List of Considerations When Buying Auto Insurance
Buying Auto Insurance – Online or use an agent, buying an auto insurance policy is complicated. When you’re looking for basic auto insurance, you’ll want to think about several different types of coverage, depending on your needs and budget:
1. Personal injury protection or medical payments coverage: covers your own medical and rehabilitation expenses resulting from an accident regardless of who’s at fault.
2. Bodily injury liability: pays for injury you cause others.
3. Property damage liability: pays for damages you cause to others’ property.
4. Collision: pays for damage to your car resulting from a collision with another car, object or as a result of flipping over.
5. Comprehensive: reimburses you for loss due to theft or damage caused by something other than a collision with another car or object.
6. Uninsured and underinsured motorist: reimburses you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.
Most states require vehicle owners to buy a minimum amount of bodily injury and property damage liability insurance before they can legally drive their vehicles.
General guidelines: the insurance industry and consumer groups recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident, since accidents may cost far more than most states’ minimum limits.
Bodily injury liability helps pay for the other driver’s medical bills, lost income, and emergency aid if they’re hurt in the car accident and you’re at fault. While property damage liability helps pay for repairs if you damage someone else’s property, like their fence or car.