If you have a car, you need car insurance. Just about every state requires that drivers have a minimum level of insurance coverage in case of an accident. But did you know that moving (even within the same state) can impact your car insurance rate? Since you have to notify your insurer of your new address anyway, why not make sure they're giving you the best deal, too?
Let HotPads tell a few things you might not know about auto insurance and help you
Also, as an added benefit of using HotPads, you may be eligible to receive special rates on your auto insurance. You may be eligible to receive even additional savings if you insure both your auto and your home with Liberty Mutual.
Auto Insurance Basics
The standard policy
- Medical payments or Personal Injury Protection (PIP)
- Uninsured/Underinsured motorists coverage
A standard auto insurance policy gives you five basic types of coverage. It's important to understand that not all of these coverages are mandatory, and your policy may not include them all. Find out what kind of coverage you need before signing on the dotted line (or clicking on the dotted link for an online policy.) The five types of coverage are:
This product provides you with protection if you're in an at-fault accident and you hurt someone or damage someone's property. This product also provides defense if someone sues you as a result of that accident.
Medical payments/personal injury protection
This protection covers medical expenses up to the policy limits for anyone injured while in your vehicle, regardless of who is at fault. You and your family are also protected if you're injured in any car or hit by another car.
Uninsured/Underinsured motorists coverage
If you're in an accident caused by someone who does not have insurance, or not enough insurance, you and your other passengers in your vehicle are covered, up to your policy limits.
Collision coverage pays for repairs to your vehicle when you have an accident. If your car is completely destroyed (or if the repairs would exceed the car's value) you will only receive what your car is currently worth, not what it would cost to buy a new one.
Ever see a news story where a tree falls on a car? This is where comprehensive coverage comes in. It protects your car if it's stolen or damaged by something other than collision such as fire, vandalism, windstorm, earthquake or hail.
More Auto Insurance Resources
Next: Learn More about Car Insurance
Hit the jump for more information about auto insurance, with articles and money saving tips.