Breaking Down Your Auto Insurance Policy

Auto insurance is necessary to legally drive a car anywhere. Most insurance companies offer free online quotes to determine how much you can save when shopping for coverage plans.

Auto insurance is necessary to legally drive a car anywhere. Each person that wants to drive a car should have purchased an auto insurance policy somewhere along the way.  In the midst of shopping for policies, you will hear many numbers and terms that may sound like another language to the average person.  But in order to make sure you get the proper coverage and are paying the right price for what you need, you must understand how auto insurance works. Most insurance companies offer free online quotes to determine how much you can save when shopping for coverage plans.

Insurance Coverage For Accidents

It would make sense that if you were in an accident that is the fault of another driver that you wouldn’t have to pay for any repairs or medical bills that you incur after the accident.  In a perfect world, this would be true.  The reality is that many people drive illegally without insurance, making it doubly important for you to have adequate coverage for your own car and drivers.  If you are at fault in the accident, your auto insurance policy will cover the cost of the other driver’s medical bills as a part of your bodily insurance liability coverage.  When repairs for another car or some type of property are required, your property damage liability coverage will cover the cost.

You may choose to add uninsured motorist coverage to your auto insurance policy as a safeguard against those who don’t have insurance.  If you are involved in an accident with a driver without insurance, this coverage will help cover your medical bills and repair costs.

There are also situations where the driver at fault simply doesn’t have enough coverage to pay for your costs from the accident.  You can add coverage to your policy for underinsured motorists that will help to cover your costs if your bills and repairs exceed the amount of coverage the driver at fault has.

Collision Insurance Coverage

When you are involved in an accident, one of the first steps you must complete is to fix or replace your car.  Think of how much you paid for your car, and what it would cost you to buy a new one or repair your car after an accident.  Without insurance, all these costs become your responsibility.  With the right low cost auto insurance, your collision coverage will cover any repairs or replacements to your cars after an accident.

Comprehensive Insurance Coverage

What happens when your car is damaged in a way that is not related to an accident?  Remember that cars are stolen every day and damage from storms or floods is not covered by your collision coverage.  This is where your comprehensive insurance coverage comes in.  If your windshield were cracked by a flying rock, you would make a claim on your comprehensive coverage.  Anything that damages your car that is not the result of an accident is likely handled by your comprehensive coverage.

As you are shopping for an auto insurance policy, take the time to determine a healthy balance between price and coverage.  Each situation is unique and different and should be discussed with your insurance agent.  Deductible and coverage amounts are specific to the situation and are important factors to consider before purchasing a policy.

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