November 11, 2011

Choosing Your Coverage When Buying Auto Insurance Online

Buying auto insurance online can be extremely beneficial, as it's often possible to find much lower prices on policies with great coverage. However, this isn't always the case. A policy with a high deductible or extremely low coverage limits can be nearly worthless, so before shopping, drivers should know how to properly choose insurance coverage.

It's a good idea to know a state's auto insurance requirements before looking for insurance quotes, as requirements vary greatly from one state to the next. It's illegal to drive without sufficient insurance and most insurance companies won't let drivers buy a policy with less than the bare minimum coverage amounts.

Policy holders should generally buy much more auto insurance coverage than they're required to buy, as state minimums usually won't cover all of the costs of a major accident. Many states also don't require some important types of coverage. Personal injury protection, for instance, is only required by a handful of states, but as this coverage pays for a driver's medical bills and the medical bills of his or her passengers in an accident, it can be an important type of coverage to have. The best tactic is to understand the various types of insurance coverage before shopping, as this will allow for a better understanding of the coverage limits listed in a quote.

Setting deductibles can also be tricky. Deductibles are the amount of money that drivers must pay before their insurance companies handle any of the costs of an insurance claim. A high deductible could cause serious financial strain if a driver ever needs to make a claim. However, drivers who don't spend a lot of time on the road may decide to raise their deductibles to keep their insurance rates down. This carries a risk, but ultimately it's a judgment call. Drivers should consider the likelihood of various types of insurance claims and choose deductibles that match what they could reasonably afford. This means that most drivers will want to keep their collision and comprehensive car insurance deductibles fairly low, as the likelihood of one of these types of claims is relatively high compared to the chances of a liability claim or other type of claim.

Shopping for auto insurance online is much easier for drivers who know the types and amounts of coverage that they need. Auto insurance comparison websites can be used to compare quotes for similar amounts of coverage, and after drivers take the time to choose smart deductibles and coverage limits, it's easy to find a low-cost policy with acceptable coverage that will work to protect the driver during an auto insurance claim.