How to Choose the Best Auto Insurance

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Happy young man with new carDriving a car is an enormous responsibility. While it may seem like an easy operation, we often don’t think about how dangerous it actually is until we hear about, see, or are in an accident. Whether a collision is big or small, the expenses may be more than you can afford, which is why auto insurance is beneficial. Not only is car insurance good for your financial security and peace of mind, but also it’s necessary. Because auto insurance is required in most states, it is helpful to understand what insurance you need to acquire, and additional coverage options.

The Basics of Auto Insurance

Accidents happen when you least expect it, which is why insurance is a necessity. To protect yourself and others, finding the best type of car insurance is important. When someone hits you or vice versa, injuries and damages to everyone involved will be expensive. With overwhelming emotional or physical trauma of an accident, being covered by insurance will help reduce some of the stress and financial burden.

The payment you make for your auto insurance is called a premium. Depending on your preference or the insurance company you can make this payment monthly, annually, quarterly, etc. Before you look into car insurance, its important to know what type of coverage is available and tips to help lower the costs.

What auto insurance covers:

Coverage for Medical Expenses

This takes care of medical bills if you, or others involved in the accident are injured and need medical attention.

Bodily Injury Liability

This type of coverage will pay for any injuries that occur to you or others that are involved in the accident. This can include:

  • Medical bills
  • Lost wages
  • Pain and suffering

Property Damage Liability

This type of insurance will cover costs of damage to your car or the other person’s car. It can also include court costs.

Coverage for Uninsured Motorists

If you are involved in an accident with someone who is uninsured, your insurance will cover the cost of damage they caused.

Collision Coverage

This insurance covers damage costs to any vehicle that was involved in a collision.

Comprehensive Coverage

If your car has damage caused by events other than a collision such as fire, hail, flood, theft or vandalism, this type of insurance will cover the cost.

Factors that Determine Insurance Costs

  • The distance you drive – Those who drive less in a year will often receive a lower premium.
  • Age and sex – Younger drivers, especially males under 25 will have higher insurance because of statistics that determine they are higher risk.
  • A good driver will pay much less than a driver who has a record of tickets or accidents.
  • Those who live in a populous city will pay much more than someone who lives in a small town.
  • The type of car you drive will determine the cost – Insurance premiums generally reflect the value of the car. This is to protect the cost of the car in case it is stolen or totaled. So choosing to drive a truck, sedan, or sports car will greatly affect the cost of your premium.

Because there are many types of insurance, speaking with a knowledgeable insurance agent will help you decide what you need. While the state law may require a certain amount of coverage, you may want to either pay the minimum or invest in a higher premium if you can afford it and have a more expensive car.


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