Understanding automobile insurance is key to finding the best rate for you and your family. Automobile insurance is dictated by the state in which you reside and register your vehicle. State laws and insurance coverage options should be researched prior to your purchase so that you know the minimum insurance you need for your vehicle. Below are just a few of the options given to motorists:
This is a non-collision coverage. This covers the loss or any damage to your insured vehicle in which there was not an auto accident. Examples are theft, vandalism, flood, fire, or any other natural disaster.
If your vehicle is damaged due to a collision with another vehicle or object, such as a tree or post, collision insurance covers the cost of damages. Full coverage is a term commonly used when you are offered a combination package of comprehensive and collision insurance.
PIP stands for personal injury protection. This coverage is required in some states and covers the payment of medical expenses. It is not dependent on who is at fault, but the insured driver will have coverage for treatment due to an automobile accident.
Property loss property damage insurance should be considered by motorists who do not drive their vehicle on a regular basis. If you have an older vehicle that is not frequently driven or will only be driven on a temporary basis, PLPD insurance is a more cost efficient option. This type of insurance is one of the most minimum coverage options offered.
If someone other than the insured driver is injured, liability coverage alleviates the costs. It covers medical expenses, pain and suffering as well as lost wages to during an accident in which property or another automobile is damaged. If there is a court case due to the accident, liability insurance covers court costs. Each state determines a minimum liability purchase requirement, but motorists can increase coverage to their own satisfaction.
If an accident is the fault of someone who does not have liability insurance, uninsured motorist insurance will pay for your car’s damages. It can be very frustrating that someone who does not uphold the laws of coverage can ultimately skip out on being liable for the accident and its damages. Insurance companies offer many policies that combine the varying types of coverage. Knowing your state laws and the breakdown of each different type of coverage can help guide you to maximizing coverage and minimizing your cost.
http://www.carsdirect.com/car-insurance/how-to-find-the-best-plpd-insurance-rates – Property
http://auto.howstuffworks.com/buying-selling/car-insurance1.htm – Liability