What You Need to Know About Auto Insurance
In a world where the cost of car insurance is getting higher by the day, many consumers are looking for a cheaper auto insurance policy beat your PB. This article will explain what exactly goes into auto insurance, the types of coverage, how much you can expect to pay in case of an accident, and how to pay for medical payments coverage. Once you have a better understanding of auto insurance, you can make a smart decision to get yourself a policy. It can be a huge relief to find a policy at a price you can afford.
Cost of auto insurance
While you can’t compare rates nationwide, auto insurance premiums vary from state to state. Vermont drivers pay $1,250 per year for insurance, while drivers in New York, Louisiana, Michigan, and New Jersey pay the most on average. In comparison, drivers in New Hampshire pay just $83 per month and in Los Angeles, $2700 per year. The average cost of auto insurance in New York is $270 more than in Vermont. For more information, visit NerdWallet.
Types of coverage
In addition to liability insurance, there are different types of coverage for your vehicle. Collision coverage pays for damages to your car after an accident. In many states, collision insurance is required. Comprehensive coverage pays for damages not caused by collision, such as storms, animal attacks, and vandalism. In addition, PIP insurance pays for medical bills and funeral costs, though it does not typically cover lost wages. This type of insurance may also be required if you are driving a leased vehicle or financed car.
Dollar limits for liability coverage
Liability coverage for your auto insurance policy typically comes with three different dollar limits. These limits summarize the total money your auto insurance will pay for your medical expenses in the event of an accident. If you have a liability limit of $30,000 per person and $60,000 per accident, you are covered to the full amount of that limit. Anything over this limit will be your responsibility. This limit is also referred to as the ‘per accident liability limit.’
Medical payments coverage
Adding medical payments coverage to your auto insurance policy can offer peace of mind in tough economic times. While the liability coverage from the at-fault driver may take months to process, medical payments coverage reimburses your medical expenses upfront. This means that you can get the health care you need right away. But before you add MedPay to your policy, you need to know more about it. Here are some tips to help you decide if you should include this coverage.
Umbrella policy
When it comes to liability insurance, an umbrella policy can be your money’s best friend. In most cases, your auto and homeowners insurance policies include personal liability coverage. This kicks in when you have an accident and someone gets injured. While liability insurance can cover the cost of medical bills, it is often limited to a certain amount of money. For most people, that limit is $100,000. An umbrella policy will pay the rest.
