Auto insurance is at its heart financial protection. You purchase insurance in order to prevent paying thousands of dollars in the event of a collision or other loss. Many different types of insurance are available, covering almost every conceivable means of loss or damage to your vehicle as well as others to which you may cause damage. Very few drivers need to purchase every single type of insurance, so it is helpful to understand each type in order to decide which ones you require.

Property damage insurance is sometimes known as liability insurance. This product is designed to cover damages that you may do to someone else’s vehicle. Your state sets a minimum amount of this insurance that you must carry but the state requirement is often quite low. If the damage you cause exceeds the limits of your insurance you could be sued for the difference. It is therefore wise to purchase as much property damage insurance as you can afford.

Personal injury insurance is usually required by law, though the required amount may vary by state. This insurance pays a portion of your medical bills (generally 80 percent) and a portion of your lost wages (usually 60 percent) if you are injured in an accident. Personal injury protection often includes a small death benefit as well. This insurance may cover your relatives or household members or even everyone in the car, depending on your insurance company’s policies and state mandates.

Bodily injury insurance is extremely important even though it is not required by many jurisdictions. If you are at fault for an accident that injures someone beyond the limits of his personal injury coverage, bodily injury insurance will cover the difference. Otherwise you could be sued for medical expenses.

Uninsured/Underinsured Motorist Coverage

If you are injured beyond the limits of your personal injury protection in an accident caused by someone who does not carry bodily injury insurance, what are your options? You could certainly sue him and likely win your case. However lawsuits are time consuming and expensive, and if he does not have the money to pay you might be stuck with an uncollectible judgment against him. Instead, your Uninsured/Underinsured Motorist Coverage could cover your injuries. This protection is reasonably priced and will ensure that you are paid in a timely manner. Purchase this coverage if you can.

Collision insurance will reimburse you for damages to your vehicle if you are at fault. Collision coverage will pay up to the actual cash value of the vehicle less your deductible. If your car is financed you may be required to carry collision insurance. However the premiums are high and this product is not recommended for older low value vehicles.

Comprehensive insurance will pay for damage or loss to your vehicle from both theft and acts of God. Comprehensive coverage will pay up to the actual cash value of the vehicle less your deductible. This insurance is usually required if your car is financed but not recommended for older cars with a low cash value.

Many other options are also available, covering everything from medical payments beyond your personal injury coverage to a rental car while yours is being repaired. Most of these options are good to have if you can afford them but not necessary if you can’t. Always speak with your insurance agent if you have any questions or concerns regarding your coverage options.

When you get car insurance quote online from an insurance company, always keep in mind to compare it with quotes issued by other companies with the same car insurance policy features. However, since this is a challenging task, with results often being prone to mistakes and miscalculations, here are some tips that can help you simplify the process.

The first thing you need to do when you get car insurance quote online is to assess your current auto insurance policy, and consider every feature it incorporates, such as limits for property, bodily injury, uninsured motorist and underinsured motorist; what the deductibles are; if you’re willing to pay for towing and rental care reimbursement; and if you have comprehensive coverage or just collision.

Determine if you are still going to need those features in your car insurance, and make note of any changes. For example, there’s no point opting for comprehensive coverage on an old car that has severely decreased in value. Therefore, getting only collision coverage might be able to save you a few hundred dollars on your car insurance premium.

Your second, particularly important step when you get car insurance quote online is to gather specific information about your cars, and the people who drive them. Be prepared to list down information regarding:

1. Drivers license and Social Security Numbers for each driver 2. Year, make and model of each vehicle to be insured 3. Average mileage for each day, and whether it’s used for business or pleasure 4. Safety features such as Anti-lock Brakes (ABS), alarms, air bags etc for each vehicle

Always make an effort to get at least three or more car insurance online quotes for your auto insurance from various sources, because rates are liable to differ between car insurance companies. Put down each online quote on the same sheet of paper, along with comments for each company you’ve listed.

When looking for a cheap car insurance quote online, you must also bear in mind the importance of good value, such as financial stability, fast claims service and good customer service. When you’ve tracked down the car insurance quote online that meet your requirements, keep it under scrutiny for a couple of days in order to be certain that you’ve got the right insurance coverage for your car.

Don’t hesitate to ask a lot of questions if you’re doing business with an agent or representative, who could probably be able to help you save a decent amount on your insurance. It’s also always a good idea to check if there’s a customer service contact on the insurer’s website when you get car insurance quote online.