How to Buy Car Insurance Coverage

Car costs are high and are often overlooked. Most people don’t take the time to look around or look for ways to adjust their policy to get the best coverage for what they are willing to pay.

Here’s how to properly buy and get car insurance, get the coverage you need, and save money.

Most state laws require drivers to purchase two types of liability insurance in order to drive legally.

The first personal injury liability insurance pays up to your insured amount for injury or death for which you (the policyholder) or other drivers covered by your car insurance are held responsible following a motor vehicle accident.

Insurance terms vary, but typically personal liability insurance pays up to your insurance limits for:

  • Medical expenses
  • Funeral expenses
  • Loss of income
  • Pain and suffering
  • Legal defense if a legal dispute results from the car accident

In the meantime, Property Damage Liability (PD) pays up to your insurance limits for damage to someone else’s property for which you (the policyholder) or other drivers covered by your motor insurance policy are held responsible following a motor vehicle accident.

Property damage is usually damage to another car, but property damage liability also covers damage you have to a house, tree, fence, guardrail, pole, etc.

Property damage liability provides you with legal defense when another party is suing you for property damage caused by a car accident.

Property damage liability in no way covers damage to your own vehicle. For such coverage, you need collision protection and comprehensive coverage.

Together, these two popular types of auto insurance offer you protection if your vehicle is damaged.

However, the type of damage they cover varies widely. See the diagram below:


How much does the cover cost?

What you pay depends on the amount of your deductible.

Your excess is the amount you need to pay to have your car repaired or replaced before your insurance company pays the rest (with no limit).

Collision and fully comprehensive insurance both have deductibles. A deductible is a separate amount from your insurance plan and this amount depends on what you drive and how far you typically drive each year.

The good news is that you choose your deductible.

The lower you choose the deductible, the higher your insurance premium. That’s because you pay a smaller amount to have your vehicle repaired or replaced, while your insurer pays more of the remaining costs.

For example, a low deductible can be as low as $ 100.

Instead, you can choose a higher deductible – say, $ 1,000 – and pay a lower monthly insurance rate.

But remember, if you ever need to get your collision or fully comprehensive insurance, you’ll have to pay that higher deductible of $ 1,000 before your insurance covers the rest.

Paying $ 1,000 after an accident can make you feel even more excited and frustrated.

What surprised me was that the difference in deductibles wasn’t that big, higher or lower, between $ 250-500-750. Nonetheless, alongside personal injury and property damage, the collision is one of the most expensive parts of the insurance premium.

Rising courses

It should be noted that there are places in the US where auto insurance rates have decreased or stayed about the same, but the average annual premium across the country has increased 23 percent over the past decade.

Several forces are responsible for the rise in car insurance prices, such as an increase in storms that damage cars and cause accidents in some regions.

Vehicle thefts are increasing every year. High-tech vehicle functions have increased vehicle safety, but also increased repair costs.

Distracted driving (like texting, eating fast food and putting on makeup) is commonplace and contributes to many other accidents. After all, one in eight drivers forego auto insurance, a statistic that has been fairly constant for more than two decades.

When choosing insurance, carriers want to know what the primary use is, personal, business or agricultural.

You want to know whether you are using the vehicle for carpooling and in which main location the vehicle is stored. Depending on the zip code, this plays a big role in determining your tariff.

You will also ask who the registered owners are and who all the drivers are and how many tickets or accidents have there been over the years? Have you completed a safe or defensive driving course?

If minors drive your vehicle make sure your great students share this testimony. If your kids do well in school, share the testimonial and get the extra discount!

Discounts are available if you have multiple product lines, e.g. B. Extra Cars, Homeowners, or Rental Insurance and Umbrella Insurance. However, just because you have been a safe driver for many years and with an insurance company doesn’t mean you will get the best rates.

In addition, some companies have devices that can help you lower your tariffs. Note, however, that they are now monitoring the time of day you drive, where you drive, how fast you drive, how hard you stop, and more.

I would recommend everyone to look for adequate gap protection, whether you are buying or leasing a car. Many insurance companies don’t offer this feature, but some do and it’s very inexpensive. For just a few dollars a month, if there was an accident and the car was totaled, you owe no money to the lender.

Finally, don’t be afraid to look around and compare prices to make sure you are getting the best deal possible.