AUTO INSURANCE ARTICLE
Cheap Auto Insurance —Getting the Right Amount of Coverage
By: cradel_book
Getting the right auto insurance is depends on which state you live in. Most auto insurance agent will tell you that you must purchase coverage as much as you can afford to do so. However, you should realize that these agents get the amount of percentage for every policy that they sell. Therefore, you should do your own research and comparison to find the right and affordable auto insurance that is suitable for you.
There are some factors you need to know in order to make an educated decision when buying auto insurance:
First, you must know the minimum auto insurance for your state. You can get your up to date state minimum auto insurance at Insurance Information Institute or III website. The required state minimum auto insurance includes bodily injury liability coverage for each person involve in an accident up to its maximum limit and property damage liability.
After knowing the state minimum requirements, you have to know the types of auto insurance coverage you have to purchase. Here are the coverage definitions that may help you in choosing the right auto insurance policy for your vehicle.
Bodily Injury Liability – This type of coverage will pays for other person’s physical injuries or even death which you are responsible. It also provides legal assistance if the other party files a lawsuit against you. Auto insurance claims for this type of coverage may include medical expenses, pain and suffering or loss of income. Remember that bodily injury liability pays for physical injuries to people not to the car. Thus, it is a good idea to have additional policy that will protect your vehicle when severe accident occurs.
Property Damage Liability – pays for the damages of other party’s property. Most of the time, it is the other party’s vehicle but it could be a house, fence or other property damaged by the accident.
Collision coverage pays the damages to your vehicle when you hit by another vehicle or when your vehicle hits another. It will pay for the vehicle repair less the chosen deductible. Same with comprehensive coverage, select a much higher deductible to keep the premium low. If your car is quite old, consider dropping this coverage because this type of auto insurance depends on the vehicle’s cash value.
Comprehensive coverage – This type of coverage will protect your vehicle or other vehicles you maybe driving for any damages except collision. It will cover the damages to your vehicle when stolen, damaged by fire, flood or any unknown party. It will pay to fix your vehicle less the chosen deductible. To make your premium low, choose a much higher deductible when signing a policy.
Medical coverage will cover all the medical expenses to you and your passengers involved in an accident. Even if you are a pedestrian hit by a car, you are absolutely covered and it doesn’t matter who is at fault in the incident.
Personal Injury Protection or PIP – This type of auto insurance is required by some states with limits are vary from state to state. It will pays for medical expenses or funeral expenses of the policy holder regardless of who is at fault in an accident.