How to get the Best Coverage at a Price You Can Afford
When you purchase low deductible auto insurance, you will have to decide on which elements you want and the amount of protection you need. To assist your decision, we've put together this helpful guide on the basic types of plans offered.
Liability: Protection for You and Others
- Liability - This is the portion of the plan that protects you from the covered damage your car does to others and other damage for which you are legally responsible. It will take care of the costs of your legal representation, bail bonds, and emergency services to others. To others, it will pay for damage to property, illness, bodily injury, medical bills, income loss, and death.
- Medical payments - pays for "reasonable and necessary" medical treatments for bodily injuries you sustain in a covered accident, regardless of fault. Such costs might include hospital stays, funeral expenses, ambulance rides, doctor fees, surgery, etc. If you have an adequate health plan, you might consider eliminating this part of the plan.
- Uninsured/underinsured motorist - this protects you from damage caused by motorists who are either underinsured or uninsured. This has two sub-categories: bodily injury and property damage. Keep in mind that uninsured/underinsured motorist property damage coverage is not available in all states, including New York.
Protection for Your Vehicle
- Collision - this is one area you might get away with skimping on if your car is older and doesn't have much cash value (or possibly from getting the lowest auto loan rates and therefore reduced overall pricing and/or shorter terms). This will pay to repair or replace your automobile for damages sustained in a covered accident. However, the insurer will only reimburse you up to the cash value of the vehicle, which might not be worth it for some drivers.
- Comprehensive - this pays for damage to your car not caused by a collision with another vehicle, such as weather damage, theft, vandalism, fire, etc.
Additional Things to Think About
Additional options will vary by the insurer who underwrites your policy. Typical additional coverages include towing and labor costs, tape/CD coverage, rental reimbursement, sound system, and roadside assistance coverage. Check out 5 ways to save on the next page.