Car Insurance Policies Explained

Car insurance can be a delicate topic for many of us. We should not pretend we understand every term and every aspect of car insurance unless we are really experts. There are so many state regulated aspects and laws and only agents are aware of them. However, what we can do for you is to explain the basics of the most common policies. We can also provide with free auto insurance online quotes. Make sure to read more on our website!.

Liability insurance is a must have policy. State Minimum Liability Insurance is required by almost all states in the U.S. with varying amounts of minimum coverage required by each state. You’ll notice when looking at examples of liability insurance the numbers are usually shown in the format 10/20/10 – fictional values used here (check your state’s minimum). The first two numbers (10/20) refer to the bodily injury liability limits to help pay for injuries or death to another party. It is read as $10,000 paid to each person with a maximum of $20,000 per accident.  The final “10” refers to the $10,000 worth of coverage for property damage in an at fault accident. Liability insurance does NOT pay for damages to your property if you are the guilty driver, only to the other party in the accident.

Comprehensive and Collision Coverage are another 2 important policies.  If you are leasing your vehicle or still making payments, the terms of your lease or auto loan likely stipulates that you carry both C&C coverage to protect dealer or lender’s interests. Comprehensive insurance protects you from losses incurred to damage to your car by things other than a collision (theft, vandalism, natural disaster, falling objects, fire, hail, flood, striking and animal). Other important insurance products are: uninsured motorist insurance, rental car reimbursement, road assistance and DUI/DWI insurance.

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