When shopping for car insurance it is important for you to understand that car insurance policies are differentiated by the state in which they are issued. Coverage’s may be different and vary among the various states. Most car insurance companies use similar terminology in describing the varying coverage’s.  Understanding what is all means can present quite a challenge when car insurance shopping. Here is a general idea of what each component is and what is covered.

Personal Injury Protection known as PIP. Available in certain states and more commonly referred to as no-fault insurance, PIP will cover your medical bills and often lost wages form your job if you are disabled or unable to work as a result of an accident. There are other attachments that can be included in PIP protection, such as personal services. As with most car insurance coverage’s,  PIP is subject to limits , generally specified in your policy.

Liability Coverage. This coverage provides Bodily Injury and Property Damage up to a specific limit that you select when you purchase your policy.  The car insurance company will pay for damages to an injured person or persons and for property damage that you are legally obligated to pay as a result of an accident. Many people try to save money int his area, but you would be well advised to make sure you have adequate coverage in liability.

Medical Payments coverage applies no matter who is at fault in the accident. Generally the cost of reasonable and necessary medical care is the coverage, The coverage is often limited to a specified time period following the accident, again this varies, and the amount of coverage you choose when you purchase the policy.

Uninsured Motorist coverage pays for damages that you are entitled to recover for your bodily injury. In general, this coverage provides what you would have received from the other person’s insurance company had that person been insured. Uninsured Motorist coverage may also protect you if the person who caused the damage does not have enough insurance. This again is not a place to try and save money.

Economics have forced many people into hardship situations and the number of uninsured motorists is likely to climb as people are forced to make cuts in their family budgets. Uninsured Motorist Property Damage coverage is available in some states and provides protection for damage to property caused by a person without insurance.

Comprehensive coverage pays for damage caused by something other than an accident. This may be fire, theft, vandalism, hail or flood damage. Comprehensive also covers damage from an animal hit. Additionally, if your car is stolen, Comprehensive will generally covers the cost of a rental car, often subject to a daily limit. Deductibles apply and this is an area many people choose to raise their deductible to save money.

Collision Coverage is just what the term implies.  If your vehicle is damaged in a collision, either independently or with another vehicle, collision coverage pays for the damage to your vehicle. Collision involves a deductible amount you select when you purchase your policy. This amount, usaully $250 or $500, is the amount you are required to pay in the event a claim exceeds the deductible amount. Most insurance companies have higher deductibles and this makes car insurance more affordable for many people.

Roadside Assistance Coverage is becoming a very popular add on to car insurance policies. If your car breaks down due to a mechanical or electrical breakdown, dead battery, flat tire etc, Roadside Assistance covers those costs. Additionally towing to the nearest repair station is covered.

These are a few of the more common coverage’s available through most car insurance companies. The car insurance companies of today have become and ala Carte business and car insurance policies can be designed with your specific needs in mind.

Securing a policy that is affordable and provides you the peace of mind you desire is a balance. Too much coverage and you will end up paying for something you don’t need, too little coverage and you could be left holding the bag.

Talk to your agent of choice in depth and let them know exactly what it is you want from your car insurance coverage. Shopping for Car insurance with the major companies , such as Progressive, Geico , State Farm , Allstate or Nationwide will help you establish a baseline of coverage’s and costs so that you can make an informed decision about who you will choose for your car insurance coverage