Auto Insurance Quotes ~ CHOOSING THE RIGHT LEVEL OF AUTO INSURANCE : There was a time when owning a vehicle was classed as a luxury, but these days driving has become more of a necessity and therefore the number of autos on the road has increased hugely.
With so many vehicles on the road, there has also been an increase in the number of accidents and collisions, not to mention the number of acts of damage or vandalism on motor vehicles.
These are just some of the reasons why taking out auto insurance is important.
Auto Insurance Coverage Types
There are many different types of coverage available to suit all needs and budgets, but for most people the level of coverage that they take is based upon what they can afford. It is important to remember that you must have at least basic coverage by law before you can take your vehicle out on the road. The more comprehensive and feature-rich your policy, the higher your premiums will be, but at the same time you will also have a much higher degree of protection against an array of eventualities.
Liability Insurance Coverage
Liability insurance coverage is designed to payout in the event of property damage and physical injury if you were at fault. This type of coverage also includes legal costs in most cases, although it is important to check this when you take out the policy. Collision coverage is designed to payout in the event of damage incurred as the result of a collision with an object, and there is usually a deductible with this type of insurance.
Comprehensive Coverage
Comprehensive coverage is designed to payout in a wide range of circumstances, such as theft, vandalism, natural disasters, and fire. There is also a deductible with this type of coverage, and the higher the deductible, the lower the premiums. If your car is financed then you will normally be required to take out comprehensive coverage.
Other Types of Car Insurance
Other types of coverage that can be added on to the policy include personal injury protection, where medical costs are covered mo matter which party was at fault; uninsured motorist coverage, which pays out for damages/injuries that you incur should the driver that hit you not be covered by liability coverage; and rental reimbursement coverage, which covers you for the cost of a rental car if your damaged vehicle is temporarily off the road.
Factors to take into consideration
There are a number of factors that you need to take into consideration when selecting your level of auto insurance coverage.
Your budget will obviously play a large part in the level of coverage that you take out. You may also want to consider the age and condition of your vehicle – you may not want to pay out the higher premiums of comprehensive coverage if the cost of the premiums ends up amounting to more than the value of the actual vehicle!
Also, you should consider the amount of time that you are on the road. If you are driving for a number of hours every day, you are more likely to be involved in an accident than someone that drives only occasionally. If you use your vehicle for business as well as personal use, you will need to look into appropriate commercial insurance coverage.
