Basic liability coverage
This is the single most important type of auto insurance coverage. Carrying too little auto accident liability can expose you to judgments and legal costs for years to come.
Additional auto insurance coverage (anything you get over the minimum) gets cheaper as you buy more. This means that your premium goes up a little while your protection goes up a lot.
Pay special attention to bodily injury liability. It's easy to imagine the cost of personal injuries (plus pain and suffering and lost wages) totalling a million dollars from a somewhat serious accident
Medical Payments Coverage
Medical payments coverage, also called personal injury protection, or PIP, covers the cost of injuries to you, your family, and your passengers. Medical payments coverage can be useless and costly. Why? First off, if you have good health insurance, you don't need PIP. Your health policy should pay for treatment of injuries from a car accident, and it will probably cover more than a PIP policy would.
Secondly, PIP is limited. It pays for a trip to the hospital caused by an automobile. But it doesn't cover any other trip to the hospital. See the problem? You're better off putting your money toward a good heath policy. That way you'll be covered no matter what sent you to the hospital.
Save on Car Insurance Endorsements
Car insurance endorsements include coverage for towing, on-site labor, and rental car expenses. These are inexpensive car insurance policies, but they're not always necessary.
Daily rental insurance may be a better deal, especially if you're a driver who really relies on their car. The cost is low and the convenience level high. However, if you have other forms of transportation available (another car, a car pool, public transport) you might want to pass. You'll get cheaper car insurance.
Your car
The kind of car you drive can have a big effect on your insurance costs. High profile cars (this means both sporty coupes and popular cars preferred by thieves, like Honda Accords) will earn higher premiums than lower profile sedans and station wagons.
Your provider
Shopping around several car insurance companies might be the best way to save on car insurance. Quotes for the same coverage can vary widely from lender to lender, and gathering a few before you make your decision can be a real money saver.
Your Policy:
Choosing the right amount of coverage in the right areas will both save you money and protect you better.
Raising deductibles, increasing liability limits, and eliminating redundant policies will make your car insurance dollar stretch farther. You can learn more about these and other car insurance choices.
