Comprehensive, Collision, or Basic Insurance?
You know you need car insurance. You requested car insurance quotes from CarInsuranceQuote.com and have a couple of rates and policies to consider. But how do you know which policy is the best one for you? In order to get the coverage you need for a price you can live with, there are many things you need to know.
For instance, do you know what kind of car insurance you need? Most states require a minimum insurance plan; this is most often referred to as “basic” or “liability” meaning it is a policy that meets the state’s minimum insurance requirement. Liability means the legal responsibility that a person has to pay for the damages due to an accident or loss. However, what “basic” means will vary considerably from state to state. Some “basic” policies are simple no-fault policies that offer limited coverage. Some offer coverage up to $50,000 in damages.
“Comprehensive” insurance policies not only meet a state’s minimum requirement for basic liability coverage, but also offer substantial additional coverage. “Comprehensive” coverage not only offers to pay for damage that occurs to an automobile or its passengers in the event of a car accident, but also damage caused by fire, theft, or any other loss that are not the result of a collision. Worried about that big tree in front of your house during a storm? “Comprehensive” car insurance will cover the cost of a damaged window caused by falling branches.
“Collision” insurance pays to repair or even possible replace your car in the event of a car accident (or, obviously, a collision). Legally “collision” coverage is not typically required by the state, although the bank that holds your car loan may require it or the company you have leased a car from. Having “collision: coverage is actually a very smart choice because paying to get your car fixed can be quite expensive after an accident.
A “deductible” is the amount of financial responsibility you are willing to assume before submitting a claim to a car insurance company. Basically, if you and your car are in an accident that causes significant damage to your vehicle, you might be willing to pay for the first $1,500 in damages before your insurance company takes over. “Deductibles” range in value from $500 to $5,000, and often, the higher your deductible (the more you are willing to pay first), the lower your premium.
Once you feel comfortable with these terms and concepts, and know what kind of policy you are looking for, CarInsuranceQuote.com is ready and able to help you sort through the information and find you the best policy for the best price. Get your car insurance quote today!