The Only Guide To Auto Insurance You Will Ever Need!

It’s no secret that we Americans live in a litigious society. People are always suing each other over something every day. To protect against threats of litigation, we pay for insurance cover. The job of an insurance policy is to cover against any financial loss. Some policies will pay out irrespective of who’s at fault.

When you drive a car on America’s public roads, you need to have insurance cover for those reasons. If you drove into someone’s car by accident, could you afford to pay for repair and compensation costs yourself? No, I didn’t think so! That’s one reason auto insurance makes sense for drivers.

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In this handy guide, you will learn about auto insurance and how to get the best deal for your specific circumstances.

What liability limits should you get with your auto insurance?

The thing about auto insurance is that the lowest amount of cover you need will depend on your state’s requirements. In the United States, all auto insurance requirements are set at a state level.

That is in contrast to other countries like the United Kingdom, for instance, where they are set at a national level.

One thing to bear in mind is that each state has different minimum liability limits. In other words, claimants should receive a specific minimum amount of cash in each accident.

For example, if you had an accident and you were at fault:

  • California has a minimum liability of “15/30/5”;
  • The numbers in each of the three sections represents minimum liability in thousands of dollars;
  • 15 = $15,000 for one person injured;
  • 30 = $30,000 total injury claims. So if two people got injured, each person would get a minimum of $15,000;
  • 5 = $5,000 for property damage.

If more than three people got injured, whoever files first will get entitled to the $30,000. If the accident was your fault, it’s likely you will get sued for the rest of the money.

In reality, people that get auto insurance choose higher coverage amounts. With the California example, people may choose cover that pays up to $100,000 for one injured person. And a total claim limit of $300,000. Property damage cover might also have a limit of $100,000 per accident.

What else should you get?

Auto insurance companies sell other policy “add-ons” that are useful to drivers. Some add-ons are compulsory in certain states, whereas they might be optional in others. Here are some of the most-popular add-ons that you should consider for your policy:

Uninsured and underinsured motorists

One problem the United States struggles with in certain areas is people that drive with no insurance, or poor levels of cover.

There are many reasons why that is the case. The driver might not be aware that they’ve got no insurance. Or there might be a criminal element involved, such as the car getting stolen from its owner.

If such a driver crashes into your car, this specific cover will come in handy. It will pay for repairs to your property. And it will also cover your injury claims too. If their insurance doesn’t cover your claim in total, this add-on can cover the difference.


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Medical costs

Let’s that that you have an accident with someone, and some people in your car got injured. You can buy an add-on for your auto insurance policy that can cover medical costs that were the result of the accident.

The good thing about this add-on is that it will cover those medical costs, regardless of who was to blame for the accident.

Examples of the medical costs this can cover include:

  • Doctor and hospital visits;
  • Surgery and fees for x-rays and medicine;
  • Ambulance fees;
  • Nursing care.

As you can see, it can cover a wide range of medical costs.

Collision cover

So far we have talked about what can get covered for injury and property claims. But what happens if you drive into someone car? Your insurance will pay for any damage to their car; so who pays for yours?

The purpose of collision cover is to pay for the repair costs to your car. If you drive into someone’s car, you will get covered. You will also get covered if your car’s parked up and someone drives into it.

If your car will cost too much to repair, your auto insurance company will give you some money towards a replacement instead.

Collision cover is quite useful for obvious reasons. But if you need to use it, you will have to pay a deductible. Ben from Motorline Direct says the deductible you pay might be anything up to $1,000.

If you want a lower deductible, you will have to pay a higher insurance cost.

Comprehensive cover

We all know that our cars can sustain damage even if we are not driving them! There are many ways that our cars can get damaged, such as:

  • Through acts of vandalism;
  • Natural events like tornadoes;
  • Animal damage.

Comprehensive cover will ensure that your car gets protected in any of those events and more. So if a bear charges towards your car and scrapes the paintwork, you don’t have to worry if the bear has insurance cover or not.

Although at that point of time, your primary concern might be how to get away from the bear in the first place!

How to get cheap auto insurance

Do you need to buy auto insurance soon? If so, it’s worth finding ways to get cheaper cover for obvious reasons! Here are a couple of tips that will help you:

  • Compare quotes. Contact different auto insurers in your state and request quotes from the major ones;
  • Make insurers compete for your business. Auto insurers will usually ask what the best quote you’ve had so far is.

I hope that you have found today’s guide on auto insurance useful today. Thanks for stopping by! Feel free to post up in the comments section if you’d like to start a discussion on auto insurance.

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