Auto insurance quotes can be confusing to read and fully understand. With a little background knowledge regarding the structure of your auto insurance policy, reading and comparing quotes should be easier.
An auto insurance policy provides coverage to you in two distinct ways. It first protects you from having to pay for damage to your own vehicle, but it also pays someone else on your behalf if you injure someone or damage someone’s property. Examples of damage caused to your car that might be covered include collision, theft, or fire damage.
The second way that an insurance policy protects you is to offer financial protection from claims for damage or injury that you cause to others. This section is called the liability section and pays for property damage and bodily injury.
A third section will provide medical payments coverage for you, or the people in your car.
Finally, there is a section regarding uninsured and underinsured motorists that may cause an accident with you. This section will pay for injuries to you if the at fault driver has little or no insurance.
Each state has their own laws regarding these sections. Some are required and some are not, and there are often minimum limits that must be maintained for the liability section of coverage.
In your auto insurance quote, you will find a section relating to damage to your car, and a dollar amount assigned to each item. When comparing auto insurance quotes, make sure there are line-by-line comparisons. You will find that there is a dollar amount of premium assigned each line for collision, comprehensive, towing and/or rental depending on which coverage you have chosen.
Under the liability section, you will find also that there is a dollar amount assigned to each line. Under the property damage liability section the cost will be shown in premium dollars, and the same for the bodily injury liability part, which is usually expressed as an overall limit and a per-person limit.
As you view your auto insurance quote, all of the requested coverage will be listed, usually on the left, with the corresponding premium amount for each listed on the right. These are then added together for your total premium.
If you qualify for discounts, these will be listed on your policy as well. For example, your auto insurance quote may contain discounts relating to car safety such as passive restraints, anti-lock brakes, or anti-theft devices. Discounts are also available if you have more than one policy with an insurer. For example, if your homeowner's insurance and your auto insurance policy are with the same company, they will most often provide a discount. Young students, senior adults, retired persons, new car owners, economy car owners, or anyone who has taken a driver’s safety course may also qualify for discounts with certain insurers.
With so many discount opportunities available, it pays to ask your agent or broker whether you qualify for any of them. It also pays to carefully compare each line of coverage between two or more auto insurance quotes. If one of the auto insurance quotes is lower, you may find that the coverage limits are different as well, which may mean that you are getting less coverage.
As with any purchase it pays to do your research, and comparison shop with qualified agents or brokers.
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