This
guide contains:
Background on auto insurance
Features
to look for in auto insurance policies
How
to find the best auto insurance for you
This
independent guide was created to help you understand
the basics of auto insurance and to help you choose
the right auto insurance policy for you. We do not sell
any auto insurance policies ourselves, so you can be
confident that all of the information in this guide
is independent and unbiased.
Background
on auto insurance
If you currently own or are considering the purchase
of a vehicle, you are required by state law to carry
auto insurance. Most people select their auto insurance
policy based on price (premium), but there are other
important factors that should be taken into consideration
when purchasing auto insurance. This web site was created
to help you understand how auto insurance works so that
you can get the auto insurance policy that's right for
you.
What
are the most important features of auto insurance?
Auto insurance requirements and policies may differ
from state to state, but most auto insurance policies
share the same common features. Together, these features
afford protection for property damage, damage to the
automobile, and injury to any persons involved in the
incident.
Liability
Coverage
Liability auto insurance coverage is typically considered
the most important type of auto insurance coverage,
and it protects you against the costs to other persons
and/or property in an automobile accident. Liability
auto insurance actually consists of two different policies,
bodily injury liability, which protects you from the
cost of personal injury to others, and property damage
liability, which protects you from the expense of damage
you cause to any physical property. Liability auto insurance
is mandated by most state auto insurance laws and requires
a certain dollar level of auto liability insurance.
Liability
auto insurance is basically described by three numbers
in a format like: 100/300/100. These specific numbers
are known as the 'split limits' of liability insurance,
and in this case they would refer to:
