Business –

A car insurance quote reflects the annual premiums you will pay for a given amount of coverage with a particular insurer. Usually, the quote shows the premium you will pay on an annual basis, though some quotes may provide per-month estimates as well. The premium the insurer will quote you is determined from the individual premiums of a number of coverages. Each individual coverage has its own premium that contributes to the total amount you pay for auto insurance every year. The better you understand the different premiums that comprise your car insurance quote, the better equipped you will be to identify the best policies at the lowest rates. Read on for an explanation of the various coverages that comprise a standard car insurance policy.

Underinsured & Uninsured Driver Coverage

Your state may require you to also carry certain amounts of uninsured/underinsured motorist coverage. This coverage will pay for your medical expenses if you are injured in a collision with an uninsured or underinsured driver. In some states, this coverage can also help pay for property damage the uninsured driver caused. If your car insurance quote is too high, you might consider eliminating this coverage or reducing the coverage amount to the mandatory legal minimum, if applicable.

Paying for Your Injuries: Personal Injury Protection

A car insurance quote sometimes includes medical payments coverage, also know as personal injury protection (PIP). This coverage is designed to help pay for your medical expenses resulting from injuries sustained in a collision. PIP will also pay for the medical expenses of your injured passengers. If you or your passengers die in a collision, PIP will also pay for funeral expenses, burial, etc. Medical payments coverage is largely unnecessary if you have an adequate health insurance policy, but you may want to carry a small amount to help pay for your health insurance deductibles in the event of an accident.

Additional Coverage

The most common additional coverages included in car insurance quotes are rental reimbursement and towing or roadside assistance. Rental reimbursement will pay for a rental car in the event that your vehicle is incapacitated. Rental coverage is usually limited to a certain amount of money per day and a limited number of days. With towing assistance, your insurer will cover the cost of a tow truck if your vehicle is incapacitated. Some policies include general roadside assistance, which offers emergency services like towing, flat-tire changes, fuel delivery, etc.