Most people these days who are looking for cheap insurance go to the Internet to do their homework, particularly when it comes to auto insurance. What many people don’t know is that it’s not all about the lowest price.
A great quote is definitely part of the equation when comparing auto insurance companies, but there are several other factors that play into assessing the best bargain for your auto insurance dollar.
Basic auto insurance coverage will insure against legal claims from third parties and pay for a certain amount of damage you cause, but it very often does not provide recoupment for your own damage repairs, medical bills and other incidental costs.
This will very often be the cheapest option and fulfills basic legal requirements for having a vehicle on the road, but it can leave you exposed when it comes to personal liability.
Comprehensive or “comp” coverage may insure you for several types of loss including:
- Glass Damage
- Animal Strike
- Natural Disasters
This kind of coverage does not include damage resulting from collision. That is its own kind of insurance and is usually packaged separately from comp coverage with different costs.
Collision coverage insures you against costs incurred in a collision and typically applies to all vehicles property, and objects involved.
Personal Injury Protection
Personal injury protection, or PIP, covers medical expenses stemming from an auto accident. It may also cover many other things like lost wages and physical therapy, but these are often elective additions to basic PIP coverage.
In addition to deciding what kind of insurance you will need from the choices above, you will have to decide the cost of your deductible. For example, if your deductible is $500 and your insurance claim totals $5,000, you will be responsible for the first $500 before your insurance covers the remaining $4,500.
This is the amount you will pay out of pocket before your insurance coverage begins and will have a significant impact on your monthly insurance bill.
To find the best cheap insurance go online and search several carriers to find out how they compare. You might be surprised to find how much prices can vary among auto insurance companies.