Choosing The Right Car Insurance

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When it comes to car insurance it feels like there are a thousand different options to choose from.  Becoming educated on the options available will ensure that you pick the right coverage for you.

Auto Liability Insurance

This kind of insurance protects the person you hit when the accident is your fault.  The dollar amount is separated into three numbers: the amount of money to cover one person for bodily injury, the amount of money to cover every person for bodily injury and property damages.

Some areas have a legal minimum amount of auto liability insurance a driver must carry.  In addition, you want to remember that someone who is injured may come after you with a lawyer for the remaining amount of money not covered by insurance.  If you own a lot of assets you may want to make sure that your auto liability insurance is higher.

Personal Injury Protection

This helps protect you and any family members who are injured in an accident.  Some areas require a minimum amount to be carried by a driver.  But many people who have health insurance opt out of this policy.

Comprehensive and Collission Coverage

Comprehensive coverage will cover any damages not related to an accident.  This could include fires, floods, or hail.  Collision coverage covers your car for damage caused by an accident.  If you are leasing a car you will be required to hold both comprehensive and collision coverage.  If you drive an older car you may not carry this type of coverage because it would cost you more than the value of your car.

Medical Payments Coverage

This policy would start once the money ran out from personal injury protection coverage.  In some areas personal injury protection coverage will only cover a certain percentage of medical expenses (say 80%).  This means you would be responsible for the other 20% unless you had medical payments coverage.

Uninsured and Underinsured

This policy is usually inexpensive to add on and will protect you in the event that you are in an accident with someone who doesn't have insurance or doesn't have enough insurance to cover the cost of fixing your vehicle.

Towing Insurance

You can also add towing coverage to your policy.  However, many automakers provide towing when a car is under warranty.

Since there are so many options when it comes to auto insurance it is best to make sure you understand all of the aspect and get what is best for your needs.


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