehicle is damaged and the damage is not your fault. This protection will pay for damages from vandalism, fire, theft, and natural disasters.
• Personal injury protection. This type of coverage is also referred to as PIP. This coverage is recommended in no-fault states. In no-fault states, your PIP coverage would pay your medical expenses and the other driver's policy will cover his expenses, regardless of who is At Fault.
• Personal property liability. Personal property liability coverage takes care of personal property that is damaged as a result of an accident. For example, you crash your car into a fence and this type of coverage pays the owner of the fence for the damage.
• Uninsured or underinsured motorist. This type of coverage protects you when your car is involved in an accident with an uninsured or underinsured motorist.

When choosing the policy that is right for you, you will need to choose which of these coverage types you need, based on your driving habits, the age and value of the vehicle that you are insuring, and your personal tolerance for risk. Some drivers opt to carry only the legal minimum amount of required insurance on their vehicles, especially if the vehicle is old or worth very little. If your vehicle is financed or leased, you may need to carry more insurance on it than if you own the vehicle outright. By comparing different policies, you will be able to determine the type, level and amount of coverage that you need.