Comparing the Different Types of Auto Insurance

By Compuquotes Team on March 27th, 2008
Auto Insurance

The auto insurance industry is highly competitive and involves endless amounts of different policies from different companies. It may be hard to know which company and policy is right for you without over paying or being under insured. We all know how expensive auto insurance is but compare that to the high costs of car repair and medical bills and auto insurance costs are considered minimal. Not only is auto insurance the law but it will save you financially if you are involved in a vehicle related incident whether you are at fault or not.

Liability insurance is one of the most important and expensive coverage included in your auto insurance policy. Liability is also referred to as property damage insurance and is designed to protect you from paying out of pocket for damage you cause to someone else's vehicle. Every state required you to have a minimum amount of this type of coverage, and it is generally very low. You should purchase as much liability as you can afford.

Personal injury insurance is also generally required by law, with a minimum amount for each state. Personal injury insurance is designed to cover your medical bills, around eighty percent, and a portion of the lost wages you suffered, around sixty percent, if you are injured in a car related accident. This type of protection will cover your family members or anyone who was in your vehicle, depending on your policy and insurance company.

The bodily injury insurance that you can include in your auto insurance policy is usually not required by the law but is very helpful in the event of an accident that you are held liable for. If you are found liable for an accident that results in injury exceeding the limits of their own personal injury coverage, then you bodily injury insurance will pay the difference rather that you being sued for medical expenses.

It is generally inexpensive to add on uninsured motorist protection but it is defiantly worth it. If you were to be injured and the costs exceed the limit of your personal injury protection, and the accident was caused by someone without insurance then you would be left paying the difference in the medical bills, or chasing the other driver around with a lawsuit which is also going to cost you out of pocket.

To save the added hassle in an already stressful time you can invest in uninsured or underinsured motorist protection and this will cover the additional costs. Always purchase this policy if you have the extra cash, if you ever need it you will be so glad that you did.

Collision insurance reimburses you for damages that are caused to your vehicle if you are at fault and will pay the actual cash value of the vehicle, minus the deductible. If you have a vehicle that you are still paying off this is usually required by your financial provider. Comprehensive insurance will cover the damage or loss of your vehicle due to theft and acts of god.

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