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What is the Most Affordable Auto Insurance
Experts usually advise that you purchase auto insurance policies that you can afford. There is no use in buying an insurance policy you can’t afford top to pay. Regardless of what you buy, it would be of great benefit to understand how car insurance works, what coverages you need, and what you can skip. There is no way to know the most affordable auto insurance until you determine what coverage you need and how much insurance to buy. Instead of just Googleing “cheap car insurance near me,” give one of our local agents a call and have them quote a policy you can afford and need.
Auto insurance
Insurance will protect any damages you cause to others or damages caused to your car in case of an accident. In exchange for paying your insurance premium, your car insurance company promises to pay for damages you cause up to the amount of coverage you have purchased. Here are the coverages you can buy to protect you and your car:
Property Damage
Property Damage covers damages you cause to other people’s property, including other vehicles, street signs, etc. When you buy insurance, you select the maximum your insurance will cover. For example, if you buy $25,000 in insurance and total another car that costs $30,000, you have to pay $5,000 out of pocket.
Bodily Injury (BI)
Bodily injury will pay the medical bills for people not in your car. You will also select how much coverage you want. Typically BI will be listed as the amount covered per person and per accident. For example, if you buy $100K/$300K, your insurance will pay up to $100,000 in medical bills per person and $300,000 per accident.
Medical
Medical will cover smaller medical bills for cuts, scrapes, ambulance rides, etc. Often medical coverage will protect passengers in your car if they are not part of your household.
Uninsured/Underinsured Motorist Insurance (UMI) Property and BI
UMI will protect you, your passengers, and your car in case an uninsured driver hits you. For this to protect you, your insurance company will need to be able to verify the driver has no insurance. Therefore, it will not cover a hit and run. It will also protect you if the driver that hit has lower coverages than you. For instance, if you have 100/300 UMI, and the driver only has 25/50, your insurance will cover any bodily injuries over 25K up to 100K.
Comprehensive Insurance
This coverage will protect your car from damages not caused by an accident. In addition, comprehensive Insurance will cover theft, fire, and vandalism. For instance, if someone steals your catalytic converter, your insurance will pay to replace it. All you need to do is pay your deductible.
Collision Insurance
Collision insurance will cover damages to your car caused by accident. For instance, if you rear-end another vehicle, your insurance will pay for the damages you cause to the other car and the damages to your vehicle. You just have to pay your deductible.
Gap insurance
Comprehensive and collision insurance only covers up to the market value of your automobile, not what you paid for the car. For example, if you owe $20,000 on your car, but your car is worth $15,000, your insurance will pay you $15,000 if the car is totaled. GAP insurance will pay an additional $5,000 to cover the amount owed to the bank.
Bottom Line
If you have a car in any state besides New Hampshire, you must buy auto insurance before registering your vehicle. Talk to a local agent to make sure you buy the insurance required by your state.
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