What is the Best Car Insurance?

You may know that, in most states, you have to purchase auto insurance in order to legally drive a vehicle. You may also know that auto insurance policies contain a variety of coverages. What is the best car insurance that will satisfy your state’s legal requirements, while providing you with protection against financial risks?

Full Coverage: The Best Car Insurance Package

If you are looking for the maximum financial protection, a full coverage package is the way to go. Full coverage auto insurance comes with liability coverage, which pays for damages caused to other drivers, passengers, and pedestrians if you cause an auto accident. It also comes with comprehensive and collision coverages, which pay for damage to your car, and to personal property carried in your vehicle, regardless of who is at fault in an accident. Full coverage may also include extra coverages such as medical payments, towing and rental, and accidental death coverages. Of course, full coverage is the most expensive type of car insurance, since it provides the greatest level of protection.

Liability Coverage: The Best Choice for Limited Protection

If you have an older car, a liability policy may be the best car insurance for you. A liability policy meets state insurance requirements, and provides protection against lawsuits if you cause an auto accident. It will not pay for damage to your vehicle; however, this may not be important to you if your car has a low market value. For example, if your car is worth $1,000, and you carry comprehensive and collision coverages with a $500 deductible, $500 would be the most a full coverage policy would pay to repair or replace your car. The extra premiums you would pay for full coverage might not be worth the expense. In this case, a liability policy would be the best car insurance option to meet your needs.

No related posts.