CAR INSURANCE COMPANIES
Nobody ever thinks it’s going to happen to them. But the simple fact is that a vehicle accident happens every 18 seconds in the United States. Even the most careful drivers can find themselves involved in one. Vehicle insurance is also known as Auto insurance or motor insurance. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions.
What does vehicle insurance cover?
- Bodily Injury Liability – This type of coverage pays for medical bills, lost wages or income, pain and suffering, and even funeral expenses for those injured in an accident where you were legally responsible for their injuries.
- Property Damage Liability – Property damage coverage not only covers the cost to fix the other person’s vehicle, but it also covers mending costs of anything you hit with your vehicle, such as a street lamp, fence or building.
- Collision – This type of vehicle insurance coverage pays for damage to your vehicle as the result of a collision with another vehicle. However, if your vehicle is financed, your bank or lending institution will require you to have this coverage.
- Comprehensive – This includes damages that are the result of theft, vandalism, fires, falling objects, earthquakes and storms, or contact with animals, such as deer. Comprehensive coverage is optional in all states.
- Uninsured and Underinsured Motorist Coverage – This policy protects you and other passengers in your vehicle if you are injured in an accident by a motorist who is uninsured and held legally responsible for your injuries.
How to Compare vehicle Insurance Rates Effectively?
- Get at least three quotes – Your first step should be to get at least three quotes from reputable vehicle insurance providers. Once you’ve done that, look at each one line by line to make sure you’re comparing apples to apples.
- Look at the limit of liability coverage – Liability insurance often pays for the vehicle mending and medical bills of another driver if you’re involved in an accident and found to be at fault. All states have minimum insurance requirements, but the minimum coverage might not be good enough in the event of a worst-case scenario.
- Look at the deductibles – Collision/comprehensive insurance pays for damages to your vehicle. Most policies typically will pay to replace a vehicle up to its actual cash value. But, what may differ between policies is the deductible, or the amount of money you must pay out of pocket in the event of a claim before the insurance policy kicks in and pays for damages.
- Find out if you’re eligible for discounts – If you’re a safe driver or a good student, or if your vehicle has certain safety features, you may be able to get an vehicle insurance discount. Make sure to find out about any discounts you may be able to receive, and take the discounts into account when comparing vehicle insurance rates.
