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Auto Insurance Coverage Options

The point of having auto insurance is to ensure that you are driving legally and are covered just in case something happens. There are many different types of coverage to choose from. Choosing the policy that best fits you is the decision that you must make.

Choosing the right policy

When deciding which insurance policy to purchase there are many factors involved in the process. In order to pick the right one, you will need to determine the following factors:

  • Number of people in household to insure
  • Deductibles
  • How much coverage you’ll need
  • Driving record
  • Driver’s age (study on driver age)

Quotes

The next thing that you will need to determine is which insurance company to go with. Again, whatever company you pick is up to you. Maybe your family has gone with the same company for years, but there are new ones that pop up daily so here are some things to think about:

  • Quotes -- Whenever you are searching for a car insurance company you will need to get a quote first. The Internet is a great place to start the process. In addition, there are many local insurance companies that you can call on.
  • Evaluate -- Once you get a quote from more than one company it is now time to do some research. You will want to research the company. Things such as how long the company had been in business are useful to look up as well as how reputable they are.
  • Review -- Before signing anything, you will want to review the contract. There is always a lot of fine print on these contracts, so make sure and read the small print as well.

Policy options

There are many different types of coverage options to pick from as well. The coverage you pick all depends on the type of budget you are working with and also the type of coverage that you are looking for. Here are some coverage options:

  • Collision -- When there is an accident this option covers your car regardless of who is at fault. In fact, most people carry collision coverage because if there ever is an accident they do not have to pay out of pocket.

 

  • Comprehensive – Comprehensive insurance, on the other hand, covers your vehicle for anything that does not fall under an accident. Examples of this are theft, fire and even vandalism. Most of the time this type of coverage is used in conjunction with collision with animals.

 

  • Medical -- This option is one of the most important ones due to the high cost of going to the hospital. The coverage is used on both the driver and passenger. It covers medical expenses up to a set limit. There are options on how much you will need.

 

  • Uninsured/ underinsured motorists -- If you want to feel protected, you will definitely need underinsured/ underinsured motorist coverage. It covers injuries, losses and death for the driver and passengers who get hit by someone who is either not insured or does not have enough coverage. 

 

  • Property damage -- Now you may or may not choose this option depending on if you want to be insured against destroying someone else’s property. It is a very good option to take out on your policy because things happen when you least expect it.

 

  • Bodily injury -- This option is a bit different from medical as it covers medical care and losses. An example of this is loss of work. If you are involved in an accident and have to miss work due to pain and suffering, this coverage covers some of your wages.

Insurance

After you have picked out the best policy options for you and your family, the next step in the process is to decide what type of auto insurance you want. There are many different types as the prices rise accordingly. Payments for these premiums can be made monthly or yearly. Here are some auto insurance coverage options:

  • GAP insurance -- GAP insurance, as implied by the name, covers the excess amount that you owe on your auto loan. This can be a great addition to your original vehicle insurance as it will protect you. When picking gap insurance make sure to do some research beforehand.
  • Temporary car insurance -- Temporary, or short term insurance as it is also referred to, is nothing other than insurance that can be taken out for one to 28 days. Most people use this type of vehicle insurance when they go out of town and rent a vehicle. This insurance can be used on most cars and trucks. (more info)

 

  • Non-owners insurance -- You always need some form of insurance whether you own a vehicle or not. Now the non-owner insurance is used when you do not currently own a vehicle. This type of insurance is very inexpensive and covers you so that when you do get to own a vehicle you will not pay high rates. (learn more here)
  • New driver insurance -- The time comes in every parent’s life when their children reach the age to drive. It can be a exciting time or then again a scary moment for the parents. Insurance companies do offer a new driver’s insurance for those under 18 years of age. They must have a permit and insurance.

Vehicles

The type of vehicle you have will cause your auto insurance policy to go up or down. That’s another consideration for purchasing a vehicle. Here are some types of vehicles that will determine how much your insurance will be:

  • High-end sport’s cars -- High-end sports cars such as the Porsche line and Jaguar will cause your car insurance to go up because these types of cars, although they look great, are liabilities on the roadways due to their speed and looks.
  • SUVs -- Most SUVs will in fact lower your car insurance. The reason for this is because they are deemed safe on the roadways. They are also equipped with lots of safety features such as air bags.
  • Older vehicles -- Older vehicles can also contribute to lower vehicle insurance rates. This is because they are older and most of the time not worth their value. These types of cars are really great for first time drivers and those who do not travel far from where they live.

Always make sure and do research on auto insurance coverage options and insurance companies before making a decision. If you want more information about the basics, you can click here.

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