Compare Auto Insurance Rates

Reader’s Question:

This is my first time to pay for my own auto insurance, and I’m a bit perplexed because there are so many to choose from. I want to compare auto insurance rates first, but I want to know what things do I need to compare aside from price?

Collin

Burbank, CA

Collin, I just know you feel good about yourself as you don’t have to rely on your parents for money to pay your auto insurance policy now.

Now, when shopping for auto insurance, you will be flooded with lots of proposals, all laden with auto insurance jargon. Well, Collin, you only have to look at three items. The things you need to take a closer look at are your deductibles, personal injury limit and property damage limit. Let’s skip premiums at this time, but you have to remember, though, that premiums are also dependent on your car make, year and model. These factors are variable, so let’s not include them for the moment.

Deductibles, are payments you have to pay before your auto insurance steps in. In cases of total wrecks, your deductibles are reimbursable. Your liability coverage includes both property and personal injury coverage. Your personal injury coverage will pay for hospital bills of persons who got injured as a result of an accident. Let’s say your personal injury coverage is $100,000, then amounts over $100,000 will need to be shelled from your pocket. And then, damages done to any property including another person’s car, house, gate or anything that has value will be paid by your property coverage limit.

So, Collin, when you compare auto insurance rates relative to your premium, do take time to look at how much your deductibles are, how much your personal injury limit and your property damage limit is. Knowing these figures, I’m sure you can weigh more fully which quotation to take.