Looking For A New Auto Insurance Policy? – How To Decide What Coverage You Need

24 April of 2015

It is wise to have car insurance above the state’s minimum coverage requirement. With quotes available online, liikluskindlustus has never been easier to obtain. To get the best quotes, you need to know what coverage is necessary. You may be unaware of this fact especially, when you have decided to buy insurance on the internet. Therefore it is important to understand each policy and its usefulness to make an informed decision.

Some Popular Policies for Car Insurance

  • Liability

Under liability policy, if an accident is caused due to your fault or negligence the insurance company covers you. So set limit as high as you can afford, because accident claims, legal fees, repairs and medical expenses of the 3rd person involved in the accident is very high. 

  • Collision and Comprehensive 

Collision coverage pays for your car repairs and in case your vehicle is totalled in an accident then the car value will be paid. In case you own an old car then securing collision coverage is not worthy. If repairs were to exceed price of your vehicle they will only pay on road price for your car. So basically, given its high premiums this policy is useful only if you have a brand new or a fairly expensive car you can start over in case of its loss.

  • Comprehensive 

As in Comprehensive policy it takes care of other circumstances such as weather damage, stealing or animal damages.  Liability and collision policies cover only accidents but comprehensive coverage protects you from situations. It is an expensive coverage but tracking devices and alarm systems can get you an affordable deal.

  • Personal Injuries Protection (PIP) 

In case of accidents, medical costs can easily exceed your budget. PIP takes care fo all your medical costs along with your passengers. While naturally, it is a very useful coverage but it may not be of much use if you already have a good health insurance policy.

  • Rental Car Coverage 

If you frequently rent out cars then it’s important to add this to your policy.

  • Waiver of Depreciation

Unlike Comprehensive and Collision this pays the value of your car as it was when it was brand new. It does not take into account, depreciation of value due to its on road usage. It’s typically available for new cars that are 2-5 years old.

  • Accident Forgiveness 

With this policy you will be forgiven from paying increased premiums after your first at-fault accident. It can be available at low premium for people with no history of at fault accidents.

  • Uninsured and Underinsured Motorist 

If you were to be hit by a motorist, who was uninsured or underinsured you will not experience the risk of not being compensated properly. Adding this policy will help you and your insurance company to cover the additional costs. It will save you a lot of hassle of suing as well as the risk of losing money for no fault of yours.

Ultimately, choose an insurance company that offers the best premiums for the kind of coverage you require. It is very simple these days, to compare insurance quotes of different companies on comparison websites. Remember to check the reviews of preferred companies on how they manage claims, so you don’t end up spending on damages out of your pocket.

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