Car insurance quotes might seem to be difficult to understand in the beginning. But, if you are willing to spend time, sit down and read it; then it becomes easier to comprehend. So, what is exactly a car insurance quote? It is the price estimated as the cost of the auto coverage policy. The price estimation is done based on the financial risk the policy will cause for the insurance company. The auto insurance quote will include information related to premiums, coverages offered, limits to coverage, and also the deductible amount. It will also include the discounts you are entitled to receive.
Before you start searching for quotes ensure that you have decided all your car insurance needs, coverages needed and also know about your financial limitations. You could take out a paper, think and then decide all these things before picking up the phone to call your insurance company. The insurance company will also need some information from you so that they can decide on the premiums and rates. Here are the pieces of information needed by an insurance company:
- The details of your car which includes the year of purchase, make, VIN and model of the vehicle.
- An estimate of the number of miles your car might be used to travel in a year.
- Personal information. It will include your full name, age, sex, occupation, driving license number, year of getting the license.
- Detailed information about any previous history of traffic violations, car accidents, the cause of the accident, the exact date of the incident, the person who was faulty of causing the accident, injuries, loss of life or property due to that accident, insurance claims applied and the claim amount received if applicable.
- Anti-theft systems or security measures installed in the vehicle to be insured.
Make sure you have all the above information ready before contacting the insurance provider for getting the insurance quote.
Here are some of the points included in the insurance quote:
Body Injury Liabilities And Property Damage Liabilities
There can be incidents where your vehicle gets involved in an accident and causes injuries to any third person. Your vehicle can also cause damage to the property of a third person. Your car insurance will provide you coverage of protection against these liabilities. Your insurance quote will contain details about both injury liability and property damage liability. Under the injury and property damage liability, there will be two amounts listed.
- The first amount will be the maximum amount the insurance company will pay per person in case of damages caused to them.
- The second amount will be the maximum total amount the insurance company will pay for an accident
PIP (Personal Injury Protection)
The car insurance quote will contain the PIP details too. Under this coverage, your insurance company will pay for any personal injuries caused to you due to a vehicle accident. It pays the cost of your medical expenses and also compensates for the loss of wages caused due to the accident. A person involved in an accident will have to take leave from work and the loss of salary due to the leave taken will be compensated by the insurance company. The insurance will also pay for other people injured in the accident along with you while traveling on the same vehicle.
The comprehensive coverage offers a cover of protection and compensates for the losses incurred due to damage to your car caused by reasons other than accidental collisions. The reasons can be theft of the car, animals damaging the vehicle or natural disasters causing serious damages to the car. If your car is more than four years old, then getting a comprehensive coverage may not be worth it as the insurance only pays for the current market price of the car in case of serious damages.
Your car insurance quote will also contain information about your deductibles. The deductible is the amount you are willing to pay in case of collisions or accidents. If the deductible amount is higher, then obviously the premiums will be lower. It is always better to pay for the little damages like a dent or scrapings on the car instead of filing a claim for each and every small damage. This also helps in lowering the premium amounts.
Collision coverage is the one that pays for the damages to your vehicle in case of any accidents with other vehicles or objects like dividers or electric posts. Just as in the case of comprehensive coverage, the collision coverage is also not worth the effort if the car is an old one. In case of collision coverage also, you can choose to pay for small damages and reduce the premium amounts.
Uninsured Or Underinsured Motorists
There can be instances where your vehicle is hit by another vehicle which in not insured or is underinsured. Hence, even if the fault is not on your side, the motorist won’t have the necessary insurance coverage to pay for the injuries or damages caused to you. In such a case, your car insurance will pay for your injuries and damages caused by the third person. It is always better to take this coverage as the level of risk can be high.
Emergency Road Services
In case your car gets broken down in the midst of a road, then this coverage pays for your towing needs, roadside assistance needs and also locksmith charges if needed. Check whether your car manufacturer offers this service. If yes, then there is no need to get this coverage.
Car Rental Coverage
If your car gets involved in an accident and the repair works will take time, then this coverage will take care of your car rental charges till the repair works are complete. This coverage can be avoided if you can manage a few days without the car.
These are the items included in the car insurance quote. In short, the insurance quote will contain all the information related to your insurance.