ABC's of an Auto Policy

When you compare car insurance online, you will have to be familiar with the basics of an auto policy. Here we'll explain the basic coverages of a standard policy.

Liability Coverage

Liability coverage should definitely be a priority as you compare car insurance online, as most states require certain levels of this coverage to drive legally. Most policies come with two types of liability coverage: bodily injury and property damage. Bodily injury coverage will protect you in the event that you harm or kill someone while operating your vehicle. It will also cover your legal defense if another party in the accident files a lawsuit against you. Property damage liability protects you if your vehicle damages someone else's property. Again, it also provides for your legal defense if you are sued by another party in the accident. When you compare car insurance online, it's a good idea to select a policy that offers adequate levels of both of these coverages.

Medical Payments

Also called personal injury protection, medical payments coverage will pay for the medical expenses of the injured driver and passengers in your vehicle.

Collision Coverage

Collision pays for the cost to replace or repair your vehicle when it hits or is hit by another vehicle or object. As you compare car insurance online, keep in mind that this coverage will only reimburse you for up to the cash value of your vehicle. If you drive an older car, this coverage might not be worth the increase in your premiums.

Comprehensive Coverage

Comprehensive pays for most damage to your car not resulting from a collision. For instance, most comprehensive coverages will pay for fire, theft, vandalism, animal, or falling object damage.

Uninsured/Underinsured Motorist Coverage

Considering the climbing number of uninsured drivers on the road, you might want to keep this coverage in mind when you compare car insurance online. This coverage will pay for injuries caused by an uninsured driver in an accident that is not your fault. Some states allow the coverage to also pay for property damaged caused by an uninsured motorist.

Still not sure about car insurance and which to use? You can probably benefit from reading some of our frequently asked questions.