Start Here: Compare Free Auto Insurance Quotes from the Top Companies

While you’re looking over your free online car insurance quotes, keep these factors in mind to help you decide which coverage is right for you.  This brief overview will assist you in determining what coverage you absolutely need and what all those technical insurance terms really mean.

You Need to Have this Auto Insurance Coverage

Liability:  This is the one coverage you must have by law no matter what state you live in. Liability covers the cost of damage and injury to others due to an accident you caused.  It combines two policies, bodily injury liability and property damage liability.

Medical Payments Coverage:  This is intended primarily to cover medical expenses for people other than yourself that were in your vehicle and suffered bodily injury in a covered accident.  Insurance companies encourage the prompt use of such coverage to ensure that the injured person is cared for as soon as possible preventing them from wanting to sue the driver at fault.  Depending on the policy, there could also be compensation for lost wages.

Uninsured/Underinsured Motorist Insurance:  These are two distinct policies.  They are necessary for those incidents where the driver does not have any insurance or their insurance covers only part of the expenses.  Uninsured motorist insurance covers your expenses when the other driver has no liability coverage.  Underinsured motorist insurance covers the part of your medical expenses that is not covered by the other driver’s coverage.  Most states do not require either of those policies, but some require one or the other and some states even require you to have both.

Here are other Auto Insurance Coverage Items You Might Want to Get

Personal Injury Protection Coverage (PIP):  PIP covers items like lost wages, childcare expenses, pain and suffering expenses due to injury or death in a car accident.  PIP is required in most “no-fault” states as well as in Maryland, Delaware and Oregon.

Collision Coverage:  Pays for repairs or replacement on your car after an accident for which you were at fault.  Depending on the policy, you could be required to pay a deductible.  Collision coverage is not required by law in any state but is recommended for newer automobiles and may be required if there is a lien on your car.

Comprehensive Coverage:  If your car is damaged due to a collision with an animal or by a fire or theft by an unknown party or by what is generally referred to as an “act of God”, the repairs will be paid for if you have this coverage.  Depending on your policy, a deductible may apply.  Just like collision coverage, comprehensive coverage is not mandatory in any state but may be required if there is a lien on the car. Comprehensive coverage is also recommended for newer vehicles.

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