Car insurance is a highly competitive field, and as a car owner, you can take advantage of this by shopping around to see which company will give you the best deal. Write down the types of insurance you are interested in purchasing, including those that are mandatory, and get quotes from three or four insurance providers. Some will offer packages that may save you money, while others will offer packages that will have you paying for types of car insurance that you may not need.

Besides premium rates, see how much coverage you are getting and find out about limits, restrictions and any additional fees. Car owners typically focus on saving money, but it may be worth a few extra dollars to be able to email or fax in an accident report and to have someone pick up the phone when you need to file a claim or have a question you want answered.

You?ll want to consider the various types of car insurance listed below:

Bodily injury liability insurance: This is mandatory in most states. Should you get into an accident, the driver and passenger(s) in the other car can sue you for their medical bills. In today?s litigious society, this is the type of insurance you most want to have, especially if you have significant assets.

Property damage liability insurance: This is another liability insurance that you won?t want to skimp on since it will cover the cost of repairs for the other driver?s car. Should his or her vehicle be totaled, replacing a $40,000 car means that you need sufficient coverage.

Personal injury protection (PIP): This is mandatory in some states. PIP is a policy covering medical costs for your family, even if the other person is at fault. Your health insurance may cover this, so check that policy before paying for a lot of PIP coverage.

Collision insurance: This covers repairs or even replacing the car should there be an accident. As cars get older and depreciate in value, drivers are typically less inclined to have collision insurance.

Comprehensive insurance: Should your car be stolen or destroyed by a natural disaster, this is the coverage that will pay for your loss. Again, over time, you may lessen the amount of coverage you are carrying should you have an older car.

Other types of insurance include rental reimbursement, towing, glass replacement and uninsured or underinsured motorist insurance. Glass replacement can be costly, so it is one you may consider. Uninsured or underinsured motorist insurance is one that you should strongly consider, since there are many underinsured motorists out there, and you may not be able to collect from someone without sufficient coverage.

Because insurance is based on the ages of the drivers in your family, the car you drive and where you are living, policies will vary greatly. However, you can possibly help lower your premiums by taking good care of the vehicle, installing antitheft devices and maintaining a clean driving record.

3 comments

  1. Jenice  

    14 September 2011 at 05:07

    liability insurance
    Nice post. We all wanted to find an insurance policy that best fits to our needs and is best in all the aspects. But there are few people who succeeds as to make out best deal a lot of knowledge is needed. But you have made it an easy job for all by explaining all the types that fall under car insurance policy. Thanks a lot

  2. Amber  

    28 March 2012 at 06:20

    Car insurance and auto insurance are strictly required in many states. and it is also good for us when we face vehicle accident or a property damage then we understand the importance of vehicle insurance.


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  3. Auto Insurance Quotes Texas  

    12 September 2017 at 23:03

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