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Do all insurance companies provide same offers?

Although all the auto insurance companies provide similar offers, but the benefits that a customer gets could be different depending upon several factors:

These are basically the amount of coverage normally based by state (and of course, by preference). This difference also lies in the pricing and offers for new and existing customers or for a person seeking to switch the current insurance provider. These discount factors includes driving records, claims history, policy years and many more which differ from company to company.

What is Premium?

A regular monthly, quarterly, half yearly or yearly amount paid to an auto insurance company to get coverage is know as premium. This is basically the fee breakup which a customer can conveniently pay.

By paying this premium, the company will ensure that it will pay for any items covered in your auto insurance policy, for example, third party liability, collisions etc.

What are Deductibles?

This is a small amount of money that a customer has to pay to the company before an insurance policy takes over.

A deductible works like this:

If unfortunatey an accident occurs that requirs a repair of $2200 and the set deductible by the company is $200 then the customer has to pay $200 and the remaining amount of $2000 will be covered by the company when customer goes for a claim.

Selecting the Coverage

The coverage you want depends totally on your preference. There are many factors on which you should decide that what all coverage you want under your auto insurance policy. These factors could be your vehicle usage, commercial or private, the area you live if its more prone to accidents due to floods, heavy rains, showfall etc, and other factors like your vehicle is used for family, personal or work related use.

What Are Available Coverage?

Normally there are 3 types of coverage available: Basic, Extended and Premium Auto Insurance Coverage.

• Basic Coverage

This offers the most important or standard insurance. It is comprised of Collision, Liability and Comprehensive coverage. Collision coverage handles accidents regardless of who is at fault. If you get into a fender-bender with another motorist, hit a post while backing-up from the driveway or perhaps open the door and it gets hit by on-coming traffic. That’s what Collision will cover, whether the car is for repairs or even replacement. Liability on the other hand covers third-party costs, it is applicable when you are at fault. It may not cover your own expenses and your car, but it guarantees that the third-party is taken cared of. Lastly, Comprehensive coverage is for non-collision related incidents. Natural disasters, a tree branch falling on your car, theft, fire, etc.

• Extended Coverage

These are add-on coverages that enhance your insurance policy. Options include coverage for Medical Expenses and/or Personal Injury; Incidents involving motorists who are Uninsured (no insurance) or the Underinsured (not enough insurance).
Extended coverage can even take care of vehicles acquired through a loan/financing. This is called GAP insurance (Guaranteed Auto Protection). With the understanding that a vehicle loses around 25% of its value once it is driven out of the dealership, your auto insurance will only cover this value – leaving you with the remaining percentage to pay on your own. This add-on works to cover that price “gap” by not only factoring in the lower market value, but also the remaining balance to be paid on the vehicle loan.

• Premium Coverage

This coverage is for the most cautious type of car owner. This covers everything under the sun, whether you require coverage for road-side assistance, mechanical breakdowns, aftermarket/custom equipment, original equipment manufacturer (OEM) endorsements, glass repair/replacement and more.
The concept of premium insurance is based on what can only be called as “ready-for-anything” insurance.

State Requirements:

Different states enforce and require different coverages. Each State has set a “Minimum Insurance Requirement”. Of course, it does not cost much to go above the minimum insurance requirement to make sure you’re properly (and safely) covered.

GUIDE: The numbers presented in the table below follow the XX/XX/XX format.

1st XX is for Bodily Injury Limit on a Per Individual Basis 2nd XX is for Bodily Injury Limit on a Per Accident Basis 3rd XX is for Property Damage Limit

So numbers like 15/25/10 mean – per individual Bodily Injury Limit is $15,000, per accident Bodily Injury Limit is $25,000 and the Property Damage Limit is $10,000.

Here are the State Minimum Insurance Requirements (see Table):

NOTE: State Requirements Taken from

How to Choose Auto Insurance Company?

Choosing a service provider depends upon your coverage needs and budget.

Once you have decided what all coverage you need and what is your budget, you can compare quotes, offers and discounts that meets all your requirements and then you can decide which one to go with.

Companies with round the clock customer service, online claim assistance, easy to access websites, and a wider network is also an important point to consider.

Before making a decisions, it is advised to do some online / offline research or do a consultation.

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