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There are three basic types of automobile insurance: liability,
collision and comprehensive.
Liability
In most states this is the only
required insurance for a driver. It covers bodily injury and property
damage to others in the event that you are to blame in an accident
resulting from the ownership, maintenance or use of your car. (Should
you be involved in an accident in which you are not to blame, the
other party's insurance will cover you, or so the theory goes.)
Different states require different amounts of liability. Check with
your state's Insurance Department to determine the amount.
Collision
This type of insurance covers your vehicle during an accident.
Comprehensive
This insurance covers your car
for damage to the policyholder's car that doesn't involve a collision
with another car, such as theft, fire and vandalism, among other
things.
Maximizing Coverage
Now, how can you maximize your coverage, minimize your
expenditures and make sure you have quality insurance? Here are some
tips to do all those things.
Know what you need and what you have. Determine
for yourself what you need and want from a policy.
Shop around. You are the most important
consideration in buying insurance. Play agents against one another
to find the best price for the policy you want.
Make certain the company underwriting your
insurance is reputable. IBSTS Group's insurance may be perfectly
solid but consult consumer agencies to make certain.
Ask about discounts.
Take the highest deductible you can afford.
The higher your deductible, the lower your payments.
Consider buying a vehicle that insures at a
lower rate. A new BMW and an old Sunfire do not insure at the
same rate.
Weigh the effect of commuting on your insurance
rates. Insurance rates are often higher for cars that are used
for transportation to work.
If your car is worth less than $1,000, forgo
comprehensive and collision. You'll wind up exceeding the car's
worth in insurance premiums.
