Selecting an the Best Auto Insurance Plan for Your Needs

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    Oct 05, 2012
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Selecting an auto insurance plan is not as easy as most people make it out to be. Everyone knows that driving a car without insurance is illegal; what they don’t know is that it is more costly and dangerous to drive a car with the wrong insurance plan. The majority of the insurance companies that offer low costs policies deliver bare bones policies that cannot be of help when you need the policy most. In addition to this, it is highly likely they will not give your claim the attention needed in case of an accident. In order to get the best auto insurance plan, you need to compare different quotes. However, before doing this, there are a couple of things you should understand and they are as listed below.

Should you settle for Full or Liability Coverage?

Before you start comparing rates, take into consideration the type of coverage you need. Your options in this case include full and liability coverage. The cheapest policy is liability and if your car gets totaled or damaged, it does not pay for it to be repaired. Rather, it covers the driver and the property hit or destroyed by the car. Full coverage on the other hand ensures that in case your car gets totaled you can afford  to buy a new car. Full coverage is broken down into two coverage options; comprehensive and collision. Collision is offered when you need to repair your car after it was hit by something or someone has damaged it. Comprehensive covers all costs regardless of what caused the accident in the first place.

Understand liability Limits

Liability limit refers to the maximum amount the insurance is willing to pay in damages. Through the local DMV, you can find out what the liability limit for your state is. You need to be careful with this to ensure you don’t settle for a liability limit that is too low, leaving you vulnerable especially to large payouts and lawsuits in case you were at fault.

Look at the Deductibles

This is the flat amount you are expected to pay in case you get involved in an accident. Before your auto insurance can kick in, you are expected to pay this amount. A high deductible translates to low premiums but you should be careful to ensure it is not too high. Choose a deductible you are comfortable paying. When filing a claim, make sure that it is not an amount that is close to the deductible amount.

Keep an Eye on Extras

There are other things you need to be on the lookout for such as towing charges and reimbursements of the cost of rental cars. While these might seem like unnecessary extras, they can be of great benefit and reduce the costs you cover out of your own pocket.


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