Although saving you money by helping you find cheap car insurance is one of our goals, helping you get the right policy to meet your needs is equally important to us. To that end, we'd like to offer some information that will help you find the best insurance policy for you. Car insurance can be a pretty confusing thing. But when you break it down, there's not much to it. So let's break it down. We'll start with the people involved.

Who is At Fault?

In any accident there may be damages and injuries caused by you and there may be damages and injuries caused by others. If you are determined to be the cause of the accident, you are said to be at fault. In some cases it is obvious who is at fault. In other cases, it is not so obvious. Sometimes more than one person may be considered partially at fault for the accident. Once fault is established, insurance can kick-in to pay the bills.

Physical Damage Coverage

This covers the cost of repairing damage to your vehicle. This is split into two different coverages: collision coverage and comprehensive coverage. Neither of these are required by law; they are both optional.

Collision coverage covers the cost of repairing your vehicle if your car hits another vehicle or object and you are at fault. In this case, insurance will pay the cost of repairs, minus the deductible. If you don't have collision and you hit a deer, a tree or even another car, you are on your own for paying your repair bills.

Comprehensive coverage covers other types of damage that are not collision related. Typically this covers losses due to fire, theft, flood and many other natural and unnatural events. Again, if something happens to your car, insurance will pay for repairs, less your deductible. If your car is stolen and you don't have comprehensive coverage, you will not get anything from your insurance. If you do have comprehensive, your insurance will usually pay the going book value of your vehicle, minus the deductible.

With both of these, your deductible comes into play. If you have, for example, a $500 deductible and your vehicle sustains $2000 in damages, your insurance will pay $1500 while you will be responsible for the remaining $500. Although having a high deductible may not sound like a way to save money, a higher deductible comes with a lower monthly cost. So raising your deductible is often a good way to lower your insurance rates.

Although physical damage coverage is not required by law, it is usually required by lenders. If your vehicle is leased or financed, the lender will usually require you to carry both collision and comprehensive coverage. This reduces their risk of losing money if your car is damaged or stolen.

Liability Coverage

Your liability coverage is what covers other people when you are at fault. If you are in an accident and damage other people's property or injure other people, it is your liability insurance that covers their expenses.

Bodily injury liability covers medical expenses for injuries to other people. It can also cover legal defense for lawsuits from people you've injured. Bodily injury liability coverage is mandatory in most states. While you can save money by getting only the state minimum required coverage, you should give some serious consideration to this. Lawsuits resulting from serious injuries or death can jeopardize your personal assets. So you want to make sure you have enough coverage.

Property damage liability coverage pays for property you've damaged in an accident. Usually this is another vehicle, but could also include houses, fences, and just about any other property you can damage with your vehicle. Like bodily injury liability, it also covers defense of lawsuits. Again, you want to make sure you have enough coverage.

Beyond the Basics

Those are the basics, but there are a lot more coverages available. Many of them vary widely from state to state. For instance, personal injury protection, medical payments and first party benefits are three different types of coverage that cover bodily injuries sustained by you and people with you when you are in an accident. But again, these vary by state, so it is best to discuss these with an insurance professional licensed in your state.

Get a Quote

Now that you know the basics, let us help you get the best insurance for your needs at a price you can afford. Enter your zip code in the form above to get started with your online quote. Or click here to start saving.