What to Look for in Car Insurance?

Looking to buy car insurance online. Did you know there are some things you should consider before making your purchase. Here are some quick tips to keep in mind.

#1 How much liability?
By law, insurance companies have to provide you with the minimum of bodily injury liability for your state. If your head just spun, it’s really no big deal as the insurance company will have already covered you for your state’s liability minimum. The question is should you get more liability insurance than legally required?

Almost all insurance advisors agree that getting more liability coverage is advisable as it isn’t too much to raise your liability to $500,000 or even a million dollars -in return for protecting from large lawsuits. If you are wondering what liability is, in short, it is the amount you can be sued for by another person if you injure them physically in a car accident. Read our section on bodily injury coverage for a more in-depth analysis.

#2 Should I get Collision or Comprehensive coverage?
If your car is under five years you may want to get collision and comprehensive coverage as your insurance company will cover the repair costs minus the deductible if you are involved in an accident and are deemed at-fault.

#3 How much should deductibles be?
Deductibles are a bit of drag as even if you are not at-fault in an accident you have to pay out some money for the insurance company to cover the remainder of the repair bill. On the bright side, you will pay less premium the higher your deductibles and it is a good deterrent for you to drive safer -since you’ll have to pay out of pocket in the event of an accident.