Auto Insurance Quote Comparison

This site is primarily about auto insurance quotes, but in order to understand differences between different insurance offers, you need to know the differences between different coverage packages.

Your auto insurance policy can include six different coverage options and each coverage is priced separately. We know (Property Damage) Liability, Collision, Comprehensive, Uninsured and Underinsured Motorist coverage, Personal Injury Protection (PIP) and Bodily Injury Liability. Let’s take a look at each one of them separately.

1.) Property Damage Liability

Property Damage Liability is a foundation of any auto insurance policy – it pays for damage you (or someone else with your permission) causes to someone else’s property. This property is usually other vehicle, but it can be practically anything (lamps, mailboxes,…).

2.) Bodily Injury Liability

This coverage applies to the injuries that you (policy holder) cause to someone else (persons in other car). These expenses can be quite high in case of major accident, so it’s good to have high enough coverage for this Liability (it’s recommended to have higher coverage than required by State).

3.) Collision

This coverage pays for damage on your car resulting from a collision with another car or object if you were to blame for this collision (otherwise the damage would be paid from Property Damage Liability from another car). It also covers the damage of flipping over and damage caused by potholes.
Collision is usually sold with deductible ($250-$1000) – higher deductible means lower insurance cost, but also higher risk for you. Deductible can be defined as an amount of money you need to pay every time you enforce collision coverage. So, in case of damage, collision coverage will reimburse all the damage minus deductible. You will always pay the same deductible, no matter how big the damage will be so it’s good to calculate how much deductible you can afford to pay.

4.) Comprehensive

Comprehensive coverage is some kind of completion of collision coverage, because it reimburses you for the loss due to theft of the car and in case of damage, which resulted in something other than in collision with another car or object. Comprehensive covers damage in case of earthquakes, fire, falling objects, explosion, windstorm, flood, vandalism, contact with animals and other things you can’t influence. It also covers the damage of cracked windshield. Deductible is also present in comprehensive coverage (usually between $100 and $300), but you can also get windshield coverage without deductible.

5.) Uninsured and Underinsured Motorist Coverage

This coverage will reimburse you if you get hit by the driver with uninsured or underinsured car. You will also get the damage paid in case of hit and run accident.

6.) Personal Injury Protection (PIP)

This coverage is also called “Medical Payments” and pays for the treatment of injuries to the driver and passengers of the policy-holder car. It can also covers lost wages and funeral costs.

I hope that understanding these differences will make your insurance decision easier, better and cheaper. Have fun!

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