Auto insurance quotes: understanding the insurance types

To understand the auto insurance quotes, we need to start with a distinction between the at-fault and no-fault states. In the majority of states, the law of tort applies and, if you're at fault as the driver, you pick up the bill when you injure other people or damage their property. But in a small number of states, people insure themselves, i.e. the insurance companies pay people when they suffer loss or damage no matter who was at fault. The international experience has been favorable to no-fault, showing reduced premiums and faster settlement of claims. In America, the level of fraud has made this an expensive form of insurance.

In at-fault states, the basic form of insurance is called liability, i.e. you are liable to pay the cost of medical treatment for those you injure and of repairs for the property you damage. In all but one US state, liability insurance is mandatory. You will commit a criminal offense if you drive on a public road without a current liability policy. In some states, the penalty is your vehicle will be held. If you do not pay for the minimum insurance, it will be sent to a crusher.

The cover for your own vehicle in the auto insurance quotes comes under two headings. The first is collision. If you hit someone or something while you are driving, the cost of repairs will be covered unless that will be more than the fair value of the vehicle. If the repairs are too expensive, your vehicle will be totaled and you will be paid the fair value so you can buy a replacement. Check the terms of the auto insurance quotes to see whether the collision cover also pays for towing, storage of the vehicle, and a replacement rental while you wait for repairs. The second is comprehensive which pays out if your vehicle is lost or damaged but not in a collision. This covers a wide range of different circumstances from being stolen through swept away in a flash flood. Check the detail of the auto insurance quotes to see exactly what's included and what limitations and exceptions are applied. For example, you might find your cover against water damage is limited if you live in a flood plain, or wind damage if there are regular tornadoes and hurricanes.

Understand your auto insurance quotes »

Auto insurance quotes should give you clear and accurate information about the policy on offer. If the auto insurance quotes are not clear, don't buy unless someone explains what they mean.

Auto insurance quotes:
understanding the insurance types »

To understand auto insurance quotes and make the best choices, you must understand the basics of the cover available. Here's a guide to the cover offered in auto insurance quotes.

Keep auto insurance quotes low by preventing theft of your vehicle »

Keep auto insurance quotes low by preventing the theft of your vehicle. There are some cheap options that earn discounts and keep the auto insurance quotes affordable.