A car insurance quote reflects the annual premiums you will pay for a given amount of coverage with a particular insurer. Usually, the quote shows the premium you will pay on an annual basis, though some quotes may provide per-month estimates as well. The premium the insurer will quote you is determined from the individual premiums of a number of coverages. Each individual coverage has its own premium that contributes to the total amount you pay for auto insurance every year. The better you understand the different premiums that comprise your car insurance quote, the better equipped you will be to identify the best policies at the lowest rates. Read on for an explanation of the various coverages that comprise a standard car insurance policy.
Liability: Bodily Injury & Property Damage
The liability portion of your car insurance quote is usually included by default, as almost allstates have mandatory minimums for liability coverage. Some auto insurance quotes will only include the mandatory minimum amount of coverage unless you specify otherwise. Liability protection covers you in the event that you cause injury or property damage to another person or persons. Typically, car insurance quotes express liability coverage in the following format: bodily injury liability for one person, bodily injury liability for two or more people, and property damage liability. For example, your quote might list the liability portion of your policy as $15,000/$30,000/$10,000. This would mean that you have $15,000 of liability coverage if you harm one person, $30,000 if you injure two or more persons, and $10,000 of protection if you damage property with your vehicle.
Protecting Your Own Vehicle: Comprehensive & Collision
A standard car insurance quote will include premiums for comprehensive and collision coverage. Collision coverage will pay to repair or replace your vehicle if you are in an accident with another car or an object. Any damage your car incurs that is not the result of a collision is covered by comprehensive. For instance, if your car caught fire, comprehensive coverage would pay for the damages. In reviewing your auto insurance quote, make sure you find out what the deductibles are for collision and comprehensive. Your quote might be deceptively low if the provider has set your deductibles higher than you can really afford.
Underinsured & Uninsured Driver Coverage
Your state may require you to also carry certain amounts of uninsured/underinsured motorist coverage. This coverage will pay for your medical expenses if you are injured in a collision with an uninsured or underinsured driver. In some states, this coverage can also help pay for property damage the uninsured driver caused. If your car insurance quote is too high, you might consider eliminating this coverage or reducing the coverage amount to the mandatory legal minimum, if applicable.
Paying for Your Injuries: Personal Injury Protection
A car insurance quote sometimes includes medical payments coverage, also know as personal injury protection (PIP). This coverage is designed to help pay for your medical expenses resulting from injuries sustained in a collision. PIP will also pay for the medical expenses of your injured passengers. If you or your passengers die in a collision, PIP will also pay for funeral expenses, burial, etc. Medical payments coverage is largely unnecessary if you have an adequate health insurance policy, but you may want to carry a small amount to help pay for your health insurance deductibles in the event of an accident.
Additional Coverage
The most common additional coverages included in car insurance quotes are rental reimbursement and towing or roadside assistance. Rental reimbursement will pay for a rental car in the event that your vehicle is incapacitated. Rental coverage is usually limited to a certain amount of money per day and a limited number of days. With towing assistance, your insurer will cover the cost of a tow truck if your vehicle is incapacitated. Some policies include general roadside assistance, which offers emergency services like towing, flat-tire changes, fuel delivery, etc.
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