Coverage Types

Coverage Type

New drivers might not know what type of coverage to buy or the proper limit amounts. That’s where Insurance On The Spot comes in, with helpful agents that will guide you through the entire insurance process, including a complimentary consultation.

Most people want basic car insurance that gets them the legal coverage they need at a low price. This type of insurance plan will generally not be for the minimum amounts, but not necessarily expensive comprehensive insurance.

In recent years, many people have chosen to lease their vehicle, which often requires purchasing comprehensive auto insurance. While leasing might seem a bit cheaper, the higher insurance rates should be taken into consideration.

Review Insurance Laws Near You

Your first step is to review your state insurance minimums. This will give you a starting point for the coverage you need for your vehicle. Each state has different insurance requirements and laws, so it is a good thing to familiarize yourself with your state-specific requirements. If you are moving to another area, make sure you educate yourself on those laws, so you can comply.

Some areas like Michigan and Louisiana have very different insurance laws that you need to adjust to if you are going to be moving there. Getting basic vehicle insurance will differ from each state but will always have, in general, these important categories.

1. Liability Insurance (3rd party)

Liability insurance is the most basic type of coverage you can get for your vehicle. In nearly all states, this is the mandatory type of coverage you will be required to have while operating a vehicle. There are two facets to liability coverage:

Liability auto insurance - Property damage

This will pay for any auto repairs, a total vehicle replacement, or any other personal property you inflicted damage on due to operating your automobile.

Liability car insurance - Bodily injury

This will pay for the medical costs of persons you injured and were deemed liable for due to an accident you caused.

When you are involved in an automobile accident you cause and are responsible for; your liability coverage will pay for repairs done to the other party’s vehicle and any property damage. Remember, as the name implies, this type of insurance only pays for the damage done to someone else’s car, meaning you are liable for an accident.

You will need additional collision coverage for your vehicle. Basic liability limits vary depending on which state you reside in, but normal limits are $20,000 for Bodily injury and $40,000 for property damage inflicted.

In recent years, some states, such as Texas, have increased the legal liability minimums, as accident expenses, such as vehicle repairs, have gotten a lot more expensive. Get a free Insure On The Spot Insurance quote near you and see how much you can save in five short minutes. To get started, just enter your zip code.

Car crash

2. Collision Insurance

This type of coverage is a rather basic car insurance component on most policies. Collision insurance pays for damage done to your car and not any damage done to the other party’s vehicle.

If you have a really “beat up” old car that is only worth a few thousand dollars, you might want to decline it and save some money. However, as stated previously, if you are leasing a new vehicle or have an outstanding auto loan, this coverage will be mandatory. It’s also good to get if you have an expensive car that you own outright and want to protect the substantial investment you have made.

A good way to reduce your costs of this added collision coverage is to get the highest deductible that is offered. Opt for a deductible of $1,000 or higher. Also, remember to get every discount you qualify for, so you can lower your premiums even more.

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3. Uninsured or Underinsured Motorists Insurance

With more and more drivers operating non-insured vehicles, this is important coverage to consider adding to your policy. If a person hits you and has no vehicle insurance, uninsured motorist coverage will pay for damage done to your car.

In addition, many people carry small liability limits that may not fully pay for the costs of repairs or replacement of your car and property after an accident. Underinsured motorist’s coverage is also worth considering as it will pay for the balance after the other party’s liability insurance amounts are depleted.

Suppose you live in a large urban area like Los Angeles. In that case, about 1 in 4 drivers have no auto insurance whatsoever, so getting this coverage should be strongly considered, especially if you live in a congested urban area.

Comparison Shop Quotes Online and Get Your Best Rate

The quickest and easiest way to find the cheapest auto insurance for the coverage you need is to compare quotes online. It’s never been so easy to review multiple quotes, and you can even use your smartphone to shop and buy.

At Insure On The Spot, you can build a custom policy in minutes and then see what company has the best quote for that specific coverage. Most drivers save over $550 shopping with Insurance On The Spot, but some save even more. Get your custom auto quote right away and see how easy it is to save.