One thing you do need to keep in mind, though, when you are shopping around for auto insurance is that you will need to meet the minimum requirements imposed by law. Once you have these requirements covered you can customize your auto insurance as you see fit.
Bodily Injury and Liability
This type of insurance is mandatory and protects you in a crash where another person has been injured. It is comprised of two amounts, with the first stating the maximum coverage for medical expenses limited to a single person while the second is the maximum amount paid out for the whole accident. So, if your coverage is 100,000/500,000, the insurance company would pay out no more than $100,000 for a single person and no more than $500,000 for the accident if more people were involved.
This is probably the most important coverage you can get as a driver so you will have to spend quite a bit of time doing auto insurance comparison to make sure you get the best deal for the most coverage. Remember that the more risk you present, the higher your premiums will be.
Collision insurance covers any physical damage caused to your car as the result of a collision in which you are deemed to be at fault. With repair costs being so high today, this coverage is worth its weight in gold.
When doing auto insurance comparison you will often run into the term comprehensive auto insurance. This type of policy will cover any damage to your car from unforeseen events, including fire, theft, hail, vandalism, tornadoes and many more.
No Fault Insurance
This insurance policy covers the medical expenses for the driver and passengers of the car, irrespective of who is to blame for the crash.
Underinsured or Uninsured Motorist
This is another form of vital coverage because it protects you from other people who do not have sufficient coverage or whose policies have been cancelled. The problem is that many people drive around with cancelled insurance policies and even if they may get into serious trouble with the law if they hit your car and don’t have minimum insurance coverage, you’re still left to pay for the damage yourself. However, with uninsured motorist protection your insurance company will foot the bill.
There are many other types of insurance policies available as an auto insurance comparison will reveal but you must remember that your premiums depend on the degree of risk you present for the insurer. For example, if you have a history of accidents and reckless driving your premiums will go through the roof with any insurer because they know they are more likely to have to pay out than with a driver who has never had a crash.