Different auto policies contain different features to cater to the needs of different motorists. In turn, these features determine your insurance premiums. Some of the factors you should consider when choosing the features of your car insurance policy are your driving record, your credit score, and your state of residence. According to a recent report from the Insurance Information Institute, the states of South Dakota, North Dakota, Iowa, and Idaho have some of the lowest insurance rates in America. On the other hand, motorists in the states of Michigan, New York, Louisiana, and New Jersey pay some of the highest insurance rates in the US. One of the easiest ways to lower your car insurance premiums is to pay only for the essential features you need. Some of the essential car insurance features that you may need include:
Required by most states across the US, liability coverage will help you compensate other parties, including pedestrians and other motorists, affected by a car accident if you are the at-fault party. Typically, this type of auto coverage comes in two flavours, including property damage liability and bodily injury liability. The former, as the name implies, pays for medical expenses such as hospital stays and rehabilitation, whereas the latter pays for things such as damaged structures and vehicle repairs. It is important to note that liability does not cover you or your passengers. That said, auto insurance companies typically outline liability policies as a ratio. For example, a 100/200/50 policy has a coverage limit of $100,000 and $200,000 for injuries to a single and multiple individuals, respectively, as well as a coverage limit of $50,000 for property damage per incident.
Personal Injury Protection
Otherwise known as no-fault insurance, personal injury protection (PIP) covers both you and your passengers, whether or not you are the at-fault party. In particular, PIP coverage pays for lost wages, if any, as well as your medical expenses. Some of the –œno-fault states– that require motorists to carry this type of auto coverage include Pennsylvania, Michigan, New Jersey, and New York.
While the law does not require you to carry insurance, you should carry it because car crashes are quite common on US roads and highways. On average, about 16,400 car crashes occur across the country every day, translating to more than 6 million car crashes annually. Moreover, according to experts, the average drivers will be involved in about four car crashes over his/her lifetime. This is where collision insurance comes in handy. Specifically, if you are involved in a car crash, collision insurance will help you pay for your vehicle repairs. One of the notable features of collision insurance policy is a deductible, which is basically a certain amount of money you need to pay upfront when making a claim. In essence, a higher deductible means lower monthly premiums and vice versa.
Some of the essential car insurance features you may need to include are collision insurance, Personal Injury Protection (PIP), and liability coverage. To learn more about these and other features, visit www.cfpinsurance.com