Comparing Different Kinds of Car Insurance Quotes to Make the Smart Purchase

Internet has offered the best opportunity to compare car insurance quotes and get the best deal. We have to spend a little time to compare auto insurance quotes from different providers. Online comparison facility has offered consumers the facility to get –

  • Multiple quotes from carriers
  • Review policies
  • Coverage alternatives
  • Deductibles

Evaluating the policies in conjunction with one another allows you to certainly find the most willing provider, who offers best coverage at lowest premium. In this article, you will get to know how to compare insurance quotes as well as the most vital aspects to be kept in mind while shopping around.

Different kinds of auto insurance coverage

Before comparing the companies, quotes, policies and deductibles, first study the kinds of auto insurance policies available. The three major policies in general are –

  1. Liability
  2. Collision
  3. Comprehensive

Liability auto insurance coverage

In this kind of coverage, if there is an accident due to the insured drivers’ fault the damages and claims of other passengers’ injuries and car/s are covered up to the car policy limits minus your deductible. In case of lawsuit, the insurance provider also offers a lawyer to defend you.

When you compare the cost of paying damages, medical bills and defending lawsuit cost that you would spend from your pocket to the monthly insurance premiums then you will see that it is advantageous to buy liability auto policy. Even if you are not responsible for the accident, your name may be in a court case and you may be in need of a legal representative to defend you.

Liability insurance is mandatory for vehicle drivers, but minimum limits differ in each state. It is wise to buy this policy for your own protection. When you request liability insurance quotes there can be substantial difference between different carriers.

Some charge high premium to avoid you because they are more inclined in servicing drivers with ‘high risk’. Frankly speaking, it all depends on each provider’s statistical breakdown of every driver’s risk profile and their likelihood of filing a claim that may need a payout.

Collision coverage

This coverage is not legally necessary, but it is a condition that needs to be fulfilled to get a car loan from the bank or lender. Your car damages are paid for in this coverage. Usually, it is deductible, which means you pay for the repairs before the insurance provider reimburses your claim.

While comparing collision insurance quotes consider a high amount deductible instead of the common $500 because your premiums are lowered. If you have an ‘old car’, whose cash value is less you can consider deductible of high amount and save on premiums, which can be used in investing in a new car, if your car meets with an accident.

Comprehensive coverage

Comprehensive insurance includes coverage from damages caused due to natural disaster. Just like collision insurance, comprehensive has deductibles, which may be stipulated on car loan from banks/lenders. Comprehensive and collision coverage are both expensive.

Those cars in need of full coverage must buy this option, but generally, anyone with car loan must have comprehensive coverage because it helps to cover the loan cost even if the car is totally damaged before the loan payment is completed. You can select collision or comprehensive coverage with high deductibles for old cars with low re-sale value to balance the cost.

Author’s Bio:

Chris Stamper had written many articles explaining why it is important for us to compare auto insurance quotes in order to make the right choices. Please visit their website if you are looking for cheap auto insurance.

Post Comment