Car Insurance Quote Basics

By Barry H Brenner

There's no question that reviewing a car insurance quote can be confusing, particularly if you're purchasing car insurance for the very first time. Following are the basic components of car insurance, to help you understand how to interpret the car insurance quotes you receive.

Liability Insurance - Liability insurance is the coverage that insures the other driver in the event that you are responsible for an accident. In most states, liability insurance is required. It covers property damages, including automobiles and other property. Liability insurance also covers medical expenses, lost wages and pain and suffering. Keep in mind that liability coverage insures the other party and will not pay expenses related to your medical bills or damage to your automobile.

Collision Coverage- Collision coverage is not required by law and provides protection for your property and medical expenses in an accident. If the accident is deemed to be your fault, you will need this coverage for automobile repairs or replacement. Though the law does not require collision insurance, your bank will require it if you have a car loan. Collision coverage insures that the bank will get paid for the remainder of the amount owed on the vehicle if it is totaled in an accident. If you are in an accident but you are not at fault the other party's liability insurance should pay your expenses.

Comprehensive Coverage - This is one of the most misunderstood parts of a car insurance quote. It does not cover damage from an accident; so many drivers don't feel that they need it. However, comprehensive coverage insures your vehicle from damage sustained from a flood, wind or hail. This coverage also covers your vehicle if it is vandalized or stolen.

Medical Coverage - Medical coverage covers medical expenses in the event of an accident. It will typically cover expenses regardless of who is at fault.

Uninsured and Underinsured Motorist- Uninsured and under insured motorist protects you in the event that you are in an accident caused by a driver who does not carry liability insurance. Even if your state requires that all drivers carry liability insurance, this insurance can provide much needed financial coverage in the event the responsible person in an accident cannot cover your property and medical expenses because their insurance has lapsed.

Optional Add ons - Your car insurance quote will also likely include a few optional items that you may want to consider if they're in your budget. These include:

• Rental Car Reimbursement - this coverage provides funds toward renting a car while yours is out of commission due to an accident.

• Roadside Assistance - this coverage provides you with a 24 hour a day number you can call for assistance in the event of a flat tire or other breakdown.

• Extended Warranty - Some insurers will offer extended warranty on your car insurance quote. This helps cover the cost of automobile parts needed for repairs. The repairs need not be related to an accident. This coverage is very similar to the type of extended warranty many people purchase from the car manufacturer at the time of purchase.

Choosing the right elements from your car insurance quote can take some time. But, with a little research and comparison, you should be able to put together a car insurance policy that works for your needs and your budget. You can find more information on choosing the right car insurance for you, log on to http://www.cheapcarinsurancequotetips.com Barry Brenner is a licensed car insurance agent specializing in low cost insurance.