If you’re like most Americans, you probably own a car. And if you drive a car, it’s likely that you’re considering buying car insurance. Read on to know how to about the types of coverage and how to find a policy that fits your budget.
When you’re in the driver’s seat, you want to know that you’re covered if something goes wrong on the road. Car insurance can protect you financially in a variety of situations, including accidents that damage your car or cause injury to others. In this article, we’ll cover some of the most common types of car insurance and offer tips for finding affordable coverage.
Types of Car Insurance Coverage
Liability Insurance
If you are found legally responsible for causing an accident, liability coverage will compensate others for the bodily injuries and property damage associated with your actions.
Uninsured Motorist Coverage
Uninsured motorist coverage helps pay for injuries you suffer in an accident when the other driver doesn’t have insurance. Uninsured motorist coverage can also protect you if you are the victim of a hit-and-run. In many areas, insurance companies offer coverage for property damage in addition to bodily injuries.
Personal Injury Protection (PIP)
In the event of an accident, this insurance will pay your medical bills, regardless of whose fault it was. Some PIP insurance policies cover wages and expenses for tasks you can’t perform while recovering, such as house cleaning.
Medical Payments Coverage (MedPay)
With MedPay, you and your passengers will get additional medical coverage in the event of an accident. It does not cover other expenses, like lost wages.
Collision Coverage
This pays for repairs to your car if it’s damaged in a collision with another object or vehicle. It may also cover damage from potholes.
Comprehensive Coverage
This pays for damages to your car that are not the result of an accident or collision with another object. Covered losses include damage from hail, falling objects, cracked or shattered windshields, vandalism, and damage from animals. It also covers theft of your vehicle.
How to Reduce Your Auto Insurance Costs
Modify Your Deductible or Policy Limits
If you raise your deductible or lower the limits on your policy, you will pay lower premiums.
Check for Discounts
Contact the insurance company to see if bundling your policies could save you money. Additionally, ask about discounts for enrolling in a defensive driving course or maintaining a clean driving record.
Shop Around
Request quotes from at least three different companies to get the best possible car insurance rate.
Improve Your Credit Score
Car insurance rates are often lower for drivers with good credit.