Like most other forms of insurance coverage, car insurance provides financial safety in the event an accident takes place. With so many different types of car insurance available, consumers can quickly get overwhelmed when trying to make a decision on which policy to buy. Fortunately, the internet provides all the information needed to select the policy that best fulfills a person’s needs. This makes the process of buying car insurance online a fairly easy task.
Minimum Coverage Requirements
Since car insurance requirements are regulated by state law, minimum coverage requirements vary from one state to another. That being so, certain minimum coverages still apply for most all states. At the very least, most states require liability insurance which covers any damage and/or injuries caused when a driver’s at fault. This coverage only extends to damages and injuries to the other car, driver and passengers and not the driver’s car or any passengers in it.
Certain states follow a no-fault rule when it comes to car accident coverage. These states require drivers to purchase no-fault insurance which means drivers cover their own accident costs regardless of who’s at fault. States with no-fault insurance requirements in place include:
- New Jersey
- North Dakota
- New York
While purchasing the minimum coverage requirements ensures a driver is abiding by the law, any one car accident can cost considerably more than state mandated minimums require. Recommendations from the Insurance Information Institute advise drivers to carry a minimum of $100,000 worth of bodily injury protection for each person along with $300,000 in coverage for each accident.
Coverages to Consider
While each state does impose its own auto insurance guidelines, it’s still possible to have a run-in with an uninsured motorist. For this reason, drivers should seriously consider purchasing uninsured driver coverage. In most states, the cost to add uninsured drivers insurance runs around $40 a year, which is fairly inexpensive compared to other types of car insurance.
Drivers concerned about repair or replacement costs in the event of an accident may want to consider adding collision and comprehensive coverage to their policy. These types of car insurance require policyholders to pay a deductible or out-or-pocket amount before insurance benefits kick-in.
Collision and comprehensive coverage differ in that collision coverage pays in the event of an accident with another car. Comprehensive coverage pays for damages not caused by collisions with another car. This would include things like vandalism, fire, theft, storms and falling objects. Pay outs for comprehensive coverage are based on a car’s current value and not the purchase price.
In cases where a car is financed through a bank or lending agency, it’s likely the lender will require both collision and/or comprehensive coverage as a condition for the loan. This is something to keep in mind when shopping for online car insurance.
Buying Car Insurance Online
Shopping for auto insurance online offers a fast and easy way to get quotes from several different companies at the same time. It’s always a good idea to have all needed information at hand before starting. This includes:
- Types of coverages needed
- Car information make, model, VIN, mileage and license plate number
- Driver’s license number
- Driving history – dates of past accidents; 7 to 10 years back is sufficient
- Personal information – social security number and address
Enter the phrase “car insurance” into a search engine and pages of companies will come up. Well-known companies or companies used by friends and family are the best ones to check out. Many companies offer price comparison quotes with other well-known insurers. This can greatly reduce the amount of time spent looking for the right policy plan and company.
After deciding on one or more companies, click the link to their website and select the most suitable plan. After purchasing a coverage plan, most company sites allow users to print off temporary insurance cards to carry until the official cards come in the mail.
All in all, once a person decides on the types of coverages needed, buying car insurance online becomes a fast and easy process.