An understanding of the types of coverages available is essential when looking for cheap auto insurance.
Read on and you'll know what to ask for.
Liability Cover Liability coverage is the most common auto insurance requirement in most states.
It is basically a cover that will cover any damages to property or bodily injury to third parties.
It does not cover the expenses of the insured.
Comprehensive Coverage Comprehensive coverage is intended to cover damage to (or the loss of) the insured vehicle resulting from causes other than collision such as storm damage, theft, vandalism and fire.
Collision Cover Collision coverage pays for any repairs your vehicle might need (or it's replacement at the current market value if it is beyond repair after the accident), regardless of who was at fault.
Uninsured/Underinsured Cover This type of coverage is mandatory in some states and covers damages sustained by you and/or your passengers if you are involved in an accident with someone who has little or no auto insurance or you are the victim of a hit-and-run driver.
GAP Cover GAP cover is intended to protect you if you are paying off your car loan and it is stolen or becomes a total loss following an auto accident and the amount you have remain on the loan is more than the insurer's valuation.
PIP (Personal Injury Protection) Otherwise known as No-Fault, it gives cover for immediate and subsequent health care and funerary costs in the event of a traffic accident regardless of fault.
Pay-Per-Mile If you don't use your car that much and you don't mind your car insurance company fitting a tracking device to your vehicle, then another type of coverage you may want to consider is Pay-Per-Mile.
As the name suggests, your insurance cost under this scheme is based upon the number of miles you drive.
It is still relatively new, and is in fact only available in a few states at the moment.
In the end, getting the best premium and coverage that fits your budget is a balancing act.