Whether you’re looking for a new car, or you’re just thinking about your own current insurance needs, it is important to make sure that you’re getting the best deal on car insurance. Plus, car insurance can be hard to understand, because there are so many different options, and different companies to look at. Here is what you need to know about each one.
The Cheapest For a Reason
The cheapest form of car insurance is a liability only policy. This is the policy that is required by most states and countries, since it basically covers the medical costs and other liability issues you may cause in an accident. Most policies have a maximum amount they will pay, say $300,000, in case you injure someone or cause damage to someone. However, this is the cheapest because it provides no real protection for you, as the car owner.
Protecting Yourself From Some Things
If you want to protect yourself in case of an accident, you want to upgrade to a collision policy. This policy includes the liability policy mentioned above, but it will also pay to have your car repaired in case you get into an accident. Some collision policies also include things like rental cars while your car is in the shop, so that you can stay moving. This costs a bit more, but it does give you some protection if an accident happens.
Getting the Whole Package
If you want to protect yourself against most things that can happen in your car, you want a comprehensive policy. These policies include liability and collision coverage, but also include coverage against theft, damage, or other possible issues. If you’re worried your car may be stolen, or if a tree were to fall on it, the comprehensive policy is something you would want to look at. It is the most expensive choice, but you do get the most coverage and peace of mind.
Most companies also offer a variety of other insurance add-on options for you. For example, you could get a roadside assistance option, which can help you if you get a flat tire. This is very similar to AAA, and may be cheaper in some cases. Other policies offer pet protection plans, so if you are in an accident and your dog is riding along with you, your dog’s medical expenses will also be covered by the insurance policy.