Car Coverage

From LoveToKnow Insurance

Car coverage is a must according to the law. The only problem with this is the cost. car insurance premiums will set you back a pretty penny. To save money on your insurance bill, you might want to learn more about the different types of coverage that you can purchase and the multitude of car insurance discounts that may be available to you.

Types of Car Coverage

By law, you are required to carry some form of car coverage on the vehicles that you own. However, the amount of coverage you decide to buy is at your discretion.

The more insurance you carry, the better your coverage will be. Of course, you will also be expected to pay higher premiums with higher levels of coverage. With that in mind, here are the two most common forms of coverage that you can buy:

Partial Coverage

Typically called PLPD (Public Liability and Property Damage), partial insurance coverage is exactly what the name implies—partial coverage. This form of insurance satisfies your insurance obligation to your state of permanent residence. But that is about all it satisfies.

PLPD insurance does not cover any damage that is done to your vehicle in a collision. Nor does it cover instances of theft or vandalism. If your car needs to be repaired or replaced due to damage it has incurred, you will be responsible financially, not your insurance company.

The premiums for PLPD insurance are considerably less than the premiums for full coverage insurance. This can make it tempting to go with the lowest amount of car coverage allowed by law. However, consumers should keep in mind that in the case of insurance, you get what you pay for.

Full Coverage

Although there is really no such thing as "full coverage" insurance, this term is often used to describe car coverage that includes physical damage coverage, a.k.a. "comprehensive and collision coverage".

With this type of insurance, damages to your vehicle that result from a collision or another incident, such as vandalism and theft, will be covered. You may also receive other benefits such as roadside assistance and windshield repair.

If you are leasing a vehicle or if there is some sort of lien on your car, you may be required to carry a specific amount of car coverage. In most cases, PLPD will not suffice. The cost of full coverage insurance will vary. Policies with more bells and whistles than average will come with above-average costs.


Car Coverage Discounts

When shopping for car coverage, you will want to be aware of all of the different discounts that are available to you. These discounts can significantly lower your premiums and may give you the ability to purchase other forms of coverage such as liability insurance or umbrella insurance.

Some of the most common car insurance discounts that you will want to look for include:

  • Multi-car discounts (Offered to those with multiple vehicles insured under one policy)
  • Multi-policy discounts (Offered to those who have multiple policies, i.e. car and homeowner's)
  • Seatbelt discounts (Offered to those with automatic seatbelts)
  • Safe driver discounts (Offered to those who have exemplary driving records)
  • Anti theft/alarm discounts (Offered to those who have "safe" cars)
  • Airbag discounts (Offered to those who have one or more airbags installed in the vehicle)
  • Driving school discounts (Offered to those who have passed driver's education courses)

Getting Insurance Quotes

Before buying car coverage, it is a good idea to get insurance quotes from more than one company or agent. This will give you an opportunity to compare not only prices, but also levels of coverage that are being offered. By getting quotes regularly, you could save yourself thousands of dollars in a ten year span.


 


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