Standard Insurance – Good to go insurance

standard insurance

Often times consumers end up asking for standard insurance, but this can leave them with insurance that might be too expensive for their budget or coverage that is inadequate. The insurance industry seems to have a language all to itself and the entire process can leave people really frustrated. For many people, buying car insurance can be confusing and overwhelming.

When you are building a standard insurance policy, the initial step is to figure out your state minimum auto insurance requirements.

This will give you a starting point for the coverage amounts you need and also keep you legal in your state.

Even though each state has different insurance mandates, all auto insurance policies will have common elements such as liability and personal injury protection in the policy.

 Standard Insurance industry for auto

Lets take a closer look at standard insurance for auto coverage and the different components that make up a policy. Note that each coverage category is priced out separately and then the total coverage amount is calculated.

1. Liability coverage for bodily injury
liability coverageMany people get confused and think liability insurance covers them after an accident. In actuality, liability insurance will apply to injuries you or a driver you designate, inflict on another person.

If you have listed certain designated drivers on your policy, such as your spouse or friend, then they too will be covered for liability when operating your vehicle.

Although the state minimums might be cheap, be careful before you purchase these limited amounts of coverage. This is because if you have significant assets to protect, in the event you caused an accident, you could very well get sued for a larger amount than the policy covers you for. This is why standard car insurance is different for everyone and really boils down to protecting yourself.

2. PIP or Personal Injury protection
personal injury protectionLike the name implies, PIP will insure you and your passengers if you are involved in an accident. Personal injury protection can even cover loss of employment, medical related costs and even funeral expenses.

For most standard auto insurance policies, PIP protection is a must have This is because so many people drive without any insurance and PIP will cover your medical costs, regardless if the other driver has any coverage.

3. Collision coverage
This type of coverage will pay for damages done to your automobile as a result of an accident involving another vehicle. It can also be broader in scope and cover incidents such as potholes. You can purchase collision insurance typically in amounts ranging from $250 and up to $1,000.

collision coverageRemember that the higher your deductible is, the cheaper your insurance premiums will be. Collision insurance will repair your vehicle no matter who was at fault in the accident.

If you were not at fault for the accident, your insurer will more than likely attempt to get reimbursed for the amount paid out. If this happens, then you will also likely get your deductible refunded to you. Collision insurance is a solid building block for a standard car insurance policy.

4. Liability coverage for property damage

This liability coverage will payout reimbursements as a result of damage your vehicle inflicted on a persons property, such as a busted mailbox, fence, barn, etc. If you feel most comfortable having this added coverage, then purchase a small amount of standard property damage protection.

5. Comprehensive coverage
comprehensive coverageAs the name implies, comprehensive insurance will cover your vehicle for just about any type of damage that occurs. This can include but is not limited to golf balls that shatter a window, hail damage, animals that strike your vehicle, criminal vandals that slash your tires and wind damage to name a few.

Most often a standard comprehensive insurance package will be sold in amounts ranging as low as $100 to around $300. As with other coverage types, the greater your deductible amount, the less your premiums will be. If you seem to always be in the wrong place at the wrong time and can afford it, comprehensive insurance is smart protection against the unexpected.

Cheap Standard insurance

The best way to find standard insurance at affordable rates is to go online and compare as many quotes as you can. Apply for at least 10 insurance quotes so you can compare a broad range of prices. You more than likely will be surprised how varied the pricing levels are and this is why it is so important to get several competing quotes.
Remember to also check the financial strength of any insurer you might buy a policy from. Just like any other business, insurers go under all the time. Use sites like A.M Best to research the company’s financial solvency. If a company has a great rating and has quoted you a cheap rate, then you’ve found a winner.

by Toni Kohonen