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Compare Car Insurance

Most people carry car insurance that is either inappropriate for their needs or that is too expensive. When you begin to compare car insurance, you have to keep a few things in mind. First, you should consider your insurance needs, especially in comparison with your state's minimum levels of car insurance. Second, you need to find the best deal on your car insurance. This is why it is important to compare car insurance. Every insurer determines their premiums and policies differently, which means that shopping around and comparing quotes is a great way to find a wonderful insurance package at an affordable price. This guide will walk you through the terms and points of comparison that you need to know about when you are shopping for your car insurance.

Most people overpay on their premiums before deciding to comparer car insurance rates. This is because they do not shop for long enough, instead going with an insurer whose commercial they saw on television, or finding one through a recommendation from a friend. In order to make a smart, informed decision when you compare car insurance, it is important that you know the meaning of all of the terms.

Car Insurance Defined

At its most basic level, comparing car insurance is supposed to protect you against extremely high losses. Most people can afford to pay a modest premium every month, but almost nobody could pay for the medical bills or property damage that would result from an accident. Because accidents have a low rate of occurrence and will bankrupt most drivers, insurance is meant to be a collectivized pool of money that can protect all drivers against the financial liability involved with an accident. However, in practice, there are very good insurance policies and insurance policies that are not very useful. As such, you need to compare car insurance.

Bodily Injury Protection 

Also commonly known as "liability" insurance, this is one of the most basic aspects of car insurance. Bodily injury liability protection is meant to pay the medical and/or funeral bills, including rehabilitation costs, of the passengers in your vehicle and any pedestrians that are involved in an accident that is caused by you. Keep note of this, as most insurance policies will not pay out on this protection if the accident is caused by somebody else. Most states require that you buy at the minimum $20,000 worth of liability protection per injured person, and at least $50,000 worth of total liability for all people involved in the accident. Unfortunately, these amounts are much lower than the average cost involved with a catastrophic accident, especially since rewards awarded by the legal system come out of this protection.

Most insurers have wildly different manners of dealing with buying extra bodily injury protection. When you compare car insurance, make sure to note how much extra each individual insurer is charging for extra liability protection. A good ballpark for buying extra liability protection is to be in the ballpark of buying $50,000 to $150,000 of protection per person, and $150,000 to $300,000 of protection for an accident. These may seem to be extremely high amounts, but the costs involved with trauma related medicine will shock you.

Property Damage Protection

This is another aspect of car insurance that your state will require you to have. Bodily injury liability protection does not cover the costs of damage to your or another person's car. This form of protection also does not cover theft of your car or weather related damage. It is meant only to cover you in the case of a collision. Because most collisions involve property damage, this protection also covers damage to other people's property. However, you are generally liable for property damage you cause with your automobile. Because of this, you should shop around and buy at least $50,000 worth of property damage protection. As with bodily injury protection, insurers can vary by a lot in how they determine the cost of property damage protection.

Uninsured Motorist Coverage

This is a widely misunderstood form of car insurance coverage, particularly since only some states require you to carry it. In short, it is insurance provided that will cover bodily injuries to you and your passengers in case somebody with no insurance causes an accident with your vehicle. Many people argue that this form of insurance is even more important than bodily insurance liability protection, especially for people who are safe drivers. You should buy as much uninsured motorist coverage as you buy bodily injury coverage. Again, most insurers handle the pricing of this coverage in a different manner, so make sure you compare car insurance.

Personal Injury Protection

This is a form of insurance protection that is required in a few states. Basically, this type of protection will pay for lost wages and nursing care you receive as a result of an automobile accident. Whether or not you should buy this policy depends on your health insurance and employer's policies regarding disability pay. However, some insurers charge a negligible amount for this, so you may wish to purchase it anyway.

Collision Coverage

Somewhat similar to property damage protection, this type of coverage will pay for your car's replacement or repair costs regardless of who was at fault in the accident. It can be quite expensive to carry depending on your insurer and your state's laws. When shopping around, compare the annual cost of collision coverage to your car's fair market value. If the coverage costs a lot in relation to your car it may not be worth it. This is because collision coverage only covers the market value of your automobile.

Comprehensive Coverage

This is somewhat similar to collision coverage (so similar that some insurers lump them together). Comprehensive coverage will pay for your car in case it is stolen or damaged by something other than an accident. Comprehensive coverage can cost a lot in areas that are prone to hurricanes or tornadoes, or if you live in high crime areas without a garage. As with collision protection, you should compare the cost of comprehensive coverage with the value of your car, since an insurer will only reimburse you for the market value of your car.


This is the (usually annual) amount that you must pay out of pocket before your insurance will pay a single dollar. In many cases, the higher your deductible, the lower your monthly premium. Every insurer calculates the cost of your premium compared to your deductible level differently, so it does literally pay to compare car insurance. Ideally, you want to shop around for a deductible that you are confident would not damage your finances while maintaining as low a monthly premium as possible. 

Finding Cheaper Rates

It should go without saying that comparing car insurance quotes is absolutely vital. If you know what you are buying, you will be able to find the best car insurance for you at the best rate. However, there are a few things that you may be able to specify to your insurance company that may get you a lower rate.

Clean Driving Record

If you have few traffic violations and very few or no accidents on your record, then it is important that you let your insurer know this when you compare car insurance. Many insurers provide a significant discount for safe drivers. However, most drivers do not know that an insurer will not simply give you a lower premium as a courtesy. Instead, you should make it clear that you are a safe driver and you intend to take your business to an insurer who will provide you a discount

Vehicle Safety Features

Depending on the safety features of your vehicle, you can receive sizable discounts on your monthly premium which is why it's so important to compare car insurance policieis. These features include things like anti lock brakes, airbags, and car alarms. Some insurers will give you a discount while others may not, so it is important that you compare car insurance providers.

If you equip yourself with a lot of knowledge and compare car insurance quotes, you will be able to get the absolute best deal.



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