Different Auto Insurance Coverage Types
If this is one of the first times you've started looking for auto insurance quotes, then you know just how confusing it can be. Just like any other kind of insurance, you can get a full and complete package with all of the bells and whistles, or you could get a basic auto insurance package that meets your legal requirements and still gives you the peace of mind you need while you are driving. But if you aren't sure about the different kinds of auto insurance that are available, you may end up paying for bells and whistles that you will never use. With the costs of keeping a car on the road so high these days, learning all you can about the different auto insurance coverage types will go a long way towards ensuring the saving you need with car insurance.
Before you make any final decisions on auto insurance, the first thing you need to do is check with your state on your local requirements. Every state differs in various ways as far as what their requirements are for auto insurance. Where every state does not differ is with liability insurance. In every state in the United States, any person who would like to drive is required to have liability insurance as the very basic element of their car insurance package. In some states, this is the only requirement you need, but you can not drive in any state without it.
Liability insurance is the insurance that will cover a third party in the event of accident. In other words, you are the first party, the insurance company is the second party, and in the event of a collision, the other party is considered the third party. When you are a driver, you are required to hold liability insurance that will cover any other party in the event of an accident.
If you want coverage for yourself, then you must purchase collision insurance. Collision insurance is the auto insurance that will cover you in the event of a collision. In some cases you can reduce your premiums by getting a deductible on your collision coverage, and this will give you both affordable insurance and peace of mind. Some states require collision coverage and some do not.
Comprehensive coverage is often an option coverage and covers all other elements that will create theft or damage to your vehicle, that are not elements caused by a collision. In other words, comprehensive coverage is an insurance that covers a comprehensive list of things that could lead to financial loss or damage with your car.
When you are looking for cheap auto insurance quotes, check with your state for your requirements. The best way to save on auto insurance and to get peace of mind on the road is to only buy the insurance you need.