Auto Coverage: Finding the Right One for You Shopping for the right auto coverage usually falls into two types - a swift, Internet-ready search, apply and confirm process, or a lengthy, detail-burdened maze of varying prices and unanswered questions. | Hopefully, when you're shopping for auto insurance, you won't have the latter experience. It's important to find the right auto coverage for your needs. You need to at least know your state's minimum liability coverage, and work forward from there. There are good reasons to avoid thecheapest insurance coverage, foremost that when you need insurance most, it isn't there and you're faced with out-of-pocket expenses. Insurance depends a lot on factors like your car's make, model, year and operating efficiency. If you're thinking of purchasing an older gas-guzzling classic car, you may have to seek out different insurance options than someone who's seeking one of the newer, more fuel-efficient hybrid auto models. After all, we know that fuel prices are rising, and car insurance companies will certainly note that in your car's overall rating. | Here are some top tips below to help you insure that you're getting the right kind of auto coverage at the right price. Keep this checklist handy for the next time you're onlinecomparing insurance quotes. Liability Coverage: Liability insurance pays for injuries to individuals and damage to property that you cause in an accident. This insurance covers the costs incurred by the other party in the accident, not yours. That's why it's calledliability coverage, because it protects you from being held financially liable. The minimum required liability limits in most states are often quite low, so you may want to purchase additional coverage. Uninsured/Underinsured Motorist Coverage: This coverage comes into play if the other driver in an accident either did not have any liability insurance or did not have enough to cover the damages done to you, other people in your vehicle, or your personal property. You often need to purchase uninsured and underinsured motorist coverage at the same limits as your own liability coverage. Make sure you have enough insurance coverage to pay to replace your vehicle if it is totaled. Medical Payments or Personal Injury Protection Coverage: Some states require drivers to purchase personal injury protection coverage, sometimes abbreviated PIP. This coverage pays not only for medical care for injuries incurred in an accident, but also for lost wages and other related costs. If you have a good health insurance plan, you probably don't need medical payments coverage. Comprehensive and Collision Coverage: This coverage pays for damages to your vehicle. Collision covers any accident in which your vehicle collides with a moving or stationary object. Comprehensive covers other types of damage, like falling branches, hail, vandalism, theft, and fire. If you lease your vehicle or have a loan on it, your lender or leasing company will probably require you to carry comprehensive and collision coverage. Generally, you shouldbuy coverage if you aren't financially able to pay to repair or replace your vehicle after an accident. Add-On Coverage: Many auto insurance companies offer specialized coverage to add onto your plan, like rental reimbursement coverage if you need to use a rental vehicle while yours is being repaired. Others offer an add-on called sound system coverage to help replace a stolen or damaged sound system, and also towing and labor costs coverage so you can get reimbursed in basic roadside assistance situations. The right coverage for you depends on the value of your vehicle, how much money you have available for repairs, and what assets you need to protect. An insurance agent can help you choose the policy that's right for your situation and budget. |