When you are shopping for car insurance, you need to be aware of the different types of coverage that are available. The types of coverage you should choose depend on your driving history and the type of vehicle you own. You may want to select a comprehensive or liability policy, which covers damage to other people’s vehicles in the event of an accident. Generally, liability coverage is required in most states. Comprehensive coverage can also protect you from natural disasters.
Some insurance companies offer discounts for certain characteristics of their customers. For example, if you have an anti-lock braking system, most insurers will automatically apply a discount to your premium. These discounts can range anywhere from five to ten percent of the premium you pay, and the savings are substantial. Depending on the type of ABS on your vehicle, you could save as much as $100 a year on your car insurance.
Auto liability coverage covers property damage and bodily injury. This coverage kicks in if you cause an accident, and it pays for other drivers’ medical bills. Liability insurance also protects you in the event of a lawsuit. Comprehensive coverage is an added bonus, because it protects your car from damage caused by events outside of your control.
Some states require bodily injury liability coverage for car owners. This type of coverage will reimburse you for any medical expenses you incur as a result of an accident, regardless of who is at fault. Collision coverage will pay for the damage you cause to other vehicles, regardless of whether you are at fault.