Auto insurance quotes can vary considerably, and if you’ve ever tried to choose different options when comparing quotes then you know that the difference can account for hundreds and even thousands of dollars. There are many different factors involved in auto insurance quotes, each having its weight in the final result. However, when it comes to outlining the most crucial aspects of insurance pricing, the type and amount of coverage are certainly the most influential aspects of the quote form. That’s why it is important to know the purpose of each coverage type before buying the policy. Here are the most common coverage types to consider:
Third party liability
This is the basic and the only mandatory coverage type that is included in every policy. It pays for the property damage and injuries delivered to the third party in an accident you were at fault. Each state has requirements on the minimal level of this coverage but it is advised to go beyond this level in order to make sure that even the most severe accidents will be covered.
Collision
Collision coverage pays you for repairing or replacing your vehicle in case of a collision with another car or element of infrastructure. Unlike third party liability coverage, it doesn’t matter who’s at fault in the accident.
Comprehensive coverage and auto insurance quotes
Comprehensive coverage often comes hand by hand with collision as it is a complimentary feature. It pays for the damage sustained by your car in situations other than collision on the road such as wind, storms, riots, floods, earthquakes and others.
Uninsured motorist
If you are unfortunate to have a collision with an uninsured or hit-and-run motorist, your damage won’t be covered since the other party doesn’t offer any third party liability coverage. In cases like these, uninsured motorist coverage acts as the other party’s insurance policy and covers your losses.
Personal injury protection
Personal injury protection pays for the medical bills of the passengers and the driver of your car if they are injured during a collision. However, if the injured person has health insurance they are required to choose between either of the options.
Gap
This is a very useful coverage option for those taking a car loan. It covers the difference between your debt on loan and the amount of coverage paid by the insurance company in case you have a crash while still paying out your loan.Sure, it’s tempting to get them all but as a result your policy will be too costly. So choose wisely and make sure to get only the ones that are really necessary for you. But remember that the more coverage options you get with your policy the higher will be your auto insurance quotes.