FAQ

How to choose the best car insurance coverage

Even if you already own multiple vehicles, shopping for auto insurance requires some research and skill. it’s important to learn how to choose auto insurance that works for you. Narrowing down your options and finding the right insurance company can help you greatly reduce your overall insurance costs. Once you understand what makes premiums go up and down, you’ll be able to compare policies and find out how to save money.

Understanding types of insurance coverage

Become familiar with the types of insurance coverage available and what each does. focus on several basic types of coverage that you should focus on:

Reading: How to choose the best car insurance coverage

  • collision
  • wholemeal
  • medical or personal injury protection
  • responsibility
  • uninsured or underinsured driver
  • collision and comprehensive

    Collision coverage covers damage to your own vehicle in the event of an accident. Collision is first-party coverage that will pay for repairs to your vehicle, not the other driver’s vehicle. In situations where repair costs or damage exceed the value of your vehicle, your insurance company may declare the vehicle a total loss. Instead of making the repairs, the adjuster will write you a check for the value of the vehicle. This coverage is essential when you own a new or relatively new vehicle.

    comprehensive is also a first party coverage that covers other non-accident related damages. For example, if your vehicle is stolen or damaged by inclement weather, you may be able to file a claim under your comprehensive coverage.

    medpay and pip

    medical payments coverage, also called medpay, covers some reasonable medical expenses for you and any other passengers, regardless of fault. medpay applies whether or not you have your own health insurance that pays your medical expenses. Personal Injury Protection, or PIP, is similar to MedPay. pip differs in that you can have higher policy limits and more comprehensive coverage. however, that means you also have higher premiums and there is a deductible you must meet.

    See also: How long should i keep medical insurance records

    Personal Injury Protection coverage is not available in all states; only those who have no-fault laws. If you reside in a no-fault state where PIP is available, you should take full advantage of the coverage. pip can pay for more than just medical expenses, like a portion of your lost wages, funeral costs, and more.

    liability coverage and um

    In states without no-fault laws, you will need to purchase mandatory liability coverage. This insurance protects you when you cause an accident and injure another person or damage their property. Bodily injury liability insurance covers the other party’s medical expenses, lost wages, rehabilitation expenses, pain and suffering costs, and more. Liability coverage may extend to passengers in your vehicle, those in other vehicles, and any injured pedestrians. the minimum required policy limits will also vary by state. Property damage liability covers any damage to other vehicles and property, such as a fence, stop sign, etc. property damage will not apply to damage to your own vehicle; That’s what collision coverage is for.

    Uninsured (UM) and Underinsured (UIM) motorist coverages are usually sold in a package. UM coverage could help pay for a portion of your damages when you are injured by an uninsured motorist. UIM coverage will apply when the other party’s liability limits are not high enough to cover all of your damages.

    other types of insurance coverage available

    The coverages listed above are the top products most people consider when shopping for auto insurance. Depending on your needs and situation, there are several other types of coverage you may want to consider.

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