Car Insurance Policies
When you search for auto insurance online, you’ll be presented with a variety of coverage options. Each option will provide a different level of coverage at a different price, based on your specific needs. It is smart to familiarize yourself with these general policies before you search for auto insurance quotes online.
Collision Coverage:
As the name implies, this type of auto insurance coverage will cover the costs associated with a vehicle collision. This coverage will pay for the costs to fix your vehicle, including engine and body work. In most cases, you will be required to pay your deductible and then the insurance company will cover the remainder of the costs. For example if you are in an accident, whether or not it is your fault, collision coverage will pay the cost to fix you car. If your deductible is $500 and the cost to fix your car is $2000, then the auto insurance company will pay $1500. This type of coverage is optional in most states, and available from all companies that offer auto insurance online.
Comprehensive Coverage:
Comprehensive coverage can be added to an auto insurance policy for individuals wanting to cover any damages to their car, not associated with an accident. Comprehensive coverage insures a vehicle for damages such as vandalism, theft, or fire, among others. For example if a tree limb falls on your car, you would file a claim under comprehensive coverage. This type of coverage is ideal for new vehicles or expensive vehicles. It is optional in the United States and is available from all companies that offer auto insurance quotes online. This is sometimes known as full-coverage.
Liability Coverage:
This coverage is required in nearly all fifty of the United States. It covers the damages to another driver and his/her vehicle in an accident that is your fault. Liability coverage will pay for medical costs as well as repairing vehicle damage. For example if you rear-end a vehicle at a stop-light, then the liability coverage will pay for the damage done to the car and driver that you rear-ended. Again, this type of coverage is mandatory in the United States and is available from companies that offer car insurance online.
Gap Insurance Coverage:
Gap Insurance coverage is ideal for people who have recently purchased a new car. Most insurance policies will only reimburse a customer for the market value of the vehicle. So if you are in an accident and the car you just purchased for $20k is totaled, but only has a market value of $15k, you will only receive $15k, even though you still owe $20k on the car. Gap Insurance will cover the actual value of the car. That means it will pay remaining amount you owe on the loan for your vehicle. This type of coverage is not offered by all companies, so be sure to ask the specific company when you search for car insurance quotes online.
There are other forms of car insurance policies that vary from company to company and from state to state. Be sure to ask specific questions to the company when you get car insurance quotes, so you are adequately covered.
