If you drive a vehicle in Los Angeles, chances are that you already know a thing or two about car insurance. If that’s the case then more than likely you have heard certain terms being used when referring to this type of services such as deductible or premium. The question lingers, do you understand the different components that comprise an auto insurance policy. And if so do you know how to select the best coverage?
Forty seven of the great 50 United Sates require citizens to possess some type of auto insurance. Always a good idea to know what the minimum amount of coverage is required in your particular state. Not to mention knowing what additional or optional coverage might help you to protect you and your assets in the event of an accident.
Prior to purchasing any type of auto insurance, it would be wise to consider a variety of factors that should be taken into careful consideration. Some of these factors might include the type of vehicle that you are insuring, your driving record and the budget that you have set aside for the monthly premium. Grasping the basics and understanding the finer details of automotive insurance will give you confidence and peace of mind in the car insurance policy in the event of an accident.
Just to get you familiar with the different types of coverage that insurance companies offer as well as discussing possible insurance needs. In addition we will take a closer look at what affects the price of auto insurance coverage and how to lower the cost. Another area that we will be going into is understanding the components of your policy.
Types of Auto Coverage Every single individual that utilizes an auto mobile needs and in most cases is required to have car insurance. When you purchase auto insurance it is referred to as a policy. This policy is comprised of a variety of factors for instance, the type of vehicle you drive, and the type of coverage you prefer not to mention some other perks such as road side assistance.
The first mile stone in understanding what exactly is an auto insurance policy, is to learn the variety of auto insurance coverage that companies offer. Take into consideration that some of the offered coverage may not be required by your residing state and thus considered optional.
Liability – This type of auto insurance coverage pays for the end result of an accidental bodily injury not to mention property damages that involve another party. Injury compensation can include medical expenses, pain and suffering as well as lost wages resulting from the injury. This type of coverage can also pay defense and court costs. Note that liability minimums vary from state to state, it is always best to verify prior to purchasing what you assume to be your states liability minimum.
Collision – This coverage covers damages done to your vehicle caused by another driver or object.
Comprehensive – This coverage type pays for loss or damages to your insured vehicle out of the scope of an auto accident. This type of coverage covers damages caused by fire, wind, hail, flood, vandalism or theft.
Medical Coverage – Pays medical expenses despite which party was at fault.
Personal Injury Protection (PIP) – This type of coverage is required in some states. This coverage type pays for medical expenses for insured drivers, regardless of who is at fault.
Uninsured Motorist – This pays for your car’s damages when an auto accident is caused by a driver who does not have liability insurance.
Underinsured Motorist – Pays for your car’s damages when an auto accident is caused by someone who has insufficient liability insurance.
Many insurance policies combine these types of coverage, but prior to purchasing any it is strongly advised to seek your states liability limits to assure selecting the right protection for you. Once you have verified your states legal liability coverage minimum then you can begin searching for the cheapest insurance policy coverage.