Car Insurance

Car insurance is a contract between you and an insurance company. The specific terms of the contract are contained in it, but, unless you understand insurance gobbledegook, you probably won't understand the policy even if you read it.

In this and the related articles, I simplify the subject. Using the links on this page, you can learn all about the 9 main insurance coverages, the 6 steps to follow when buying insurance and my 17 tips for saving money when you are buying insurance for your vehicle.

Coverages

These are the 9 most common car insurance coverages that are offered . . .

Liability. Pays what you owe because of injuries and property damage that you cause.

Uninsured Motorists (UM). Pays you if you are injured by a driver that does not have insurance. You'd be surprised how many of those there are.

Underinsured Motorists (UIM). Pays you if you are injured by a driver with too little insurance to fully compensate you for your injuries. You'd be surprised to know how many of these there are, too.

Personal Injury Protection (PIP). This is the primary coverage in no-fault insurance states (there are 12 of those). It pays you your medical bills and loss of income after a car accident. In some states with fault insurance systems, it is offered as an optional coverage.

Medical Payments (Med-Pay). Pays you for medical bills incurred as a result of a car accident.

Collision. Pays to repair your car if it is damaged in a collision with another car or an object.

Comprehensive. Pays to repair your car if it is damaged as a result of specified causes other than a collision, such as theft, vandalism or accidental glass breakage.

Towing. Pays you for the cost of towing your vehicle when it is disabled.

Rental Reimbursement. Pays the cost of a temporary rental car while your car is being repaired.

Click here to learn all about the different car insurance coverages.

Buying Car Insurance

When buying insurance for your car, be sure to follow these 6 steps . . .

1. Determine which coverages and what amount of coverage to buy.

2. Get multiple quotes, using online and off line inquiry systems.

There are several online sources that I like for getting car insurance quotes.

One is Esurance which gives you prompt multiple quotes. Click here to learn more about Esurance easy online car insurance .

If you prefer getting quotes from local agents who can answer your questions, then I recommend InsureMe. Click here to learn more about InsureMe. InsureMe can also give you quotes on other types of insurance. One way to save money is to get different types of insurance . . . such as auto and home . . . from one company.

3. Compare the quotes.

4. Chose the right coverages, price and insurance company.

5. Read your policy after you receive it. (I realize there's not much chance that you'll do this, but I tell you the one part of the policy that you should definitely read.)

6. Cancel your old insurance after your new coverage is in place.

Click here to learn all about the 6 steps to follow when buying car insurance.

Car Insurance Savings

To save money when you buy insurance for your car, you should do such things as choose only the coverages that you need, select the right deductibles, use multiple car discounts and multiple policy discounts.

Click here to learn my 17 tips for saving money when you buy insurance for your car.