Good Auto Insurance Plans
Get a Quote and Save up to 40%!*
Get a Quote and Save up to 40%!*
For many people, it seems the only thing they know about car insurance is that it is expensive, and they have to have it. Shelling out over $100 monthly when you have never been in an accident can seem like a complete waste of your hard earned money. The reverse though is when you get into a serious crash; your insurance policy will save you from a potential financial catastrophe. So knowing you need to be covered by the law, what are the good auto insurance plans that won’t break the bank and allow you adequate protection? First, let’s go over the policy basics and then look at ways you can save the next time you are ready to buy coverage.
Basic Liability Automobile Insurance
The most basic plan you can get to ensure your vehicle is liability protection. In nearly all states, this is the coverage that is mandatory by law and will protect you in the event you get into an accident that you are at fault for. Most insurance agents and professionals will break down liability policies into three numbers. Often, agents who have been dealing with insurance for years will throw out these numbers, assuming everyone knows what they are, but many don’t. Let’s say you are interested in getting a policy that’s 25/50/20.
The first number 25 represents $25,000 in bodily injury liability protection for the first person that was injured in an accident. The next number of 50 is $50,000 of bodily injury amount of coverage for all the persons injured in an incident you were at fault for. The third and the last number of 20 represents $20,000 of coverage for property damage that you caused. So you can see every good policy starts with liability protection because it is the law and important to have so you do not get sued and go bankrupt.
Many people who are on a super strict budget with little savings want only the state required minimum coverage. The first number in the example 25/50/20 is your state minimum amount that you need to get to be legal. Remember that every state sets their limits separately, so check your state insurance department online for the amounts in your area first, before you go shopping for automobile insurance. The next set of numbers depends on your financial wherewithal. If you have some assets, like a house and a car that is paid for, you should get at least $50,000 of liability protection.
In the event you are ruled responsible for an accident, a lawyer could sue you for a substantial amount of money. If your goals are too moderate, you may have to come up with the balance owed if a legal judgment is made, that is a lot higher than your liability amount. This is why it is smart to protect yourself with as much insurance as you can because accidents do happen and if you are at-fault, you need to be properly covered to keep your assets with you and not a law firm.
As the name implies, personal injury protection provides coverage for you and your family when medical injuries result from an automobile accident. Many people have adequate health insurance plans that cover them medically after any accident, including vehicle related. If this is your case, you do not need to worry about adding on PIP. However, if you are not insured, you need to think seriously about getting covered. Besides, P-I-P insurance is mandatory in some particular states.
Collision and Comprehensive Auto Insurance
If you want to upgrade your insurance, then adding collision or even comprehensive ins will work. If you hire your car or have an auto loan, then you will most certainly be required to carry a comprehensive policy. This is just the lien holders way of protecting the credit that they have made. In the event the vehicle is totaled or stolen, the lender will want to get their money back.
Collision insurance will cover you for just about anything that happens to your vehicle, resulting from another automobile. So if you backed into a telephone poll at 7-11, don’t worry, you will be covered. Comprehensive auto insurance, on the other hand, covers anything that is not related to an auto accident. This could be flooding damage to your vehicle, vandalism or even theft. When you finish paying off your car loan, you might want to re-consider this coverage, as it is expensive and if your car has depreciated substantially, you might be better off sticking the insurance premium money away into an investment account.
Consider Adding Uninsured Motorist Protection
Every good automobile insurance plan should have uninsured driver protection on their policy. Why might you ask? Well, the truth is, about 1 in 7 drivers on the road today carry no automobile insurance at all. This means if you are in an accident, there is a one in seven chance that the other party cannot reimburse you for your medical injuries as well as damage done to your car. Adding it to your policy is not too expensive, and it will add much peace of mind when you get behind the wheel.
Shop Around for the Best Rates Online
Most people know that the best insurance rates are found on-line. Getting web-based quotes is fast and free. At sites like good to go insurance, you can compare up to 10 insurance quotes in about 5 minutes. Shop for good auto insurance plans at “goodtogo” and you could save up to $550 with additional discounts.