April 2, 2010

Minimum Coverage Included In The Price Of Any Auto Insurance Quote

When most drivers look for an auto insurance quote, generally they’ll try to find the lowest rate possible. In order to lock in a great premium, many motorists begin cutting their coverage, assuming that the minimum coverage offered by an insurance provider will be adequate in the event of an accident. Unfortunately, this is usually not the case. While every insurance provider offers minimal coverage levels, these levels vary quite a bit, and it’s important to understand the coverage that each policy offers when looking at any auto insurance quote online.

Any insurance policy will offer your state’s minimum legal requirements for insurance, as they’re not allowed to offer an illegal policy. You’ll have to look up your state’s individual minimum requirements, but most states require liability coverage for property damage and personal injury. This means that your insurance policy will cover costs for accidents that you cause up to your coverage amounts–however, your deductible may be set fairly high, which will limit the potential benefits of your coverage. Most states don’t require any personal medical coverage (with the notable exception of no-fault states), so you may be risking your own health by driving with the minimal car insurance coverage offered by an online quote. You’re simply covering the costs of other drivers, and you might not even be paying for enough coverage, considering that the costs of a major accident can easily exceed state minimums.

If you’re buying your vehicle through a loan, most banks will require you to buy comprehensive coverage, which covers damages to your vehicle in an accident that you cause. This protects the bank’s investment, and comprehensive coverage often protects you against auto theft and environmental damage as well. Comprehensive coverage is a fairly common add-on, and as such it’s often automatically added to quotes for auto insurance rates, particularly if you tell the insurer that you’re leasing your vehicle or buying it on a loan. Look into comprehensive coverage and if your policy currently includes it.

Remember to read over any quote that you receive, and look carefully at the type of coverage that an auto insurance provider offers as part of their basic policy. Try to consider what coverage you’ll need if you’re involved in an accident, and don’t avoid important coverage to save a few dollars on your auto insurance rates. It’s far more important to drive with good coverage, although it’s tempting to purchase the smallest amount of car insurance coverage possible. Keep your rates low by collecting several insurance quotes before making a purchase, and you won’t have to sacrifice important coverage in order to save a relatively small amount of money each month.