There are a variety of parts that come with a standard auto insurance policy. Some parts are optional that you may select during the quote process, while others come standard with every policy. For example, liability coverage is required in most states. This covers a specific amount of loss others endure if you happen to be the negligent driver in an auto accident. The best thing to do before comparing insurance quotes is determine how much coverage and what type of coverage you need.
The most common liability policy is offered as a split limit policy with coverage for (BI) bodily injury and (PD) property damage. A state minimum liability limit may be shown as 20/40/25. This would provide a total of $20k for one person’s injury, $40k for all injuries and up to $25,000 for damages caused to the other person’s vehicle.
Uninsured and under-insured motorist coverage may be required in some states and not in others. To find out more about required coverage refer to your local department of insurance website or a local agent. This coverage will help if someone negligently injures you or your passengers and has either no insurance or not enough insurance to pay the bills. This happens often and will continue happening more and more as the price of health care rise. Also, many states have not raised the liability requirement for several years.
Unless you are leasing or making payments on a vehicle, collision and comprehensive coverage is an optional coverage. Regardless of fault, collision coverage can help pay for damages done to your vehicle in the event of an auto accident. Comprehensive coverage pays for damages to your car that occur from something else other than an accident, such as vandalism or dents caused by a hail storm.
Emergency roadside service will help pay for the price of towing your vehicle if you ever break down while driving. If you’re in an accident and your vehicle needs to be put in the shop, car rental expense coverage will provide you with transportation for a specified number of days while your vehicle is repaired. These both are optional coverage options offered by most car insurance companies.
At times you’ll find the current market value of your car is much less than what you owe on it. In this case if you were in an accident you may receive less than what you still owe on the vehicle. Gap coverage will pay this difference to the lender for cases such as this.
For additional coverage on custom parts and equipment, you should always ask your agent about endorsements so you can be sure everything is covered. Rims can cost as much as $5,000 – sometimes more. Additional endorsements are needed to protect you from loss associated with custom aftermarket parts.
When confused about which coverage is best for you or how much coverage to buy, talk with a local agent. She will know the current laws set in your state and can help you decide on the best coverage for you.