Vehicle Insurance

Car Insurance Policies: Everything You Need to Know and the Top Providers

 

Anyone who actively operates a motor vehicle will need to have some type of motor vehicle insurance (unless you reside in Virginia, Mississippi or New Hampshire). The intention of such policies is to protect you (the driver) and any third parties who may become involved in an accident. However, other instances such as fire and theft can be added the such bundles. This will depend on your unique needs as well as the vehicle in question. Let's quickly examine of the types of policies that you can choose from before moving on to looking at the top providers on the market today.

 

The Basic Types of Car Insurance Plans

 

We can break car insurance policies down into three main categories:

 

  • Liability insurance

  • Collision insurance

  • Comprehensive poilicies

 

The first type is known as liability. In the majority of states, this is the minimum amount of coverage required by law. Liability plans are intended to financially protect the driver in the event that he or she is involved in an accident. These bundles are also able to partially protect victims in regards to medical bills and lawsuits. However, we need to keep in mind that the levels of coverage are not very high. Those involved in a major incident are still likely to pay hefty out-of-pocket costs. While this is the most basic plan, it is often wise to upgrade to a policy which provides additional levels of protection.

 

Collision insurance is primarily intended to provide you with extra coverage if your vehicle is damaged due to an accident. This is in addition to the areas mentioned in the previous paragraph. As you will be better financially protected, the premiums tend to be slightly higher. Collision insurance is often a good idea to if you use your vehicle for work-related purposes or if you are otherwise constantly on the road.

 

Comprehensive packages are the third and final variety. These offer the greatest level of protection due to the fact that they address other instances besides accidents alone. Fire, theft, vandalism and even some weather conditions are often included within these plans. You might also be able to encounter comprehensive policies that can be used with a group of vehicles (such as fleet van insurance for a construction company).

 

How that we have taken a look at the three most common types of car insurance, how can you find the best plan and are there any ways to lower your premiums? Let's take a closer look.

 

Saving Money While Obtaining the Most Relevant Policy

 

The first thing that you will need to take into account involves your driving record. If you have obtained many tickets or should you have been involved in previous accidents, expect to pay higher premiums. The same holds true for new drivers, as many insurers will place them at a higher risk of being involved in an accident due to their lack of experience. One way to lower your premiums is to opt for a defensive driving course. Many states (such as New York) will provide discounts as high as ten percent if you successfully complete these classes. Of course, it is also a good idea to chop around. This brings us to our next point.

 

What should you look for in an insurance provider? The rates are obviously important, so check out whether or not you are able to pay the plan as a lump sum as opposed to monthly premiums. Further discounts may be obtained in such cases. Ask if your rates will be lowered if you possess a clean driving record. Determine how much these rates will rise if you happen to become involved in an accident (particularly if it was proven that you were not at fault). Finally, what are others saying about the provider? Try to answer these questions?

 

  • Are customers generally happy with the services that they receive?

  • How many points of contact are available if you have a question?

  • Will you be assigned a dedicated insurance agent?

  • Is your policy valid if you need to travel to a different state?

 

Knowing the answers to these questions will help you to make an informed choice when the time is right.

 

What are the Top Car Insurance Providers in the United States?

 

At the time that this article was written, the top eight providers (by market share and the number of customers) are:

 

  • State Farm

  • Berkshire Hathaway

  • Allstate

  • Progressive

  • Farmer's Insurance

  • USAA Insurance

  • Nationwide

  • Liberty Mutual

 

Another reason why these firms have made the list is that they tend to offer policies regardless of where you live in the United States. Please keep the suggestions mentioned throughout this article in mind if you hope to come across the most appropriate policy for your needs.

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