Automobile Insurance

Your car is a significant investment, and you'll want to protect it with adequate car insurance. In fact, most states require automobile owners to have insurance. For many shoppers the first instinct is to find the cheapest car insurance available. While this approach is tempting, cheap insurance can cost you even more money in the long run.

Choosing an Insurance Company

Although money is a practical consideration, other aspects are even more important. As you compare car insurance companies, consider:

How long has the company been in business?

What is its reputation?

How does it handle claims?

Does it have a 24-hour emergency hotline?

What is its cancellation policy?

Does the company automatically cancel policies after a claim?

What types of coverage are offered?

Does the company offer rental car coverage while your car is being repaired?

Factors Determining Rates

You should be wary of any insurance company promising cheap rates across the board. Insurance premiums can vary widely. Most reputable companies offer personalized insurance quotes based on a number of factors, including:

Auto Insurance Discounts

Many insurance companies offer various discounts to help off-set the cost of auto insurance. Some common discounts include:

Personal Injury Protection - otherwise know as PIP. This pays for medical coverage for injuries sustained in an auto accident. It is sometimes called "no-fault" because it pays the medical expenses, no matter who caused the accident. It has two parts.

1) cost of treatment you receive from hospitals, doctors and other medical providers and any medical equipment that my be needed for treatment.

2) Reimbursement for other expenses such as loss of wages and the need to hire someone to take care of your home or family. Medical expense limit is $250,000. If a claim exceeds this amount, then the coverage gets transferred to your health insurance provider.

Bodily injury - pays for claims and lawsuits to people who are injured or dies as a result of an accident you cause. It compensates for paid, suffering, and economic damages such as loss of wages.Property damage - Pays for claims and lawsuits by people whose property is damaged as a result of an auto accident you cause.Uninsured Motorist - Pays to you, for property damage or bodily injury if you are in an auto accident caused by an uninsured motorist.

Right to sue

Unlimited right to Sue - Under the NO limitation or lawsuit option, you retain the right to sue the person who caused an auto accident for pain and suffering or any injury.

Limited right to sue - By choosing the limitation or lawsuit option, you agree not to sue the person who caused an auto accident for your pain and suffering unless you sustain on of the permanent injuries listed below (choosing this option does not affect your ability to sue for economic damages such as medical expenses and loss of wages)

Collision - Pays for damage to your vehicle as a result of a collision with another car or object.

Comprehensive - (Also know as "other than collision" - Pays for damage to your vehicle that is not as a result of collision, such as theft, vandalism, flooding, fire, broken windshield, or animal collision.

Auto insurance is an important purchase. Although you hope you never have to use your coverage, you need a policy that will come through for you in bad times. Let us help you separate fact from fiction and make a decision you can live with.