Online car insurance quotes can be hard to understand. Decoding online quotes is a matter of being familiar with auto insurance terminology.
Most states require a minimum level of coverage for drivers referred to by a list of three numbers such as 30/60/30. The numbers are short-hand for the thousands of dollars worth of coverage they represent. The first number is the bodily injury maximum per person who is injured. The second number is the bodily injury maximum for all injuries in an accident. The third number is the maximum property damage liability for an accident.
Bodily Injury Liability
Bodily injury liability protects the driver of a vehicle if another person has medical expenses due to an accident that the driver causes. It also pays for legal costs related to injuries from the accident.
Property damage liability coverage is required by many states. If the driver is at fault in an accident and there is damage to another person's property, then this provision will pay for the damages.
The deductible is the amount you must pay out of pocket before your benefits kick in. If you have a $500 deductible and you make a claim for $3000 you pay the first $500 and the insurance company pays $2500. One of the ways to lower your premiums is to raise your deductible.
When decoding online quotes you may see something called Med Pay. This stands for Medical Payment and covers injuries of the driver and passengers caused by an accident. Whether that accident is caused by the insured driver or by another driver who causes an accident it will cover the medical expenses.
Although most drivers do have insurance you could be in an accident caused by someone who doesn't have insurance. Even if the other driver does have insurance he may not have a high enough limit your uninsured motorist coverage would pick up the rest of the expenses up to the limit of the policy.
Collision and Comprehensive Coverage
This kind of policy will cover the damage to your vehicle if you are involved in an accident. Comprehensive coverage is for any damages to your car that are not the result of an accident.
Online insurance quotes will also give you some options for the length of coverage. You may have a choice of a six months or twelve months. If you want to pay monthly you will see the amount of the down payment and the amount of the monthly payments.
When decoding your online quote, carefully examine the amount of coverage to be sure they are what you requested and that each plan has the same limits so that you are comparing like options.