How to Read Car Insurance Quotes

front view of laptop with car insurance on screen

When drivers want to get the most coverage for their premium, it’s important to compare quotes from different agencies. An insurance quote is an estimate of how much you’ll pay based on liability coverage type, deductibles, liability limits, and possible service add-ons. To get the car insurance quotes California residents can depend on, take a good look at what the quote entails to get the best deal.

Don’t Just Focus on the Cost

A cheap quote is one thing, but good protection can also save you money in case of an accident. You generally pay more when you have fewer coverage limits and higher deductibles. There are three main aspects to examine:

  • Types of liability insurance
  • Coverage limits
  • Deductibles or out-of-pocket costs

The right insurance policy will have the most comprehensive coverage for the most competitive price. Make sure you have enough protection to cover everything important to you. A plan from one company may not have the same benefits as another of the same price point, so be careful to look at the fine print.

Types of Liability Coverage

California, like any other state, has unique car insurance laws. It is a tort liability state, which means that the one responsible for the damage will have to reimburse the other party. That being said, you surely would benefit from a plan that has both bodily injury and property damage liability.

These products protect you in times when you’re at fault for an accident. Bodily injury liability covers the cost of injuries to one’s person, while property damage helps pay for the other person’s vehicle and damaged structures. Lacking either type of insurance puts you at risk of paying for damages from your account.

Coverage Limits & Deductibles

Your liability coverage limit is the maximum your insurance company pays for covered damages. It usually appears as a set of three numbers, such as 25/50/10. These figures represent bodily injury per individual, bodily injury per incident, and property damage per incident.

This means that your plan would cover $25k in injury-related expenses per person and a total of $50k in injury-related costs for each incident. The final figure signifies that the insurance covers you for $10k in property damage per incident.

The lower the coverage limit, the lower your premium is likely because the costs can exceed them, which means you need to pay the rest of the damages yourself.

Deductibles

Deductibles, or out-of-pocket costs, are what you must pay before your benefits kick in. A high deductible means that you may pay a lot more to get financial assistance per incident; however, this can also be a benefit if you’re a low-risk driver and can save on the lower premiums.

At Cost-U-Less, we will match you with the right coverage that protects your interests and fits your budget. Contact us at (800)-390-4071 to get a quote by phone or visit one of our offices.

Works Cited:

“Car Insurance California.” Cost-U-Less, www.costulessdirect.com/car-insurance-quotes-online.

“Contact Cost-U-Less.” Cost-U-Less, 18 Dec. 2020, www.costulessdirect.com/contact-us.