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How to Compare Car Insurance Quotes

When it comes to comparing car insurance quotes, there are a few things to consider. First, make sure the policies and type of coverage match up. Next, it’s always a good idea to have a basic understanding of the lingo to get a good idea of what you’ll be paying for, and any potential hidden costs.

• Premium - Your monthly payment to an insurance company to stay covered.
• Deductible - The amount you will pay out of your own pocket before your benefits kick in.
• Limit - The Maximum dollar amount your insurance company will pay for damages.
• Discounts - Rewards for positive driving tendencies, often in the form of discounted rates.

It’s also important to look past the pricing, and research the auto insurance company you are choosing. Take the time to read what other policyholders are saying, and whether or not they have a good track record of handling claims.

Establishing Your Needs

Did you know that there are 5 main types of car insurance? Liability insurance, collision coverage, comprehensive coverage, personal injury protection, and uninsured motorist protection, and they are all used for different purposes. So, before you start shopping around for auto insurance quotes online, you need to establish what it is you need.

• Liability Insurance - Insurance coverage for when you’re at fault. Most of your costs, including damage repairs and medical bills will be covered until you reach your limit.
• Collision Coverage - Insurance that will pay for damages to your car, or the value of your car in the event it’s totaled. Not always needed for older cars with low value.
• Comprehensive Coverage - The best, and most expensive coverage you can have. You’re covered for most things, like weather damage and theft, not just accidents.
• Personal Injury Protection (PIP) - Insurance coverage designed to cover your medical bills in the event of an accident. You, and your passengers will be covered no matter who is at fault.
• Uninsured Motorist Protection - The most affordable coverage type, you will be covered in the event the person at fault doesn’t have insurance, or can’t pay for damages.

Standard Coverage

While it’s not a popular option, plenty of Americans choose to enroll in what’s known as standard auto insurance. In its simplest terms, standard coverage refers to the minimum amount of coverage your state requires while still allowing you to legally drive. Also known as basic coverage, standard car insurance usually only includes liability insurance.

While standard coverage may be the most affordable option out there, you do run the risk of paying more down the line. If you can swing it, you’ll have more peace of mind with a higher tier of coverage, for example, comprehensive coverage.

Additional Coverage

In the world of auto insurance, additional coverage refers to any policy you purchase that adds an extra level of coverage to a standard policy. The best example of this is comprehensive coverage, which will ensure you are covered in almost any event, including instances of vandalism or if you hit an animal.

Don’t be fooled by the higher premiums. While it’s true you will pay more up front for additional auto coverage, you will end up saving thousands in bills down the line. Explore your options with FirstQuote Auto, or talk to one of our experienced agents to find out which coverage is the best fit for you.