Bodily Injury Liability;
If you are at fault in an auto accident, this coverage pays for medical treatments, rehabilitation, or funeral costs incurred by another driver, the other driver’s passengers, passengers in your car, and pedestrians. It also pays the legal costs and settlements for losses from pain and suffering.
Recommended coverage: at least $100,000 per person, $300,000 per accident.
Property Damage Liability;
If someone covered by your policy damages another person’s vehicle or property, repair or replacement of the vehicle or property is covered. Each state requires drivers to have property damage liability coverage up to certain specified limits, typically $15,000 per accident.
Recommended coverage: at least $100,000 per accident.
Collision and Comprehensive;
Collision coverage pays for the repair of your car or replacement of its market value, regardless of who is at fault. Comprehensive coverage pays for replacement or repairs if the insured’s car has been stolen or damaged as a result of events such as fire or windstorm.
Recommended coverage: $250 collision deductible; $100 comprehensive deductible.
Medical Payments (also known as Personal Injury Protection);
This coverage pays physician and hospital bills, rehabilitation costs, and some funeral expenses for the insured and the insured’s passengers. It also provides limited compensation for services needed during convalescence.
Experts recommend: Buy this coverage if you do not have adequate health insurance. Some states require this coverage, so accept the minimum amount (for example, the minimum is $2,500 in Maryland).
Uninsured and Under-insured Motorist Coverage;
This coverage pays the insured and members of the insured’s household for medical costs, rehabilitation, funeral costs, and losses from pain and suffering from an accident caused by a hit-and-run driver or by a driver who lacks enough insurance or has no insurance at all.
Experts recommend: Buy at least $100,000 per person and $300,000 per accident because this coverage is essential when driving on present-day city streets and highways.
Uninsured Motorist Property Damage;
This coverage pays for damage to the insured’s property by someone lacking insurance or having insufficient insurance to reimburse the insured’s costs.
Experts recommend: Buy at least $100,000.
Glass Breakage;
This coverage pays for replacement of cracked glass to the insured’s car, regardless of how the damage occurred.
Experts recommend: Buy this coverage if you live in an area prone to car break-ins, a rural area with unpaved roads, or an area where roads are under construction or repair.
Rental Reimbursement and Towing;
This coverage pays for towing your wrecked vehicle and the payment for a car rental while the automobile is being repaired after an accident.
Experts recommend: Buy rental coverage only if you have one vehicle and no alternative transportation, but buy towing coverage because it is cheaper than auto club dues if your car is immobilized (about $15 per vehicle, per year).
Liability insurance;
A series of three numbers. For example, 100/300/100 means that liability limits are $100,000 per person for bodily injury, $300,000 in bodily injury/injuries per accident, and $100,000 in property damage per accident.
Compare rates annually;
Remember auto rates are adjusted frequently for geographical areas, driving habits, vehicle damages etc. As these insurers adjust their pricing strategies, rates differ radically from company to company. Experts know the best ways to find the lowest prices on car insurance is to have car insurance companies compete for your business and compare these rates side by side without compromising quality. Why pay for the same coverage’s for as much as $575 a year more.
Each year you should comparison-shop; it is one way to keep your rates affordable. Compare Car Insurance Now has done all the leg work checking the best rates from top insurance companies and placing all the information you need on one site. Here you will be given the option of choosing the recommended coverages, or you can customize every limit and deductible to fit your needs.
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