by Edwin Ivanauskas | Tags: Personal Finance, Insurance

Imagine getting into your car, driving and then suddenly someone side swipes your car. What would you do? What if you or the other driver had no insurance? There are several things to look for in car insurance these could save you thousands of dollars.

It's the Law - Liability Insurance

If you own a vehicle then it is law that you have at least liability insurance on that vehicle. This covers the vehicle of the other driver if you were to hit them. Your car would not be covered but theirs would be. This is the minimum insurance that you must have on your vehicle at all times.

Under-Insured insurance

If someone hits your vehicle and the other driver did not have enough insurance to cover your damage on your vehicle then this would cover your vehicle.

Full coverage

Full coverage insurance is meant to cover your vehicle and someone else's if you are in a wreck and at fault. Read your policy carefully, full coverage is based on how much you base your coverage at. You may have a five hundred or a thousand dollar deductible that you have to pay to even get your coverage to kick in and if you have your coverage capped out at forty thousand and you were to hit a fifty thousand dollar car, then you are responsible for the other ten thousand dollars.

Comprehensive

Comprehensive insurance is meant to protect your vehicle from non driving related damages. This can include anything from vandalism and theft to weather damage.

Medical

If you, the driver of the other vehicle or perhaps a passenger of yours gets hurt, the medical will take care of medical bills, time off from work, and fees associated with it. Make sure that you know the maximum payouts on this or you may find yourself under insured.

Property Damage

This portion of your auto insurance protects you against damage to property such as hitting a house, retail store or any non-moving property that can be damaged during an accident.

Uninsured

Uninsured insurance usually goes with the under insured but both are equally important, as this will protect your vehicle in case the other driver was not insured.

Exclusions

Most auto insurance companies do not have exclusion policies. An example would be if you married someone with a suspended license then you may not be able to get insurance through that company even though you have a perfect driving record. If they do have an exclusion letter, you would need to sign it stating you will be the only one driving your vehicle.

When looking for auto insurance check to see if you receive discounts for being ticket free and also for multiple vehicles. If you have a student driver, you may also receive a discount based upon his grades which is usually a B or higher.

Auto insurance is based on the year and make of your vehicle, your driving record, and your age. Get at least three separate quotes before deciding which auto insurance is right for you. Make sure that you protect yourself with enough coverage as well as keeping the deductibles low enough, that you can pay them in case of an accident.

A final note is to consider add towing insurance and rental insurance to your plan. Most people think that this is automatically added into the full coverage but most of the time it is not. Safe driving can get your premiums lowered the longer you are with your auto insurance agency.

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