Types of Coverage

The main reasons to purchase auto insurance are to protect yourself and the investment you have made in your vehicle. Depending on the type of insurance you purchase, your insurance company may pay for repairs to your car, repairs to another person’s car or multiple other cars. Auto insurance can also cover the medical expenses for you or anyone else involved in an accident. When you purchase auto insurance it is important to remember that if you are determined to be at fault for an accident you could be held responsible for covering damages to other people’s vehicles and medical expenses.

Comprehensive auto insurance provides the most coverage. This type of insurance will cover almost any type of expense that could be involved in an automobile accident including theft, medical expenses and vehicle repairs. Because comprehensive insurance covers so much it is the most expensive auto insurance option.

There are some insurance companies that will allow you to “mix and match” aspects of different policies to create a customized auto insurance plan. Other companies require individuals to choose from pre-determined options.

The types of coverage you will need to consider purchasing include:

• Personal injury: As the name implies, personal injury insurance covers any medical  expenses you incur if you are involved in an accident.
• Collision: This type of coverage pays for physical damage to your vehicle.
• Bodily injury and liability: Bodily injury and liability insurance will cover the medical expenses of anyone else involved in the car accident if you are found to be at fault. Most states require all drivers to carry this type of insurance.
• Uninsured or underinsured motorist: Uninsured or underinsured coverage will pay for collision-related expenses if the other driver is found to be at fault and that driver does not have adequate insurance coverage to pay for the victim’s expenses.

What to consider before purchasing auto insurance:

It is wise to consider what your needs are before you begin to speak with different insurance companies to shop for an auto insurance policy. Factors you need to consider include:

• How often you drive your vehicle
• What amount you can afford to spend on auto insurance
• How much you will be able to pay for out of pocket if you are involved in an accident
• How much you owe on the car

Your budget should be your starting point when you consider what type of auto insurance to purchase. Remember at the very least you should have liability insurance as required by law. When you speak with representatives from insurance companies be sure to ask what types of discounts you might qualify for so that you can get the most coverage for your money. Once you find a policy that is right for you, remember that you should continue to re-evaluate your auto insurance on a regular basis.

Determining your insurance needs

The worst time to learn that you have the wrong type of insurance is after something happens and you need to file a claim. Consider what your budget is and how much cash you have at hand that you would be willing and able to spend if something happens. High deductible plans can be attractive, but if you select one be sure you can afford to pay the deductible in the event of an emergency.

Discounts and Special Offers

The most important factor in determining your car insurance rate is your driving record. Regardless of the provider, those with clean driving records will qualify for lower rates than those who have been in a car accident or two. Even those with less than perfect driving records can still qualify for good rates however if you know what types of discounts to ask for. For example, auto insurance providers are often willing to give drivers a discount if they insurance multiple vehicles with the same provider or if they take out a home insurance policy in additional to their automobile insurance policy.

Get Personal

Be prepared to provide the insurance agent personal information that may help you qualify for lower rates. For example, some insurance companies offer discounts to individuals who are married, went to college, have good credit, etc. Think about what personal attributes like this you possess and be willing to share this information with the insurance agent to see if you can get a lower rate. Some other attributes that might help drivers qualify for discounts include:

• Job: Some insurance providers have deals with businesses that enable them to offer employees of those businesses a special rate. Other providers might offer discounts to all members of a certain professional regardless of what organization they work for.
• Age: Drivers who are 55 or older may qualify for special discounts.
• Security System: If your car has an alarm or a security system, you may qualify for a discount.
• College: If you graduated from a certain college your insurance agency may be willing to offer you a special discount.

When shopping for car insurance it is also wise to try to speak with individuals who currently have insurance with providers you are interested in. You can also search for business reviews online to hear what others have to say about the insurance provider.

Auto Liability Insurance: The Basics

The main purpose of auto liability insurance is to cover damages other drivers received in a car accident. Auto liability insurance will cover damage to another person’s vehicle and medical   expenses if the other person is injured. Each state can set its own standards for which types of auto insurance drivers must carry. Auto liability insurance is a requirement in some states, but not others. It is extremely important to carry auto liability insurance because the amount of damages other drivers can receive could be astronomical.

Driving Safely

Carrying auto liability insurance is the first step drivers should take to insure their financial safety, but there are also other things you could do to keep yourself and others on the road safe.

Avoiding Distractions

Arguably the most common reason people get into car accidents is because one or more of the drivers involved in the accident was distracted. The main sources of distraction include cell phone use (including talking on the phone, texting and checking email), other passengers, applying makeup or eating. It is important to unsure that when you are driving you are able to give your full attention to the road.

Alcohol Limit

Driving after consuming alcohol puts yourself and everyone else around you in danger. Each state can set different limits for what is considered above the legal alcohol limit to drive. Your blood alcohol percentage can vary depending on your weight, diet and other factors. To ensure you are below the legal limit it is best to avoid consuming any alcohol when you plan to drive.

Other Driving Safety Factors

In addition to the tips above, it is also important to make sure you and everyone else in your vehicle wears a seat belt whenever you are driving. You should also be sure to have your vehicle serviced regularly and pay close attention to the condition of your tires to avoid potential accidents.