How to Choose Best Auto insurance? Which Coverages is best for me?
An auto insurance policy is a contract between you and an insurance company. You agree to pay the cost of the insurance policy, called a premium, and to obey the insurance company’s stated rules. In return, the insurance company agrees to pay for certain expenses associated with an accident or other covered losses. Also to compare car insurance quotes and coverages, you need to be familiar with insurance terms and recommended car insurance coverages for 2023.
An auto insurance policy consists of different insurance coverages. Insurance companies offer many types of coverage. Only four of them are mandatory: Bodily Injury to Others, Personal Injury Protection (PIP), Bodily Injury Caused by an Uninsured Car and Damage to Others’ Property. It is sufficient if you have a policy to cover that cases. Consumers commonly purchase Optional insurance coverages such as Comprehensive and Collision, but is not mandatory. So which auto insurance coverages are best for you?
Auto Insurance Coverage Types
Every insurance coverage has a limit, meaning the insurance company will not pay more than this amount for a claim. For compulsory car insurance, each of the required coverages has certain minimum limits. You cannot take less than those limits. Below are the Minimum Required Limits for different coverages in the USA:
- Minimum Bodily Injury( BI) Liability Limits in USA:
- $15,000 for the death or injury of any one person. If one person is injured in the accident, your coverage pays up to $15,000.
- A total of $30,000 for the death or injury of more than one person in any one accident. If 2 or more people are injured, the coverage pays up to $30,000. The coverage will not pay more. The injured people share the money.
- This coverage applies to injuries that you cause to someone else.
- Minimum Property Damage (PD) Liability Limits in USA:
- $5,000 for damage to the property of other people.
- This pays for damage you cause to someone else’s car, or to objects and structures that your car hits.
How to Choose Auto Insurance Coverages
- If you have a regular vehicle and can handle a few days without a car, third-party property insurance may be all you need.
- Comprehensive insurance is for you if you can’t pay for repairs (yours or someone else’s car) or if you can’t live without a car.
- Third party property Provides fire and theft insurance. If you park on the street and someone steals your car, you can get insurance.
- First research what your car insurance does not cover, for this check the exclusions in your policy. For example, they may not cover damage from rust or vandalism, or they may not cover damage to cars parked on the Street.
- Discounts can be provided under some conditions, for example, if you buy it together with other types of insurance or if you install an alarm on your car, you can get a discount, ask your insurer.
- Ask your insurer if they will charge you extra even if the accident is not your fault.
- Weigh the difference between high premium and low surplus. You can save on your premium by increasing your surplus.
How to get discounts and Cheapest car insurance Quote
Most insurance companies or agents can provide some discounts for you. Before buying car insurance ask the agent if they offer discounts and consider the following:
- Do they give multiple car discounts for insuring multiple cars?
- How about mature driver and good driver discounts?
- Are discounts offered for airbags, anti-theft devices, or other features?
- Do they have Installment plans? Do they charge a service fee? if so how much?
- Are there deductibles on your policy for comprehensive and collision coverage insurance? If you want, you can lower your premium by raising the high deduction.
- there is little need for comprehensive and/or collision coverage, If your car is older.
- If you don’t have collision coverage, ask for uninsured motorist property damage coverage.
- When Agents sell insurance, they get a commission from the insurance company, but Brokers charge an extra fee, called a broker’s fee, from the purchaser. These fees are not determined by any law, so they may be different. Ask if there is such a fee, if there is, you can discuss and negotiate the fee.