McAfee Secure sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Auto Insurance Policies

There are many choices when it comes to auto insurance policies, and your decisions will have a big impact on your rates. Some of the factors include your age, driving record, gender, and type of car. One of the biggest variables for auto insurance policies is the actual type of policy you select. To help you understand the different coverages available, we have provided some basic information about of auto insurance policies.

Minimum Coverage Amounts on Auto Insurance Policies
Each state has different minimum auto insurance policies coverage requirements, usually expressed as three numbers. For example, California is 15/30/5, which means that in an accident, each injured person would receive a maximum of $15,000, but to a maximum of $30,000 per accident. So if you have 3 injured people who each need $15,000 or more, or even if one person needed more than $15,000, you could be sued for any remaining amounts. The third number of the auto insurance policies coverage is that there is a maximum of $5,000 allowed for property damages.

The exact amounts of auto insurance policies vary for each state, and you will want to keep in mind the likely damages you could incur if you are at fault in an accident. For example, you can easily surpass $5,000 in property damages just considering the other driver's car. If you can afford more auto insurance policies coverage and your state's limits are low, you might consider carrying more than the absolute minimum required, or you could be liable for any additional expenses.

Roadside Assistance on Auto Insurance Policies
Most insurance companies offer auto insurance policies that include optional emergency roadside service. Each plan is different, but they commonly cover flat tires, locksmith services, jump-starting your car, tow expenses, and running out of gas. Sometimes there is bond money if you are arrested due to a traffic violation. Other auto insurance policies may include benefits for lodging or meals if you are away from home. Usually the cost for this auto insurance policies coverage is small, so it typically makes sense to include this coverage. The exception would be if you already have this type of protection through an auto club or a new car introductory coverage.

Liability Coverage on Auto Insurance Policies
This is required by each state, in varying amounts as described above. This coverage pays for damages that you cause in an at-fault accident. It does not cover your own car or injuries, just the other party's car, property, or injuries.

Collision Insurance for your Auto Insurance Policies
This coverage pays for any damages to your car, or for your injuries, if you are responsible for an accident. Typically there is a deductible, which is determined when you originally purchased the policy. If you have a higher deductible, it may lower your premiums. Collision auto insurance policies may also covers accidents that aren't your fault, if the other driver was uninsured. However, many states and auto insurance policies classify this as "uninsured motorist coverage," and it may be mandatory.

Comprehensive Coverage for your Auto Insurance Policies
This policy will cover non-accident damages, such as if your car is stolen or vandalized, a tree falls on it, hail damage, flooding, and other natural acts. There is usually a deductible, and this coverage is optional. It also covers damage caused if you hit an animal, which is not covered by collision coverage. Comprehensive auto insurance policies also repairs or replaces windshields cracked from rocks and other debris, and many offer reduced or waived deductibles for this coverage.

Medical Coverage on your Auto Insurance Policies
This covers the medical expenses of any passengers in your car, and there is usually no deductible. Most insurers encourage this coverage to be used if there is an accident, as it can help reduce the likelihood that an injured passenger will sue the responsible driver.

Personal Injury Protection (PIP)
This covers incidental expenses not included in other auto insurance policies, such as lost wages or childcare expenses incurred as a result of an accident. For example, if you are injured and unable to work, your lost wages would only be covered if you had PIP coverage.

GAP Insurance
If you've just bought a new car, you'll be carrying full coverage, probably required by your lender. However, even full coverage might not provide full replacement value of a new car, as cars depreciate 20 to 30 percent immediately. Without GAP (Guaranteed Auto Protection) coverage, your policy may just provide the depreciated value, which won't be enough to replace the car. GAP coverage means you will get full replacement value.

Now that you know the basic coverage types, you are ready to begin comparison shopping for auto insurance policies. Let help you compare car insurance premiums, deductibles, and coverage amounts so you can get the right auto insurance policies for you.


FREE Quotes, Multiple Insurers

Zip Code