Car Insurance - Finding the Right Policy For You
The type of car insurance you choose will depend on the amount of coverage needed.
If you live in an area where you don't do a lot of driving, then you probably won't need an extensive amount of coverage.
On the other hand, if you are located in a big city where you are in constant traffic going to work and back home again, then you might consider as much coverage as you can get.
There are only three states that don't require proof if financial responsibility.
This means that not even liability insurance is required by these states, although it is a good idea to have this minimum amount of coverage no matter where you reside.
A policy that provides liability coverage will help pay for legal cost, if you are at fault for an auto accident and the other part decides to file a lawsuit against you.
This policy is key for protecting personal assets as well.
For instance, if you are at fault for a collision and you don't have the money to pay for the damages, then you will be forced to liquidate some of your assets to help pay for damages.
People who do a lot of driving and who also have many passengers most of the time find it more preferable to have comp and collision.
This type of policy is more extensive in the type of coverage it provides.
Not only is the policy holder protected, but also the passengers and any other people listed on the policy.
Comp and collision pays for medical bills, car repairs, and even damages to property.
Many people find that this type of coverage may be more expensive, but it is well worth the extra cost.
In order to keep monthly premium amounts lower with this type of coverage, you can have a high deductible.
This means that you will be responsible for a lot more money out of your own pocket to make up the difference that the Pennsylvania car insurance doesn't cover.
When your deductible is 1000 dollars, then this is the amount you are responsible for when it comes time to make repairs to your vehicle.
If you want to have lower monthly payments, by having a high deductible, be sure to have the proper funds set aside for any car emergency down the road.