What to Look For in a Car Insurance Policy
Your car insurance premiums will depend on several factors. First, your driving history, including speeding tickets, accidents, and DUIs, will affect your premium. You can lower your premium by maintaining a clean driving record. You should also keep in mind that the type of car you drive, as well as its value, will affect the premiums you pay. If you don’t drive often, you may want to consider a usage-based car insurance policy, which reduces your premiums based on the number of miles you drive.
Underinsured motorist coverage is also an option. It covers the costs of injury and death due to another driver’s negligence. This coverage can also come in handy in hit-and-run accidents. In some states, the minimum insurance requirement is low, and there is no requirement to carry liability insurance. Regardless, you can still obtain underinsured motorist coverage to protect yourself in these situations. There are some additional coverage options to consider when shopping for your car insurance policy.
Liability insurance pays for damage to other people’s property and damages to their car. It also helps pay for medical bills and other expenses if you cause an accident. Though liability coverage is required in most states, you may want to consider purchasing it above the minimum requirement. The extra protection will be worth it. Remember, though, that you’re responsible for any claims that exceed your coverage limit. A good insurance policy includes liability and comprehensive coverage. You should also consider collision and comprehensive coverage for your car.
The type of coverage you purchase depends on your needs. Liability coverage is mandatory and protects you in case you are at fault in an accident. Collision coverage, on the other hand, will pay for repairs to the other driver’s car. This type of coverage may not be required if you own the car outright, and you should always have collision coverage if possible. Comprehensive coverage protects your vehicle from fire and other risks, and is commonly sold with collision coverage.
Deductibles are another factor in determining the amount of insurance coverage you need. Deductibles can vary greatly, so it’s best to choose the deductible that suits you. A $500 deductible is a good example of what you’ll need to pay out of your own pocket if you’re ever in an accident. A higher deductible will lower your premium, but you’ll still need to have reasonable coverage if you’re involved in an accident.
Comprehensive insurance is required for drivers with car loans and leases. It’s also important if you drive a high-end model or can’t afford to make repairs yourself. It covers medical costs if you’re in an accident. It can cover everything from traditional medical bills to lost income and child care. For a fuller coverage policy, you should consider purchasing an umbrella policy. This policy provides additional coverage for a serious accident.