Car insurance basics Property coverage pays for damage or theft of the car, liability coverage pays for the policyholder's legal liability to others for bodily injury or property damage, medical coverage pays for the cost of treating injuries, rehabilitation, and sometimes lost wages and funeral expenses. Today, auto insurance liability and property damage (PD) coverage is a legal requirement in most states. BI & PD) Most people understand that they need BI & PD, but they have no idea how to determine how much coverage they need. Here you'll find your name, a statement of the policy period during which you're covered, and the amount of the premium you pay.
The description page also includes a description of the insurance coverage provided and indicates the maximum dollar limit that the insurer will pay for a claim under each coverage. Most states have statutory minimums on how much liability coverage you should have. It's often a good idea to carry more than you need to reduce the chances of having to pay out of pocket later on. Collision coverage helps cover the costs of repairing your vehicle regardless of fault.
The collision doesn't cover if you hit an animal or if your car breaks down because it's too old and unreliable. Comprehensive coverage is typically sold along with collision coverage. Think of them as peanut butter and chocolate. Save money on car insurance by following the speed limit, keeping your credit score high, choosing your car carefully, and making sure you get all the car insurance discounts you qualify for.
A great starting point for determining the right car insurance coverage for your family is to meet with your local auto insurance agent. And while car insurance is one of the most common types of insurance out there, there are a lot of disgusting and confusing terms that go along with it.