June 3, 2010

3 Must Have Features In Your Auto Insurance Policy

Key Words: auto insurance quote, insurance policy

Three Must Have Features in Auto Insurance Policy

Purchasing an insurance policy for your car can prove to be a daunting task. First off, there are hundreds of insurance companies out there and it is time consuming to have to research them all just to find the best auto insurance quote. Each type of coverage in the insurance policy has a specific purpose. Once becoming familiar with the coverage and which are the most important types, the task of choosing an insurance policy becomes a bit more tolerable. With a few clicks of the mouse, this is possible. While each type of coverage may have a different level of importance, depending on the individual, there are a few that are equally important to everyone.

Bodily Injury Liability is an essential car insurance feature for any insurance policy. Bodily Injury covers the medical costs for the other person, in the event of an accident. If your insurance policy does not cover those bills in full, then any extra cost will be out of pocket. The suggested minimum for Bodily Injury Liability on an insurance policy is 100/300. While it is not a state or national requirement to have at least that amount of coverage, it is strongly recommended! Medical bills add up quickly and you do not want to be obligated to pay those costs that your insurance policy doesn’t cover.

Collision is another important area of coverage to consider when searching for an auto insurance quote. It covers damage to the owner’s car from any accident where the car comes into contact with something. It will cover the cost of either replacing or repairing the policyholder’s car in the event of a crash; no matter who was at fault. Typically, there is a deductable amount, agreed upon at the time of the insurance policy purchase. This amount is how much will need to be paid before insurance will take over. The lower the deductable, the less money you have to pay before the insurance picks up the cost.

Finally, when purchasing an insurance policy, pay special attention to Property Damage Liability. If during an accident, your car causes damage to another party’s car or property, the cost of repair or replacement of the damaged item (usually the other person’s car) is covered, but limited to the terms and conditions outlined within the insurance policy.

Bodily Injury, Collision and Property Damage are three areas of insurance policy coverage that are essential and should be given the most attention when searching for an auto insurance quote. These three types of insurance cover the most common problems and costs when someone is involved in an accident.