Save on Car Insurance with a Customized Policy
Get Cheaper Auto Insurance by Choosing Insurance Coverage Wisely
Oct 22, 2009
When it comes time to purchase car insurance, consumers should first determine which are the best car insurance companies. Once a list of reputable companies has been compiled, the search for the cheapest insurance can begin.
Rather than simply calling around for estimates, and settling on the lowest rates, the best way to save on car insurance is to only select the types of insurance that are truly needed.
Some of the most common types of coverage include:
Car Liability Insurance, Personal Injury Protection Insurance and Medical Payments (MedPay)
Car liability insurance covers the cost of personal legal liability for those involved in accidents. Liability insurance covers injury or damage caused by the accident. It covers only the cost of damage or injury the insured is responsible for legally. Liability insurance can also cover passengers injured in the accident. It's important to note that automobile liability insurance does not cover damage to the insured person's vehicle.
Personal injury coverage is legal in only some states. It is also referred to as "no-fault insurance." It covers medical and other expenses as a result of a car accident for both the driver of the vehicle as well as passengers, regardless of who is responsible for the accident. In some cases, personal injury protection will even cover the cost of lost wages due to injuries that resulted from a car accident.
Medical payments (known as MedPay or PIP) insurance covers what are considered to be reasonable and necessary medical costs that are a result of a car accident. Most states require either MedPay or PIP. There are pros and cons to each option and the type of medical insurance chosen is entirely up to the insured. In order to save on auto insurance, policy holders should never purchase both MedPay and PIP as they cover essentially the same things.
Those who have health insurance are not required to have MedPay or PIP and should therefore decline this type of medical insurance. Doing so saves policy holders a great deal of money on car insurance.
Uninsured or Underinsured Motorist (UM/UIM) and Comprehensive Car Insurance
In spite of the fact that car insurance is required by law, some motorist do not have car insurance or have minimal coverage. Uninsured or underinsured motorist policies provide coverage for expenses the other driver's insurance would have paid if he had insurance. In the case of underinsurance, the other driver's insurance company will pay what the policy allows and the agency of the fully insured motorist with picks up the tab for the remainder of the cost.
This type of car insurance generally pays for medical expenses, lost wages and in some select cases pain and suffering. However, it does not cover the cost of damage to the vehicle.
Comprehensive insurance covers the cost of damage or loss that are unrelated to a car accident. This includes natural disaster, fire, theft, and vandalism. There is generally a deductible for this type of insurance. A higher deductible is often the best option since that lowers the cost of the insurance premium.
Additional Car Insurance Options
There are a few other less common types of coverage including car insurance for custom parts and equipment, loan or lease payoff, and roadside assistance insurance. Depending on needs and other coverage available, these types of car insurance may not be needed.
The important thing to remember when it comes to saving money on car insurance is to avoid paying for unnecessary coverage. Taking a good look at everything written into the policies before agreeing to them is one of the best ways to get cheaper car insurance.
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