Guide: How to Find an Auto Insurance Policy

Aug 16th, 2010 | By Hot News Reporter | Category: Insurance Today

All drivers are required to have auto insurance. There are many things to consider when you are looking for one. States require that drivers have the basic coverage. Find out what it is in your state and get the sufficient policy so that you do not suffer the consequences of going against the law.

There are plenty of states which require you to present insurance proof before you can buy a car. This document will have to be kept inside the vehicle at all times just in case you get stopped for something. Your basic auto insurance coverage needs provision for bodily harm and property damage.

The amounts that have to be covered by your auto insurance policy are very specific. Bodily injury, per accident, is at $25,000. Property damage, to both public and private, is at $15,000. Total injury expense per accident is at $50,000. These amounts are mandatory and they should be covered no matter what kind of auto insurance you get.

Some states are tort states. This means that the driver at fault for an accident is liable for the other party’s medical expenses. The damage can also include loss of income and provision for suffering and pain. The auto insurance company will be the one to settle this.

If you are visiting a state and looking to rent a car, make sure that it is covered by the state’s minimum liability policy. The terms of your credit card should be sufficient to cover this. Most auto insurance policies extend to rented cars. See if yours and your credit card provider has provisions about this. There are also rental car companies that give you the option to having a day-rate auto coverage.

Some states also require under-insured or uninsured motorist coverage for your auto insurance plan. This is your protection in case the other person involved in the accident is not adequately insured or has no insurance at all.

Remember that auto insurance requirements vary per state. The important thing is to comply with the laws in yours. It is better to have a higher coverage than just the minimum liability. This allows you to be at peace knowing that all your potential costs are covered.

Keep in mind that the insurance business is risk-based. While you cannot change certain things about you that make you more or less risky, one thing you can do is to opt for auto insurance discounts.

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