Auto Insurance Coverage Basics

Many people rely on their autos every day to get to where they need to go. If something were to happen while on the road, you will want to have good auto insurance to fall back on. According to CNN Money, auto insurance premiums can be controlled as long as you understand the right coverage to ask for. When you use an auto insurance checklist, you must be sure to ask the right questions.

Liability Coverage:
The liability portion of your auto insurance covers you in case someone you get in accident with sues you for damages. According to online auto resource Edmunds, getting the right amount of auto liability coverage can help to protect your personal assets. If you do not have sufficient liability coverage, and you get in an accident where you are at fault and the other party incurs damages, then you could get personally sued for any amount of damages over your liability coverage. To protect yourself, Edmunds recommends getting $50,000 in coverage for individual liability, $100,000 for group liability and $25,000 in property damage coverage.
Deductible:
When you are choosing your deductible amount for collision coverage, it is best to be practical. According to CNN Money, you should look at your auto insurance as coverage in case of a catastrophic incident such as an accident or theft. For dents and scratches, it does not make sense to use your car insurance. One of the more common deductibles is $200 per incident. CNN Money suggests that you consider raising your deductible to $1,000 to save almost 40 percent off of your monthly premiums. You are covered for any catastrophic damage over $1,000, and you would have to come up with the first $1,000 out of pocket. You could take the money you save on premiums and put it into a bank account for emergency purposes. Over time, you will have saved up your $1,000 deductible and then some. This will give you a lower premium cost and the money to cover the higher deductible if you should ever need it.
Additional Savings:
When you are discussing your auto insurance policy with your agent, the New York State Insurance Department recommends discussing the additional savings items associated with the contract. These include discounts for taking a defensive driving course, anti-lock brakes, alarm system, having multiple cars on the same policy and daytime running lights.
Additional Coverage:
It is a good idea to find out what kind of value you are getting when comparing auto insurance policies. Services such as rental car, full glass coverage, roadside assistance and additional driver insurance are charged differently by various companies. When checking out your auto insurance purchase, look for the premium that offers the most services for the least amount of money.

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