Car insurance provides financial and legal protection in case of damages or injuries that result from the use of a car or a motorcycle. However, this protection is only as good as the type of coverage you buy. Finding the right car insurance coverage from the right company will ensure sufficient support and protection when you need it most.
Choosing the Right Car Insurance Company
Top car insurance companies, like Insurance Doctor,have built their reputation through high quality support, value-added services, financial stability and reliability. Most car owners would focus on cheap care insurance but not every policy that comes with a low price tag may be a good deal in the end. In many cases, you do get what you pay for, so it is best to do your research before making a decision.
When choosing an auto and motorcycle insurance company, consider these factors:
Insurance companies that offer timely and trustworthy support are often strongly promoted by their own clients, so consider companies that receive the highest rating when it comes to customer satisfaction. Some websites publish reports and reviews online and it is a good idea to check out complaint ratios of companies you are considering. A car insurance company should also have a license to sell insurance by the state where it operates. This information is usually available at the Department of Insurance online site.
Another useful resource to determine a company’s reputation is the Better Business Bureau. The BBB is a non-profit organization that collects business reviews and provides the information online for customers to use as reference. Businesses are ranked A to F, with A being the highest rank. The website also provides other useful information, including when the company started operations, types and number of complaints they received for certain products and services, and whether or not these complaints were resolved.
An insurance company should be able to pay for expenses related to your liability as covered by your policy. It should be able to provide you with financial support when and if you need it. Financial stability is a mark of a well-managed and reliable company. If you need information, AM Best and JD Power are some of the websites you can use as references.
Top car insurance companies may offer rewards programs and discounts, particularly to drivers who have excellent driving records. Rewards may take the form of lower premiums, allowing car owners to save hundreds of dollars a year in payments. There are even discounts for drivers who install anti-theft and safety devices on their vehicles. There are also potential savings offered by multi-line coverage policies. Multi-line coverage refer to bundled insurance products that may be purchased at a lower price. For example, buying an auto insurance and a home insurance policy may save you money if you purchase both from the same company.
Different Types of Auto Insurance Coverage
Liability insurance provides protection to the person who suffers from injury as a result of a car accident wherein the driver is at fault. It will also pay for property damage. When you purchase auto insurance liability coverage, it is usually available in split limits that come in varying figures. Each figure represents the financial limit the insurance will pay. If you buy a policy with a 25/50/10 limit, for example, the coverage will provide a maximum of $25,000 for bodily injury for an individual, a maximum of $50,000 for all individuals injured, and a maximum of $10,000 for property damage.
To determine how much liability coverage you need to purchase, consider two factors: 1) minimum coverage amount required by your state of residence, and 2) how much you are able to pay. Generally, it is a good idea to purchase liability insurance that is more than the minimum requirement of the state where you reside to ensure sufficient coverage.
Collision coverage pays for repairs to the policyholder’s car in case of an accident. If the car is completely damaged or if the cost of repair is higher than the insurance can cover, the policy will pay for the car’s value instead.
Comprehensive coverage pays for loss or repairs that result from incidents not considered as covered accidents, such as damage from bad weather, loss due to theft or even damage that result from a car hitting a large animal. It is more expensive but will provide protection when needed.
Personal Injury Protection
PIP provides an extra layer of protection that will pay for medical bills of passengers who are injured in a car accident, regardless of who is at fault.
Uninsured and Underinsured Motorist Protection
Not all drivers carry insurance. If they do have insurance, they may carry one with a low coverage. This type of policy will help cover some of the expenses in case of damage or injury.