Auto Insurance Made Easy
Is auto insurance a brave new world to you? Are you bewildered by the array of options to choose from? It’s not all that complicated. You just need to add a few new phrases to your vocabulary:
Bodily Injury Liability and Property Damage Liability insurance are the most important kinds of auto insurance to have. If you cause a car accident, Bodily Injury Liability pays for any injuries you cause the other people involved, and Property Damage Liability pays for any property damage you caused. In this era of skyrocketing medical bills, it is important to have sufficient Bodily Injury Liability. And when cars frequently cost $25,000 or more and roadside property can be even more expensive, having enough Property Damage Liability insurance is absolutely essential to protecting your personal financial assets. States often set a minimum amount, but go above it if you can. Extra coverage can cost surprisingly little.
Collision coverage pays for repairs to your own car, regardless of whether you were at fault for the accident. The larger the deductible you choose, the less your collision coverage costs will be.
Comprehensive auto insurance covers damage to your car from events other than collisions. Theft, vandalism, storm damage, damage from hitting deer, and so forth are covered. Window glass, a frequently broken item that can be expensive to replace, is sometimes covered by comprehensive insurance, but not always. Read your policy thoroughly, and consider getting extra insurance to cover glass if your comprehensive insurance does not cover it.
These are the most common and basic kinds of auto insurance. There are also types you are less likely to have, such as Uninsured Motorist Property Damage insurance. In states where not all drivers are required to have insurance, Uninsured Motorist Property Damage coverage is common, but it is rarer in states where all drivers are legally required to be insured. Before you buy Uninsured Motorist Property Damage insurance, determine whether a noteworthy percent of drivers in your region are uninsured. You may find that buying this kind of insurance is pointless, or it may be one of the best investments you can make.
When in doubt, remember that you can always change your auto insurance coverage after you sign a contract and decide you would be better off with a different level of coverage. Removing coverage may be harder than adding it, but most companies will allow you to reduce your coverage as long as you are above the legally required minimum amount of coverage. So be thoughtful but conservative, and spend some time thinking about how much auto insurance you need even after you have signed a contract. It may be expensive, but it is an investment in your and the other drivers’ futures.