Better Understand Your Car Insurance

• What You Need to Know About Car Insurance

  No matter where you live in the United States, if you drive a car, you have to have insurance. There are two basic kinds of car insurance: comprehensive and liability-only. When you compare auto insurance quotes, you’ll immediately see the difference.

• Liability-only car insurance policies cover any damage your car might do to another person’s car and/or property, and pays medical expenses for you and anyone else injured in case of an accident. You’ll see lower car insurance quotes for this kind of coverage. Almost every state requires that you have some amount of liability coverage, and proof of coverage should be kept in your car so you can prove you’re covered.

• Comprehensive coverage gives you just that: complete coverage. It will pay for damage to other cars and property and medical expenses like a liability-only policy; additionally, it will pay for repairs to your own car, or replace your car if the damage is severe. Auto insurance quotes are higher for comprehensive coverage.

• Most states don’t require this more expensive insurance policy, but if you financed the car through a bank or other financial institution, the terms of the loan will probably require that you have comprehensive coverage. This protects the lender’s investment in your car. Once the loan is paid off, you no longer have to pay the higher premiums, and you can compare auto insurance quotes for liability-only.

• It hardly needs mentioning, it is such an obvious fact, but don’t underestimate the potential for financial disasters caused by auto accidents. If you are struck by an underinsured vehicle, you and your family may have medical expenses that increase at a shocking rate. Sometimes physical injuries from a car wreck are not apparent at first, but symptoms can crop up at anytime and linger for a lifetime, causing suffering and loss of income that completely changes a family’s future.

• If you are the cause of an accident and do not have the legally required insurance coverage, there can be severe legal consequences. You may face jail time if you’re involved in an accident and can’t prove coverage; other states will perform random traffic stops and ask everyone for proof of insurance coverage. Not having the right amount of insurance coverage for your car has serious consequences, but fortunately it is easy and fast to compare car insurance quotes online.

• When you look at car insurance quotes, keep in mind that a good car insurance company is not necessarily the one offering the cheapest policy. You should always be comfortable asking the company to explain benefits thoroughly, provide benefits promptly, and be available around the clock to help you if you are involved in an accident. Good insurance coverage gives you something priceless: peace of mind.