Liability Insurance
Liability insurance is required by most states' laws, although the minimum amount of coverage required varies from state to state. Understanding those limits and what this coverage entails is very necessary in making an auto insurance comparison. Generally this type of coverage will be broken down to look something like: $25,000/$50,000/$25,000. This breakdown stands for: bodily injury liability maximum per person in one accident/ bodily injury liability maximum per accident counting all people involved/ property damage liability maximum.
Using the numbers above for example, if a person is in an accident in which they are found at fault, their insurance will only cover up to those amounts. So if that person is found at fault and the necessary amounts exceed his or her coverage limits, they will likely be held responsible to pay the additional amount out of pocket.
Uninsured/Underinsured Motorist Coverage
There is a type of insurance available to help protect motorists from uninsured or underinsured drivers. This type of coverage varies depending on the state but can offer additional protection to the insured, generally for a nominal fee.
Comprehensive and Collision Coverage
Also known as full coverage, comprehensive and collision insurance insure a persons' car in the event they are at fault during an accident or other types of damage occur to their vehicle. An understanding of this type of coverage is essential in order to make an effective auto insurance comparison, as it can impact pricing greatly.
This coverage will appear in a format similar to $500/$500. This means that in the event something happens to your vehicle that is covered by your comprehensive or collision insurance, you will have to pay $500 per incident out of pocket and the insurance company will cover the rest.
Rental Reimbursement and Roadside Assistance
Understanding optional coverage such as rental reimbursement and roadside assistance (or towing coverage) can make a large difference when making an auto insurance comparison. Rental car reimbursement will cover a certain amount (depending on the coverage selected) per day of rental car charges should your vehicle become unavailable for a certain period of time due to an accident.
Roadside assistance coverage allows the insured to receive a variety of emergency services (depending on the plan) for free or a reduced charge. A person having his or her car towed is one example of this type of coverage.
Medical Coverage
Required and optional medical coverage varies greatly from state to state. Some states require insured to carry no-fault medical which covers them in the event of an accident, regardless of fault. Other states do not have this provision so insured are able to carry a certain amount, depending on their state laws and needs. Understanding medical coverage is essential to make an auto insurance comparison as it can cause rates to vary greatly.
