Liability Auto Insurance – A Must Have

Liability auto insurance is considered the most affordable basically because it is the least coverage that one can purchase in which to abide by the law. The minimum limits which must varies by state. Basic liability breaks down to two parts: Bodily injury (BI), and Property damage (PD). There are some states that also require motorist to have uninsured/underinsured motorist coverage, which have been defined below.

I.             Bodily Injury (BI): This pays for claims for damages to another party for items such as medical expenses, lost wages, and pain and suffering. It has limits if one person got injured and if two or more people were injured in one accident. This is paid if the insured is found to be at fault.

II.           Property Damage (PD): This coverage pays for damages caused by one to others property such as crushed fender, broken glass, or a damaged wall or fence.

III.          Underinsured/Insured motorist coverage: This protects one directly if one is injured by a hit-and-run driver or a driver who does not have a policy or whose policy limits are not enough to cover one’s injuries.

It is important to understand the requirements in the state where a driver resides. Since this is the mandatory policy that all motorists must carry, it is very important to locate the proper protection as well as a cheap auto insurance rate. By taking the time to obtain as many quotes as possible consumers have a better chance of finding the cheapest policies. This is due to the fact that insurers charge very differently and there may be a significant difference in price. When obtaining rates the individual should take the time to make a car insurance comparison of not only price but also the protection being offered.

However, to negotiate with insures in order to bring down the cost further, one must know that factors that insurers use to calculate cost of coverage. Some of the important factors that providers take into consideration are described below. Similarly, one can also ask for different types of discounts that companies commonly offer to their clients.

Important Factors Used to Calculate Cost of Premiums:

I.             Driving Record

II.           Age & Gender

III.          Marital Status

IV.          Prior Insurance Coverage

V.            Vehicle Use

VI.          Year, Make & Model of Vehicle

Discounts Offered by Insurers:

I.             Multiple Vehicle Policy

II.           Driver’s Education Courses

III.          Good Student Discount

IV.          Safety & Anti-theft Devices

V.            Low Mileage

VI.          Good Driver

With suitable use of factors and list of discounts, one can further bring down the cost of their premium and locate affordable coverage.