Get an auto insurance quote – Motorists have many options when it comes to the protection that can be purchased for their vehicles and themselves; some are required by law and some are optional. The majority of states follow the Financial Responsibility Law which mandates that drivers maintain Liability policies consisting of bodily injury and property damage to compensate third parties from accidents they have caused; these states set a minimum limit which must be purchased, but consumers have the option to purchase higher limits which should be considered because it may help avoid future financial burdens. States such as California have set liability limits of $15,000 for bodily injury for one person, $30,000 for bodily injury to two or more people and $5,000 for property damage; as an example, if an individual were to cause more than $5,000  in damages to another party’s property with their vehicle may be held accountable for any remaining compensation due to the property owner. It is often suggested that motorists raise their liability limits; preferably to $100,000, $300,000 and $50,000.

Many states follow the No-Fault law requiring motorists to carry Personal Injury Protection (PIP) which aims to ensure that compensation is in place for injuries regardless of who is responsible for causing a traffic accident. The state of Florida requires drivers to carry $10,000 in PIP; just as financial responsibility laws may not mandate adequate protection, the $10,000 limit in FL can easily be exhausted if the motorist sustains a serious injury and it may be wise to raise the limit. In some states this auto insurance coverage is optional and is often referred to as Medical Payments; for those who do not have a health or life insurance plan may benefit from this because it will pay for medical expenses and funeral costs resulting from a traffic collision for the policyholder, family members and passengers.

Additional Options for auto insurance Coverage

Uninsured Motorist and Underinsured Motorist is required by certain states such as North Dakota, but is optional in many others; generally the limits necessary must meet the minimum liability limits of the state. According to the North Dakota Guide to Automobile Insurance motorists must carry a minimum of $25,000 and $50,000 for bodily injury; other state limits may vary. For those who reside in a state that does not require this type of car insurance coverage may want to take it into consideration; this will pay for injuries sustained by the policyholder, family members and passengers resulting from a traffic accident caused by a motorist who does not have a policy, is underinsured or if victims of a hit-and-run. This will also pay for injuries of the policyholders and family members living in the household if injured by a collision as a pedestrian.

A common addition to policies is Comprehensive and Collision which offers protection if the insured’s vehicle sustains physical damage. The majority of individuals purchase this coverage because they are financing a vehicle and their financial institution will require that the vehicle be covered as part of the loan agreement; this is to protect the lender’s investment, but also benefits the policyholder since they would making payments on a damaged vehicle or have to pay for repairs out of their own pocket. This can also be beneficial to those who own high end vehicles or classic cars due to the fact that repair costs can become quite expensive or if the vehicle is stolen, replacing it can be quite costly.

Additional options to choose from include Rental and Towing Reimbursement which can be purchased for a minimal additional premium. Rental reimbursement will pay for the cost to rent a vehicle for a set daily amount and specified number of days while a vehicle is being repaired or if stolen and awaiting compensation. Towing reimbursement will pay for the cost of a tow when a policyholder’s vehicle becomes unable to operate. Although some coverage is mandatory, some of the optional add-ons can be quite beneficial; motorists should take the time to see if any additional protection can benefit them and compare quotes from various companies to see if it can be afforded.