Guide: How to Find the Right Auto Insurance Step 3: Choose the Right Policy
In this step, we'll help give you the tools you need to examine your quotes to make sure that you're making an apples to apples comparison.
Take a look at the following example:
| Example Insurance Quote Comparison | ||||
|---|---|---|---|---|
| Company | Liability Limits | Collision Deductible | Comprehensive Deductible | 6 Month Premium |
| Allstate | 100/200/100 | $500 | $100 | $798 |
| State Farm | 50/100/50 | $1000 | $100 | $557 |
| Liberty Mutual | 100/200/100 | $750 | $150 | $648 |
| Mercury | 15/30/5 | N/A | N/A | $213 |
It's important to realize that the cheapest policy isn't always the best policy. In the above table, the Mercury quote is for New Jersey's state minimum insurance levels: 15/30/5. It is by far the least expensive policy, but the coverage is lacking in many areas. All optional coverage is excluded. If the car is stolen, hit by an uninsured motorist, wrecked in an at-fault accident, or damaged in any other way (a windstorm, for example), this policy offers no protection.
Another important issue with this policy is that its coverage limits are extremely low. A Property Damage Liability limit of $5,000 per accident is grossly inadequate. All it takes is a minor fender-bender with a nice enough car to cause $5,000 worth of damage. If you were found at fault in an accident that totaled a $50,000 car, your insurance would only pay $5,000 and you could be sued for the remaining $45,000.
The same goes for the paltry Bodily Injury Liability limits. Medical expenses have skyrocketed since many states set their minimums. In many cases, a single person's injuries total well over this policy's limit of $15,000 per person. If several people are injured in a car accident, the set limit of $30,000 total to cover all medical expenses is also not enough.
At QuoteWizard, we want you to pay as little as possible for the insurance you need. But sometimes, you need more than just the bare minimum. Out of these sample policies, the two with limits of 100/200/100, while slightly more expensive, are much better choices.
