Just before rushing off to buy auto insurance, you may want to equip yourself with some of this knowledge. When buying auto insurance, there are a number of other components that can add to the original premium to make it look a bit expensive. These will include:
Bodily Injury Liability
This part of the policy is actually claims against you. If and when your car injures or kills someone, this part of the policy will help cover for the loss and damages.
This part of the policy is not always included. It is best to talk it over with your insurance broker or company without making assumptions. This part of the policy will pay for injuries or death to yourself or any other occupant of your car in the event of an accident.
Property Damage Liability
When liability coverage is being discussed, it affects every other party excluding you. This means this part of the policy will take of claims of property damage or loss caused by your car in an accident.
This is usually an important part of the auto insurance policy. This part of the policy would pay for all damages to your car. The amount of damage will equate to the value of the car. This part of the policy has a deductible attached to it. Like every deductible, the higher it is, the lower the premium.
Beyond accident, you vehicle is still subjected to other forms of damages. This will include fire, theft, vandalism, flood, etc. Just like collision coverage, this coverage also has a deductible attached.