Car insurance can be a great way to help protect your assets, but it can also be very confusing. What exactly does car insurance protect? Car insurance is basically a contract between the insurance provider and you. This contract details the monetary risk that you’ll incur from paying for auto coverage, the number of dollars that you’re eligible for in compensation if you get into an accident, and the maximum coverage that you’ll be required to have. To protect yourself against possible accidents without paying out more, explore the different factors that you should take into consideration when putting together the perfect policy for your car, and how to choose the right type of coverage.
It’s important to understand that even if the insurance provider is offering you the lowest price possible for a policy, that doesn’t necessarily mean that they’re going to offer you the most protection. For example, it’s perfectly fine for them to offer you one hundred thousand dollar liability insurance for a new car, but it’s a lot less than ten thousand for a used vehicle. You also don’t want to make the mistake of thinking that because you’re getting the cheapest auto insurance coverage available, that you’re getting everything that you need.
There are several basic things that you will want to take into consideration when shopping around for car insurance. These will include:
Car Insurance Policy: The policy that you’re looking at should provide you with coverage that you need and that fits your budget. You don’t want to sign up for a policy that provides you with only the bare minimum level of protection, only to discover that after your vehicle is stolen, or if you have an accident that requires repairs to it, you won’t be able to afford those costs. Also, it’s important that you look for car insurance that provides enough coverage to adequately cover the cost of medical expenses and repair costs if you’re in an accident. You should also ensure that the policy covers the costs of your personal injury, property damage, and liability, so that you’re protected from claims that could end up costing you a lot more than the actual insurance price.
Car Insurance Rating: Before you choose a particular provider of car insurance, ask about their rating. Find out how well a provider has performed against the Better Business Bureau, consumer reports, and other consumer reports. A good rating will show that they’re a reliable company, while a poor rating will show that there’s some evidence that they might not be able to pay out as much money as they claim if a claim happens.
Collision Insurance: If you are driving a new vehicle, it’s especially important that you find out if your coverage will cover you in the event of a collision. Most policies will cover collision damage to your car and bodily injury, but most don’t pay out as much as they say. If you own an older vehicle, collision insurance may be a good idea. If you do have an accident, this coverage will provide the money you need to fix your car, as well as cover the medical expenses of those who are hurt in the crash.
Motorcycle Insurance: Motorcycle insurance is almost always a requirement when you own a motorcycle. Since there are a lot of bikes on the road, the insurance providers tend to charge a higher rate to drivers who own motorcycles, since they’ll be involved in a lot of crashes. Make sure that you find out the different types of coverage that are available in terms of injury and property damage coverage and how they’ll cover you in case you get in an accident.
Bicycle Insurance: This is a little more complicated than motorcycle insurance. Bicycle insurance companies usually insure both motorbikes and bicycles, but not all of them will do this.