Selecting the Right Auto Insurance Policy

Every day we’re bombarded with ads for cheap auto car insurance. Some promise to save you 15% by switching, others use catchy characters to convince us that their company has us covered. Finding the right auto insurance company can be a tricky proposition. The key is to choose one that provides the right blend of coverage and protection at an affordable price.  Compare quotes online for free by entering ZIP code into our FREE quote generator on our website!!

Many Americans do not have adequate insurance, leaving them with hefty bills in the case of an auto accident. In some cases, policy owners buy only the minimum required insurance, leaving them to pay out of pocket for damage from uninsured drivers, natural disasters and traffic accidents.

It is not only important to have affordable auto insurance, but to have enough coverage to protect you in a disaster.

Deciding on Coverage Amounts

The amount of auto insurance coverage you will be required to carry varies from state to state, so it is important to know your state’s requirements before you decide on a policy. Most auto insurers will encourage you to err on the side of caution when choosing a policy and carry the maximum amount of insurance coverage for your vehicle. Insurance companies use risk and actuarial tables to calculate the likelihood that you will be involved in an accident or have your car stolen. Based on this, they will recommend the right amount of coverage for your car.

Types of Coverage

• Liability

Created to protect your assets in the case of a lawsuit, liability insurance is a necessity when choosing auto insurance. As a general rule of thumb, the more assets you have, the higher amount of liability insurance you should carry. If you are underinsured and cause damage to another vehicle or person, your assets, including your home, business and savings could be seized in a lawsuit.

The standard amount of liability insurance is $50,000 per person in an accident, $100,000 for all parties involved and $25,000 for property damage. If you don’t have a large amount of assets, you can get away with less liability coverage.

• Collision

Collision insurance will cover you in the event of a collision between your vehicle and another. It will also cover you if you hit an inanimate object, such as a tree, building or parked car. The amount of coverage you will need will depend on your driving record, your usage of the car and your lifestyle. A person living in a high traffic area will probably require more collision coverage than one in a rural area where a collision is less likely.

To keep the costs of your auto insurance rates low, go for a higher deductible. This means that you will pay more out of pocket should a collision occur, but you will pay less each month. If you are leasing or financing a car, your lender may require you to carry collision insurance for the life of the loan.

• Comprehensive

Comprehensive insurance will cover areas that collision and liability insurance will not. Comprehensive insurance covers damage due to fire, floods, theft and vandalism. Comprehensive insurance will also coverage damage caused by animals that run into the path of your car, like deer, for example.

Some people believe that comprehensive coverage means that you are covered for anything that happens to your car. This is not true. Comprehensive coverage is simply car insurance coverage that protects damage not covered under liability and collision insurance. Keep in mind that comprehensive coverage will only cover the car in a theft or accident. It will not cover personal effects like installed equipment, after-factory stereo systems or the contents of your car.

Comprehensive coverage usually covers:

• Fire
• Riots
• Vandalism
• Projectiles
• Damage from animals

While it doesn’t cover everything that can happen to your car, it is important to have the right amount of comprehensive coverage to protect you from hefty out-of pocket costs.  Start saving BIG today by using our FREE quote comparison tool on our homepage!!

Shopping for Car Insurance

Rates for cheap car insurance are very competitive. There are a lot of companies on the market that are hoping to secure your business, so it is truly a buyer’s market when it comes to purchasing auto insurance. Most insurers allow you to receive a customized quote online. Take advantage of this by trying to compare auto insurance quotes before deciding on the policy that is best for you. In addition to auto insurance, some companies will cover your motorcycle, RV or commercial vehicles. Others offer discounts if you bundle services such as life and home insurance as well.

Finding the right auto insurance policy to cover your car does not have to be difficult. By knowing the amount of coverage you need, shopping around for the best rates and choosing the policy that works for you, you will be on the road to financial security.