Standard car insurance policies include six types of accident coverage. Understanding these components can help you design the best low cost car insurance plan for your needs.
1. Bodily injury liability insurance pays for injuries that the policyholder or another approved driver causes to others. State minimums for this category are as low as $10,000, but insurance companies and consumer advisors advise purchasing more than the minimum coverage; medical bills can easily reach $100,000 per person.
2. Personal injury protection pays for injuries to the driver and passengers in the policyholder’s car.
3. Property damage liability insurance pays for damage that the policyholder or another approved driver causes to others’ vehicles and other property, such as road signs and landscaped gardens.
4. Collision insurance pays for damage to the policyholder’s car when the car flips over, rides over potholes, or collides with another vehicle or object. Collision insurance includes a deductible. It may be safest to reduce spending in this category to get a low cost car insurance plan.
5. Comprehensive coverage pays for damage to the policyholder’s car resulting from something other than a collision, such as a riot, natural disaster, or theft. As with collision insurance, this is a safer area in which to cut expenses.
6. Uninsured/underinsured motorist insurance protects the policyholder against uninsured and underinsured drivers as well as hit-and-run drivers.
No related posts.