Compare Auto Insurance For The Best Buy

When you Compare Insurance Coverage these are the policy elements you need to compare:

Limited liability is the most important part of your entire car insurance policy.  Is not only required by most state auto insurance laws, it can save you a lifetime of misery in the event of an accident.  Liability car insurance protects you against the cost of damage and injury that you cause to another in an automobile accident in which you are in the wrong.  Without this insurance you would be personally sued and could spend the rest of your life paying this debt. 

Limited liability is actually made up of two parts.  Bodily injury and property damage liability.  Bodily injury liability insurance protects you from being personally liable for persons injured in an accident.  Property damage liability insurance protects you from the cost of damage to any physical property be it vehicle, building, pole or any other type of property.

All policies split your liability into three sections.  You’ll find them on your policy under the liability section.  They are referred to as the split limits of your liability insurance. 

So for example your policy reads 50/100/25 and you carry $1 million dollars in liability insurance.  This would translate to
$500,000 to cover bodily injury caused to another person, $1 million dollars to cover bodily injuries caused to everyone in the accident, and $250,000 to cover property damage.

Each state requires minimum levels of liability insurance be covered.  You’ll need to check for your states requirements.  Insurance analysts and experts recommend a minimum of $2 million dollar in liability regardless of your states minimum, requirements which are usually around the $50,000 range. 

The reason $2 million is recommended is the cost of medical treatments can sore very quickly, added with lost income and any long term damages you may be responsible for, you can quickly see how fast it could add up.  When the liability insurance is gone they come after you.  Not a nice thought!

The medical portion of your policy provides for the immediate treatment of injuries caused by the car accident. You, your family members and other passengers in your vehicle are covered, regardless of who is at fault for the accident.  Depending on the policy you carry you may also be covered for lost wages.  The no fault insurance states are usually the states that require the insurer to carry personal injury insurance

Underinsured and uninsured motorist protection insurance is to protect you when the other drive is at fault and does not cover adequate insurance, or sometimes no insurance at all.  They are usually quoted together but they really are two separate policies.

The uninsured motorist insurance is needed if the other driver has no liability coverage at all.  It was either not required in his or her state or they chose to drive illegal.  Where as the underinsured insurance pays for injuries that exceed what liability insurance the wrongful driver had.  Your insurance company will ante up and continue to pay then seek financial restitution from the driver through the courts.  Most states do not require either of these insurances but they are very smart to carry because they protect you.

So now that you’ve got the abc’s of insurance you can compare auto insurance intelligently and with an additional scrutiny.  Are you ready to find the best rates around?  Get Free Insurance Quotes!