Car Insurance

A Beginner’s Guide to Car Insurance

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Car insurance is one field that makes insurance companies very competitive for their customers’ business. That means that it is a good idea to keep up on their prices and features on a constant basis. Be sure to compare them at least every six months.

First, you must decide what kind of insurance coverage is best for you and more specifically your money demands. The two options for car insurance are limited liability coverage and comprehensive coverage.

Limited Liability Coverage

As the cheapest option, limited liability insurance is the most common. Since most people aren’t involved in accidents where they are at fault on a regular basis, most see it as unnecessary. Make sure you know what you get and what you don’t get with limited liability insurance before you make your choice with car insurance.

Limited liability auto insurance covers the cost of repairs and bodily injury for the other driver in an accident which you are responsible for. This insurance ensures that you don’t have to pay for the physical damage done to their car or any bodily injuries they may have suffered. However, the property damage and bodily harm you may suffer are not covered under this insurance. You are responsible to pay for this out of your own pocket.

If you’re a careful driver, chances are that you won’t constantly be in accidents. This is why this option is most appealing to the majority of people. Bear in mind though, a single substantial accident can severely damage your bank account. This insurance option is best for those with a proven superb driving record.

Since the insurance company covers less, then your insurance costs less. This is enticing to those who don’t have much spare money or don’t want to pay more than they absolutely must.

Also, the insurance rates increase with the number of people insured on the plan. So, if you have children nearing the driving age, your rates will go up, and substantially. This can be a nightmare for a parent with several children around the same age.

Final Thoughts

No matter which is more important to you, price or the extent of coverage, be sure to research your options and insurance companies as extensively as you possibly can. This is sure to save you money and as well as give you the knowledge that you are getting the best deal possible from the insurance companies’ competition for your money.

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