Compare Car Insurance: What Are My Policy Options?So, you have a car, and are looking to get it insured. Not only is this a good idea, its also the law. However, shopping for car insurance can be painful. It’s pricey, and what are all these options? Liability, collision, comprehensive? What in the world is a deductible? If you find yourself a little confused, please read on.
First, lets talk about the different levels of policies you can get. First of all, there is liability. This covers you for your personal liability in the event of an accident. This is the minimum level of insurance required by law, so make sure you have this, at the very least. Note that this will not protect your car at all, it is only to cover you in the event of an accident involving someone else.
If you need some crash coverage yourself, get collision insurance. Collision insurance isn’t usually required by law (though it might be by the bank if you’re financing the car), but its a good idea if your car is at all valuable. Collision insurance will cover the damage (or replacement) of your car in the event of an accident.
Usually, there will be a deductible, which is the amount you will still owe in the even of an accident. The insurance company should cover over this number, but you usually have to pay the deductible out of pocket. The higher the deductible, the lower the premiums, so keep this in mind when you compare car insurance.
The final layer of protection is comprehensive, which protects you from things like theft, weather damage, and other types of loss or damage. Having comprehensive will get your car replaced in the event of a theft, or cover repairs in the event of vandalism. This coverage is really nice, especially if you have a newer, nicer car. Clunkers can often get away with not having this coverage fairly well.
When it comes time to actually compare car insurance rates, be sure to check out the wide variety of sources available on the internet. By understanding the basic terminology, you can quotes side by side to know exactly what you’re getting with your car insurance policy.
This should give you a good basic map to use when you’re out comparing car insurance. Remember, you always need to have liability coverage, but how you choose to insure yourself beyond that is up to you. Juggling these options can save you a lot on premiums, but you’ll have to pay more in the event of an accident or other damage. Just something to keep in mind. However, if you use good common sense, you should find it easy enough to compare car insurance and get a great rate.
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